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-23

If opening stock Rs. 50,000, closing stock Rs. 60,000 and cost of gold sold is Rs. 2,20,00, then stock turnover ratio will be

A) Two times B) Three times C) Four times D) One times

Discuss

Answer & Solution

Answer: Option C

No explanation is given for this question. Let's Discuss on Board

Discount on issue of shares by a company should be shown on the:

A) Debit side of the Profit and Loss account B) Asset side of the Balance Sheet C) Credit side of the Profit and Loss account D) Liability side of the Balance Sheet

Discuss

Answer & Solution

Answer: Option B

No explanation is given for this question. Let's Discuss on Board

Which one of the following statements is not true?

A) In the absence of partnership deed profit and loss is distributed among partners in equal ratio B) Minor partner can get his share of profit C) The relation between partners are created through deed D) Registration of partnership is compulsory

Discuss

Answer & Solution

Answer: Option D

No explanation is given for this question. Let's Discuss on Board

"Every debit should have equal and corresponding credit." Which of the following Accounting Concept says so?

A) Matching Concept B) Dual Aspect Concept C) Accrual Concept D) Business Entity Concept E) Realization Concept

Discuss

Answer & Solution

Answer: Option B

No explanation is given for this question. Let's Discuss on Board

The objective of hedge accounting is to represent, in the financial statements, the effect of an entity's that use financial instruments to manage arising from particular risks that could affect profit or loss.

A) risk management activities, exposures B) risk mitigation activities, credit losses C) risk diversification activities, credit concentration D) risk mitigation activities, credit exposures

Discuss

Answer & Solution

Answer: Option A

No explanation is given for this question. Let's Discuss on Board

If the current ratio of a firm is 2.5 : 1 and working capital is Rs. 90,000 then the amount of current liabilities will be

A) Rs. 2,25,000 B) Rs. 1,35,000 C) Rs. 60,000 D) Rs. 36,000

Discuss

Answer & Solution

Answer: Option C

No explanation is given for this question. Let's Discuss on Board

Asha and Vipasha are equal partners with fixed capitals of Rs. 5,00,000 and Rs. 2,00,000, respectively. After closing the accounts for the year ending 31^st March 2019, it was discovered that the interest on capitals was provided @ 6% per annum instead of 5% per annum. In the adjusting entry

A) Asha will be debited with Rs. 1,500 and Vipasha will be credited with Rs. 1,500 B) Asha will be credited with Rs. 1,500 and Vipasha will be debited with Rs. 1,500 C) Asha will be debited with Rs. 5,000 and Vipasha will be debited with Rs. 2,000 D) Asha will be credited with Rs. 5,000 and Vipasha will be credited with Rs. 2,000

Discuss

Answer & Solution

Answer: Option A

No explanation is given for this question. Let's Discuss on Board

Match the items of the following two lists and indicate the correct answer:

List-I	List-II
a. Earning ability of a firm	1. Basis of accounting
b. Conservatism	2. P/V ratio
c. Cash profit	3. Cash flow statement
d. Cash and accrual	4. Prudence

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

Discuss

Answer & Solution

Answer: Option A

No explanation is given for this question. Let's Discuss on Board

The more accurate guide to liquidity of a firm is provided by:

A) The current ratio B) The quick ratio C) The receivable-turnover ratio D) The inventory-turnover ratio

Discuss

Answer & Solution

Answer: Option B

No explanation is given for this question. Let's Discuss on Board

A machine was purchased on 1^st January 1987. It was depreciated by written down value method at the rate of 10% P.A. The depreciated value of machine as on 1^st January 1990 is Rs. 13,122. The cost of machine on 1^st January 1990 was

A) Rs. 20,000 B) Rs. 18,000 C) Rs. 22,000 D) Rs. 19,000

Discuss

Answer & Solution

Answer: Option B

No explanation is given for this question. Let's Discuss on Board