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 Section 26 Section 27 Section 28 Section 29 Section 30

1.
Dividend per share in a company Rs. 2, earning per share is Rs. 5 and the market value of the share is Rs. 25. What will be its yield?

A. 20%

B. 12.5%

C. 8%

D. 25%

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2.
If the current ratio is 2 : 1 and working capital is Rs. 60,000, what is the value of the Current Assets?

A. Rs. 60,000

B. Rs. 1,00,000

C. Rs. 1,20,000

D. Rs. 1,80,000

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3.
If current ratio is 1.75 : 1, working capital Rs. 1,12,500 and stock Rs. 82,500, then Acid test ratio will be:

A. 1.2 : 1

B. 2.9 : 1

C. 2.2 : 1

D. 1.7 : 1

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4.
What is the generally accepted basis of valuation of fixed assets:

A. Historical cost less depreciation

B. Replacement cost

C. Net realisable value

D. Historical cost

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5.
In which order should the following items be shown in the Balance Sheet of a company:
1. Fixed Assets
2. Share held as permanent investments
3. Current Assets
4. Profit and Loss (Dr.)
Select your answer:

A. 1, 2, 3, 4

B. 3, 2, 1, 4

C. 1, 3, 2, 4

D. 4, 3, 1, 2

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6.
Match the following:

List-I List-II

a. Compulsory Dissolution 1. Section 44

b. Dissolution by Court 2. Section 41

c. Dissolution by Notice 3. Section 42

d. Contingent Dissolution 4. Section 43

A. a-4, b-3, c-2, d-1

B. a-3, b-4, c-2, d-1

C. a-2, b-1, c-4, d-3

D. a-2, b-4, c-1, d-3

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7.
X and Y are partners sharing the profit in the ratio of 3 : 2. They take Z as the new partner who is supposed to bring Rs. 25,000 against capital and Rs. 10,000 against goodwill, New profit sharing ratio is 1 : 1 : 1. Z is able to bring only his share of capital. How this will be treated in the books of the firm?

A. X and Y will share goodwill bought by Z as Rs. 4,000 : Rs. 1,000

B. Goodwill be raised to Rs. 30,000 in old profit sharing ratio

C. Both A and B

D. No treatment in the books of the firm

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8.
A company pays to its sundry creditors a sum of Rs. 10,000. This transaction will:

A. Decrease working capital by Rs. 10,000

B. Increase working capital by Rs. 10,000

C. Decrease working capital by Rs. 20,000

D. Neither increase nor decrease working capital

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9.
A and B sharing profits in the ratio of 3 : 2 took out a joint-life policy of Rs. 20,000 on 1^st January 2000 for 20 years, paying annual premium of Rs. 1000. The surrender values of the policy were: 2000 - nil, 2001 - Rs. 550, 2002 - Rs. 970.
On 8^th march 2002 B was dead. What will be the amount to be paid to the policy holders-

A. Rs. 7,250

B. Rs. 7,380

C. Rs. 8,407

D. Rs. 9,360

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10.
If cost of goods sold is Rs. 1,20,000, gross loss is 25% of sales, then what is amount of sales?

A. Rs. 90,000

B. Rs. 96,000

C. Rs. 1,44,000

D. Rs. 1,50,000

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1 2 3 4 5 6 7 8 9 10

List-I	List-II
a. Compulsory Dissolution	1. Section 44
b. Dissolution by Court	2. Section 41
c. Dissolution by Notice	3. Section 42
d. Contingent Dissolution	4. Section 43

Accounting MCQ Questions and Solutions with Explanations | Commerce

1. Dividend per share in a company Rs. 2, earning per share is Rs. 5 and the market value of the share is Rs. 25. What will be its yield?

Answer & Solution

2. If the current ratio is 2 : 1 and working capital is Rs. 60,000, what is the value of the Current Assets?

Answer & Solution

3. If current ratio is 1.75 : 1, working capital Rs. 1,12,500 and stock Rs. 82,500, then Acid test ratio will be:

Answer & Solution

4. What is the generally accepted basis of valuation of fixed assets:

Answer & Solution

5. In which order should the following items be shown in the Balance Sheet of a company: 1. Fixed Assets 2. Share held as permanent investments 3. Current Assets 4. Profit and Loss (Dr.) Select your answer:

Answer & Solution

6. Match the following: List-I List-II a. Compulsory Dissolution 1. Section 44 b. Dissolution by Court 2. Section 41 c. Dissolution by Notice 3. Section 42 d. Contingent Dissolution 4. Section 43

Answer & Solution

Answer & Solution

8. A company pays to its sundry creditors a sum of Rs. 10,000. This transaction will:

Answer & Solution

Answer & Solution

10. If cost of goods sold is Rs. 1,20,000, gross loss is 25% of sales, then what is amount of sales?

Answer & Solution

Read More Section(Accounting)

1.
Dividend per share in a company Rs. 2, earning per share is Rs. 5 and the market value of the share is Rs. 25. What will be its yield?

2.
If the current ratio is 2 : 1 and working capital is Rs. 60,000, what is the value of the Current Assets?

3.
If current ratio is 1.75 : 1, working capital Rs. 1,12,500 and stock Rs. 82,500, then Acid test ratio will be:

4.
What is the generally accepted basis of valuation of fixed assets:

5.
In which order should the following items be shown in the Balance Sheet of a company:
1. Fixed Assets
2. Share held as permanent investments
3. Current Assets
4. Profit and Loss (Dr.)
Select your answer:

6.
Match the following:

List-I List-II

a. Compulsory Dissolution 1. Section 44

b. Dissolution by Court 2. Section 41

c. Dissolution by Notice 3. Section 42

d. Contingent Dissolution 4. Section 43

8.
A company pays to its sundry creditors a sum of Rs. 10,000. This transaction will:

10.
If cost of goods sold is Rs. 1,20,000, gross loss is 25% of sales, then what is amount of sales?