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-1 section-16

Does IFRS-B allow an entity to combine information about operating segments into one reportable segment?

A) Yes, if the operating segments do not meet the quantitative thresholds B) Yes, if the operating segments share the majority of the aggregation criteria listed in this IFRS C) Yes, if the operating segments have similar economic characteristics D) All of the above

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Answer & Solution

Answer: Option D

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Loss arising due to insolvency of a partner is to be borne by other partners:

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

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Answer & Solution

Answer: Option C

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Which of the following is not a business transaction?

A) Bought furniture of Rs. 26,000 for business B) Paid Rs. 2,000 for salaries of employees C) Paid Rs. 5,000 from a personal bank account for domestic use D) All of the above

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Answer & Solution

Answer: Option C

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The value of HR is the function of the average salary of the employees and their average employment tenure in the organisation. This is the essence of

A) five-dimensional model B) unpurchased goodwill model C) aggregate payment model D) casual, intervening and end-result model

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Answer & Solution

Answer: Option C

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Calculate the profit volume ratio from the following statement:

Year	Sales	Profit
2006	4,00,000	(-) 24,000
2007	5,00,000	(+) 30,000

A) 20% B) 40% C) 15% D) 50%

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Answer & Solution

Answer: Option B

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X Ltd company goes into liquidation, and a new company Z Ltd purchases the business of X Ltd. It is a case of

A) Amalgamation B) Absorption C) Internal reconstruction D) External reconstruction

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Answer & Solution

Answer: Option D

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Which one of the following is not true of cash Budget?

A) The shortage or excess of cash would appear in a particular period B) All inflows world arise before outflows for those periods C) Only revenue nature cash flows are shown D) Proceeds from issue of share capital is shown as an inflow

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Answer & Solution

Answer: Option C

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Under capitalization can be resolved by

A) Issue of bonus share B) Redemption of preference share C) Redemption of debenture D) By paying interest on debentures

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Answer & Solution

Answer: Option A

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When net profit is Rs. 2,25,000; taxes Rs. 25,000 and net worth Rs. 10,00,000 what is the rate of return on shareholder's equity?`

A) 22.5% B) 20% C) 25% D) Cannot be calculated

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Answer & Solution

Answer: Option A

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Proprietary ratio relates the shareholders fund to:

A) Total assets B) Profit C) Loss D) Dividend

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Answer & Solution

Answer: Option A

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