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.
Income and expenditure account of a non-profit organization is a

A. Real account

B. Nominal account

C. Personal account

D. Representative personal account

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2.
When accounting standard board of India is constituted?

A. 1969

B. 1977

C. 1918

D. 2007

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3.
Following information is given to you:

Sales Rs. 4,00,000

Fixed cost Rs. 1,80,000

Variable cost Rs. 2,00,000

Calculate Break Even Point (BEP) of sales

A. Rs. 6,53,800

B. Rs. 5,52,300

C. Rs. 5,53,846

D. Rs. 5,67,803

E. Rs. 6,50,555

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4.
Which of the following transactions has no effect in the current ratio?

A. Machinery purchased for cash

B. Motor car sold for cash

C. Preference shares redeemed

D. Bills receivables collected

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5.
Which of the following items will result in flow of funds:

A. Credit sale of the Building

B. Issue of Bonus Shares

C. Goodwill written off

D. Transfer of profit to General Reserve

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6.
On using reducing balance method on an asset of Rs. 20,000 at the rate of 10% per annum, depreciation for third year will be:

A. Rs. 6,000

B. Rs. 1,800

C. Rs. 1,620

D. Rs. 2,000

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7.
If the period for writing-off the short working has expired then it is transferred to which account by lessee?

A. Profit and Loss A/c

B. Land owner A/c

C. Royalty A/c

D. Minimum rent A/c

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8.
Assertion (A): Cash flow Statement and Fund Flow Statement disclose same information.
Reason (R): Both are prepared out of the same date
You are to examine these two statements carefully and select the answers:

A. Both (A) and (R) are true and (R) is the correct explanation of (A)

B. Both (A) and (R) are true, but (R) is not correct explanation of (A)

C. (A) is true but (R) is false

D. (A) is false but (R) is true

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9.
Which of the following is not an accounting principle?

A. Dual aspect concept

B. Cost concept

C. Principle of materiality

D. Principle of truthfullness

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10.
Cost of Asset = Rs. 21,000
Scrap value = Rs. 1,000
Depreciation rate = 10% p.a.
What will be the depreciation for the second year if depreciation is charged by straight line method?

A. Rs. 2,100

B. Rs. 2,000

C. Rs. 2,200

D. Rs. 2,400

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1 2 3 4 5 6 7 8 9 10

Sales	Rs. 4,00,000
Fixed cost	Rs. 1,80,000
Variable cost	Rs. 2,00,000

Accounting MCQ Questions and Solutions with Explanations | Commerce

1. Income and expenditure account of a non-profit organization is a

Answer & Solution

2. When accounting standard board of India is constituted?

Answer & Solution

3. Following information is given to you: Sales Rs. 4,00,000 Fixed cost Rs. 1,80,000 Variable cost Rs. 2,00,000 Calculate Break Even Point (BEP) of sales

Answer & Solution

4. Which of the following transactions has no effect in the current ratio?

Answer & Solution

5. Which of the following items will result in flow of funds:

Answer & Solution

6. On using reducing balance method on an asset of Rs. 20,000 at the rate of 10% per annum, depreciation for third year will be:

Answer & Solution

7. If the period for writing-off the short working has expired then it is transferred to which account by lessee?

Answer & Solution

8. Assertion (A): Cash flow Statement and Fund Flow Statement disclose same information. Reason (R): Both are prepared out of the same date You are to examine these two statements carefully and select the answers:

Answer & Solution

9. Which of the following is not an accounting principle?

Answer & Solution

10. Cost of Asset = Rs. 21,000 Scrap value = Rs. 1,000 Depreciation rate = 10% p.a. What will be the depreciation for the second year if depreciation is charged by straight line method?

Answer & Solution

Read More Section(Accounting)

1.
Income and expenditure account of a non-profit organization is a

2.
When accounting standard board of India is constituted?

3.
Following information is given to you:

Sales Rs. 4,00,000

Fixed cost Rs. 1,80,000

Variable cost Rs. 2,00,000

Calculate Break Even Point (BEP) of sales

4.
Which of the following transactions has no effect in the current ratio?

5.
Which of the following items will result in flow of funds:

6.
On using reducing balance method on an asset of Rs. 20,000 at the rate of 10% per annum, depreciation for third year will be:

7.
If the period for writing-off the short working has expired then it is transferred to which account by lessee?

8.
Assertion (A): Cash flow Statement and Fund Flow Statement disclose same information.
Reason (R): Both are prepared out of the same date
You are to examine these two statements carefully and select the answers:

9.
Which of the following is not an accounting principle?

10.
Cost of Asset = Rs. 21,000
Scrap value = Rs. 1,000
Depreciation rate = 10% p.a.
What will be the depreciation for the second year if depreciation is charged by straight line method?