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-14

A, B, C and D are equal partners. A, B and D die together in a plane crash. The accident results in:

A) dissolution of partnership B) dissolution of firm C) both dissolution of partnership and firm D) neither dissolution of partnership nor firm

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Answer & Solution

Answer: Option C

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Which of the following statement regarding the dissolution of a partnership firm is true:

A) Only the assets of the firm can be used for the payment of the firm's liabilities B) Loss on realisation is transferred to partners, capital accounts in their capital ratio C) Any amount realised from the sale of an unrecorded asset is credited to the realisation account D) Partners loan to the firm is transferred to the realisation account with the liabilities of the firm

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Answer & Solution

Answer: Option C

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Interest on loan taken for the purchase of fixed assets is a

A) Revenue Expenditure B) Capital Expenditure C) Deferred Revenue Expenditure D) Capital Loss

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Answer & Solution

Answer: Option B

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IFRS is based on

A) Historical cost B) Fair value C) Both A and B D) None of these

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Answer & Solution

Answer: Option B

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Gopal held 100 shares of Rs. 10 each of a company on which he had paid Rs. 3 on the application and Rs. 2 on the allotment but could not pay Rs. 2 on the first call. The directors forfeited the above share. The share capital will be debited by

A) Rs. 1,000 B) Rs. 700 C) Rs. 500 D) Rs. 800

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Answer & Solution

Answer: Option B

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Which of the following items will be written in a partner's capital account when the capital accounts are fixed?

A) Partner's drawings B) Additional capital introduced by the partner in the firm C) Loan taken by a partner from the firm D) Loan advancedby a partner to the firm

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Answer & Solution

Answer: Option B

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Depreciation is a process of:

A) Allocation B) Valuation C) Both of allocation and valuation D) None of these

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Answer & Solution

Answer: Option C

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Given that,
Inventory turnover ratio = Rs. 6 Time
Average inventory = Rs. 8,000
Selling price = Rs. 25% More then the cost.
What will be the amount of gross profit?

A) Rs. 20,000 B) Rs. 4,000 C) Rs. 10,000 D) Rs. 12,000

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Answer & Solution

Answer: Option D

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Donations received for a special purpose will be taken to the:

A) Income and Expenditure Account B) Assets side of the Balance Sheet C) Liabilities side of the Balance Sheet D) None of the above

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Answer & Solution

Answer: Option C

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Which one of the following statement is true?

A) Capital expenditure does not affect the profitability of a concern, but revenue expenditure does B) Capital expenditure affects the profitability of a concern directly, but revenue expenditure does not C) Capital expenditure affects the profitability of a concern indirectly, but revenue expenditure affects directly D) Both capital expenditure and revenue expenditure affect the profitability of a concern directly

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Answer & Solution

Answer: Option C

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