Accounting MCQ Questions and Solutions with Explanations

Section 1 Section 2 Section 3 Section 4 Section 5 Section 6 Section 7 Section 8 Section 9 Section 10 Section 11 Section 12 Section 13 Section 14 Section 15 Section 16 Section 17 Section 18 Section 19 Section 20 Section 21 Section 22 Section 23 Section 24 Section 25

1.
In case of inter-company holdings, the purchasing company, at the time of payment of the purchase consideration surrenders the shares in the vendor company by crediting

A. Vendor Company's A/c

B. Shares in the Vendor Company's A/c

C. Share Capital A/c

D. None of the above

Answer & Solution Discuss in Board Save for Later

2.
Which of the following is 'true' regarding the Prudence Principle of Accounting?

A. Taking care of the future losses

B. Taking care of the future profits

C. Taking care of bad debts

D. Taking care of inventory and depreciation

Answer & Solution Discuss in Board Save for Later

3.
Paid salary Rs. 2,000 to Mohan. Which account will be debited in this transaction?

A. Mohan's account

B. Cash account

C. Trading account

D. Salary account

Answer & Solution Discuss in Board Save for Later

4.
In case the opening stock was Rs. 5,000, purchases Rs. 15,000 direct expenses Rs. 2,000 and closing stock Rs. 2,500, the cost of goods sold had been:

A. Rs. 20,000

B. Rs. 19,500

C. Rs. 21,500

D. Rs. 22,000

Answer & Solution Discuss in Board Save for Later

5.
Balance of cash book shows-

A. Deposited amount in bank

B. Difference between income and expenditure

C. Net real income

D. Total available cash

Answer & Solution Discuss in Board Save for Later

6.
The Chartered Accountants Act was enacted in the year:

A. 1951

B. 1955

C. 1959

D. 1949

Answer & Solution Discuss in Board Save for Later

7.
If capital on 1^st January is Rs. 19,400 and on 31^st December is Rs. 21,500, drawing is Rs. 4,300. Find profit/loss?

A. Rs. 2,000 Profit

B. Rs. 2,200 Loss

C. Rs. 6,400 Profit

D. Rs. 6,400 Loss

Answer & Solution Discuss in Board Save for Later

8.
The break even point is where-

A. Maximizes profit

B. Minimizes profit

C. Neither profit or loss

D. The company should stop production

Answer & Solution Discuss in Board Save for Later

9.
On the admission of a new partner, the increases in the value of an asset is credited to

A. Profit and Loss Account

B. Asset Account

C. Old Partners Capital Account

D. Revaluation Account

Answer & Solution Discuss in Board Save for Later

10.
All equity shareholder are

A. Representative of company

B. Owners of the company

C. Lender of company

D. Customers of company

Answer & Solution Discuss in Board Save for Later

1 2 3 4 5 6 7 8 9 10

Accounting MCQ Questions and Solutions with Explanations | Commerce

1. In case of inter-company holdings, the purchasing company, at the time of payment of the purchase consideration surrenders the shares in the vendor company by crediting

Answer & Solution

2. Which of the following is 'true' regarding the Prudence Principle of Accounting?

Answer & Solution

3. Paid salary Rs. 2,000 to Mohan. Which account will be debited in this transaction?

Answer & Solution

4. In case the opening stock was Rs. 5,000, purchases Rs. 15,000 direct expenses Rs. 2,000 and closing stock Rs. 2,500, the cost of goods sold had been:

Answer & Solution

5. Balance of cash book shows-

Answer & Solution

6. The Chartered Accountants Act was enacted in the year:

Answer & Solution

7. If capital on 1st January is Rs. 19,400 and on 31st December is Rs. 21,500, drawing is Rs. 4,300. Find profit/loss?

Answer & Solution

8. The break even point is where-

Answer & Solution

9. On the admission of a new partner, the increases in the value of an asset is credited to

Answer & Solution

10. All equity shareholder are

Answer & Solution

Read More Section(Accounting)

1.
In case of inter-company holdings, the purchasing company, at the time of payment of the purchase consideration surrenders the shares in the vendor company by crediting

2.
Which of the following is 'true' regarding the Prudence Principle of Accounting?

3.
Paid salary Rs. 2,000 to Mohan. Which account will be debited in this transaction?

4.
In case the opening stock was Rs. 5,000, purchases Rs. 15,000 direct expenses Rs. 2,000 and closing stock Rs. 2,500, the cost of goods sold had been:

5.
Balance of cash book shows-

6.
The Chartered Accountants Act was enacted in the year:

7.
If capital on 1^st January is Rs. 19,400 and on 31^st December is Rs. 21,500, drawing is Rs. 4,300. Find profit/loss?

8.
The break even point is where-

9.
On the admission of a new partner, the increases in the value of an asset is credited to

10.
All equity shareholder are