Accounting MCQ Questions and Solutions with Explanations

Accounting MCQ Questions and Solutions with Explanations | Commerce

Accounting MCQ Questions and answers with easy and logical explanations. Commerce provides you all type of quantitative and competitive aptitude mcq questions with easy and logical explanations. Accounting MCQ is important for exams like B.COM, M.COM, BBA, BBM, CA, CS, CMA, CPA, CFA, UPSC, NET, Banking and other commerce department exam. Page-8 section-7

W, X, Y are partners. They admitted Z into the firm and gave him guarantee that his share in profits will not be less than Rs. 10,000 p.a.. Profits will be shared in 4 : 3 : 3 : 2. If profit for the year is Rs. 48,000 then what is profit share of each partner?

A) W = 15,200, X = 11,400, Y = 11,400, Z = 10,000 B) W = 16,000, X = 11,000, Y = 11,000, Z = 10,000 C) W = 16,000, X = 12,000, Y = 12,000, Z = 8,000 D) W = 15,200, X = 11,200, Y = 12,000, Z = 10,400

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Answer & Solution

Answer: Option A

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After reissue of forfeited shares the balance of Share Forfeited Account will be transferred to:

A) Share Capital Account B) Capital Reserve Account C) Shareholder's Account D) General Reserve Account

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Answer: Option B

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A company was incorporated on 1^st May, 1997 for acquiring a business from 1^st January 1997. The sales for January, March and September is one and a half times, and the sale of December is twice and that of February is half of the average monthly sale of the year.
The ratio of sale for the period prior to incorporation and after the incorporation will be:

A) 4 : 8 B) 17 : 37 C) 49 : 99 D) 59 : 109

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Answer: Option D

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GAAP required to:

A) Global harmonization in accounting B) Value C) Price D) Journal

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Answer: Option A

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Match the items given in column-I with the appropriate particulars listed in column-II

Column-I	Column-II
a. Debit balance of the cash book	1. Overdraft
b. Debit balance of the passbook	2. Favourable balance
c. Interest charged by bank	3. Debited in passbook
d. Interest provided by bank	4. Credited in passbook

A) a-2, b-1, c-3, d-4 B) a-1, b-2, c-4, d-3 C) a-3, b-4, c-1, d-2 D) a-4, b-2, c-1, d-3

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Answer: Option A

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Capital Profits are earned from:

A) Sale of Current Asset B) Sale of Fixed Asset C) Capital Restructuring D) Business Transactions

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Answer: Option B

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Which of the following should be deducted from the share capital to find out paid-up capital?

A) Calls-in-advance B) Calls-in-arrear C) Securities premium D) Bonus

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Answer: Option B

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The accounting concepts which help in ascertaining the profit/loss correctly are:

A) Realisation and matching B) Going concern and business C) Cost and equivalence D) Money measurement and cost

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Answer & Solution

Answer: Option A

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Which of the following is not a source of funds:

A) Purchase of machinery B) Profit earned during the year C) Issue of share capital D) Long term loan raised

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Answer: Option A

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Which one of the following is not a clerical error?

A) Error of omission B) Error of commission C) Error of principle D) Compensating error

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Answer & Solution

Answer: Option C

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