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-17

A machinery was purchased on 1^st January 2000 at a cost of Rs. 1,20,000 and was depreciated by diminishing balance method at the rate of 15% p.a. It was sold on 31^st March 2002 for Rs. 80,000 what was the loss on sale of machine

A) Rs. 3,449 B) Rs. 3,658 C) Rs. 3,251 D) None of the above

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Answer & Solution

Answer: Option A

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'X' Ltd. has a liquid ratio of 2 : 1. If its stock is Rs. 40,000 and its current liabilities are of Rs. 1 Lac, its current ratio will be:

A) 1.4 times B) 2.4 times C) 1.2 times D) 3.4 times

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Answer & Solution

Answer: Option B

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The minimum application money to be paid as per SEBI shall not be more than:

A) 15% of the issue price B) 20% of the issue price C) 25% of the issue price D) 30% of the issue price E) In between 15% to 20% of the issue price

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Answer & Solution

Answer: Option C

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Unclaimed dividends should be shown in the balance sheet of a company under the heading of:

A) Reserve and Surplus B) Provisions C) Current Liabilities D) Miscellaneous Items

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Answer & Solution

Answer: Option C

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Which one of the following pairs is not correctly matched

A) Suppression of Invoices ⇔ External decoradtion B) Surchage deprecition ⇔ Secret reserve C) Debtors cash receipt ⇔ Reduction of fund sales D) Deletion of credit sales ⇔ Understatment of liabilties

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Answer & Solution

Answer: Option A

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Which of the following is a Personal Account:

A) Pre-paid Salary Account B) Drawings Account C) Outstanding Rent Account D) All of the above

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Answer & Solution

Answer: Option D

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Which of the following is an intangible asset?

A) Furniture B) Patent C) Investment D) Losse tools

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Answer & Solution

Answer: Option B

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In Sinking Fund for redemption of Debentures Account, the amount is transferred every year from

A) Reserve Account B) Profit and Loss Account C) Capital Account D) Surplus Account

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Answer & Solution

Answer: Option D

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Sony and Romy are equal partners with fixed capitals of Rs. 4,00,000 and Rs. 3,00,000, respectively. After closing the accounts for the year ending 31^st March 2019, it was discovered that the interest on capitals was provided @ 8% per annum instead of 10% per annum. In the adjusting entry

A) Sony will be credited with Rs. 8,000 and Romy will be credited with Rs. 6,000 B) Sony will be debited with Rs. 8,000 and Romy will be debited with Rs. 6,000 C) Sony will be debited with Rs. 1,000 and Romy will be credited with in Rs. 1,000 D) Sony will be credited with Rs. 1,000 and Romy will be debited with Rs. 1,000

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Answer & Solution

Answer: Option D

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The return of goods by a customer is debited to:

A) Sales Return Account B) Customer's Account C) Purchase Account D) Stock Account

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Answer & Solution

Answer: Option A

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