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-19

A private company does not:

A) Restrict the right to transfer the shares B) Limit the number of its members C) Appoint auditor D) Publicly invite subscription to shares

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Answer & Solution

Answer: Option D

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A and B are partners sharing profit and losses in 5 : 3. They decided to admit C and provide him $${\frac{3}{{10}}^{{\text{th}}}}$$ share in profits. what will be new profit sharing ratio between A, B and C?

A) 10 : 20 : 30 B) 1 : 7 : 2 C) 3 : 6 : 1 D) 35 : 21 : 24

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Answer & Solution

Answer: Option D

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In case of insolvency of a partner, any balance in Reserve Fund or Profit and Loss A/c is distributed in all partners

A) equally B) in profit sharing ratio C) in the ratio of their capital D) none of the above

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Answer & Solution

Answer: Option B

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Inventory of a manufacturing enterprise includes:

A) Raw materials B) Work in progress C) Finished stock D) All the above

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Answer & Solution

Answer: Option D

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Cost, salvage and useful life of an asset are Rs. 10,000, Rs. 1,000 and 3 years respectively. The amount of depreciation as per sum of the years digit method for the first year will be

A) Rs. 5,000 B) Rs. 4,500 C) Rs. 3,333 D) Rs. 3,000

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Answer & Solution

Answer: Option B

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Excess of cost of investment over paid-up value of the shares is considered as

A) goodwill B) capital reserve C) minority interest D) none of the above

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Answer & Solution

Answer: Option A

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Loss caused by theft of cash by cashier during business hours is a loss of

A) Revenue nature B) Capital nature C) Deferred revenue nature D) None of these

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Answer: Option A

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A company cannot redeem its debentures

A) Out of accumulated profits B) Out of accumulated losses C) By purchase of own debentures from market D) By conversion of debentures into shares

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Answer & Solution

Answer: Option B

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Statement I If the going concern concept is no longer valid, then all prepaid assets would be completely written-off immediately.
Statement II Also land held as an investment would be valued at its realisable value.

A) Both statements are correct B) Both statements are incorrect C) Statement I is correct, but Statement II is incorrect D) Statement I is incorrect, but Statement II is correct

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Answer & Solution

Answer: Option D

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Match the following:

List-I	List-II
a. At the beginning of each month	1. 5 and ¹/₂ month
b. At the end of each month quarter	2. 6 and ¹/₂ month
c. At the beginning of each quarter	3. 4 and ¹/₂ month
d. At the end of each	4. 7 and ¹/₂ month

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

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Answer & Solution

Answer: Option A

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