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-9 section-12

Debtors = Rs. 8,400
Reserve for bad debts = Rs. 400
Cost of sales = Rs. 36,000
Profit = Sales of 40%
Debt collection period is:

A) 45 days B) 49 days C) 75 days D) 86 days

Discuss

Answer & Solution

Answer: Option B

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Which of the following is/are feature(s) of equity share capital

A) dividend is payable only if company has earned profit B) dividend become payable only if such payment has been recommended by board of directors and passed by the Annual General Meeting of Company C) both, dividend is payable only if company has earned profit and dividend become payable only if such payment has been recommended by board of director and passed by the Annual General Meeting of company D) None of these

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Answer & Solution

Answer: Option C

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The convention of conservatism implies that:

A) Expected future losses must be provided for B) Revenue must not be recognised unless it is accrued C) Both the above A and B D) None of the above

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Answer & Solution

Answer: Option C

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Redeemable Preference Shares of Rs. 2,00,00 are to be redeemed at par for which purpose fresh Equity Shares of Rs. 80,000 are issued at a discount of 10%. What amount should be transferred to Capital Redemption Reserve Accounts?

A) Rs. 72,000 B) Rs. 1,20,000 C) Rs. 1,28,000 D) Rs. 2,00,000

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Answer & Solution

Answer: Option C

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Which one of the following is Activity Ratio?

A) Net Profit Ratio B) Current Ratio C) Debtor Turnover Ratio D) None of these

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Answer & Solution

Answer: Option C

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If cost is Rs. 48,000 and gross profit is 20% on sales then calculate amount of gross profit?

A) Rs. 12,000 B) Rs. 60,000 C) Rs. 8,000 D) Rs. 24,000

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Answer & Solution

Answer: Option A

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The depreciation of fixed assets is computed on their

A) Book value B) Market value C) Realizable value D) Scrap value

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Answer & Solution

Answer: Option A

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A company wants to redeem 9% 450 debentures of the face value of Rs. 100 per debenture at a premium of 10%. How many shares of the face value of Rs. 10 is to be issued if they are issued at a premium of 10%:

A) 4,000 share B) 4,500 share C) 5,000 share D) 5.500 share

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Answer & Solution

Answer: Option B

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Capitalization method of valuation is used for the valuation of

A) Shares only B) Goodwill only C) Shares and Goodwill both D) Fixed assets only

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Answer & Solution

Answer: Option B

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The current account of a partner

A) may have a debit or a credit balance B) will always have a debit balance C) will always have a credit balance D) will never have a balance

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Answer & Solution

Answer: Option A

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