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.
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

Answer & Solution Discuss in Board Save for Later

2.
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

Answer & Solution Discuss in Board Save for Later

3.
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

Answer & Solution Discuss in Board Save for Later

4.
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

Answer & Solution Discuss in Board Save for Later

5.
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%

Answer & Solution Discuss in Board Save for Later

6.
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

Answer & Solution Discuss in Board Save for Later

7.
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

Answer & Solution Discuss in Board Save for Later

8.
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

Answer & Solution Discuss in Board Save for Later

9.
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

Answer & Solution Discuss in Board Save for Later

10.
Proprietary ratio relates the shareholders fund to:

A. Total assets

B. Profit

C. Loss

D. Dividend

Answer & Solution Discuss in Board Save for Later

1 2 3 4 5 6 7 8 9 10

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

Accounting MCQ Questions and Solutions with Explanations | Commerce

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

Answer & Solution

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

Answer & Solution

3. Which of the following is not a business transaction?

Answer & Solution

4. 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

Answer & Solution

5. Calculate the profit volume ratio from the following statement: Year Sales Profit 2006 4,00,000 (-) 24,000 2007 5,00,000 (+) 30,000

Answer & Solution

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

Answer & Solution

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

Answer & Solution

8. Under capitalization can be resolved by

Answer & Solution

9. 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?`

Answer & Solution

10. Proprietary ratio relates the shareholders fund to:

Answer & Solution

Read More Section(Accounting)

1.
Does IFRS-B allow an entity to combine information about operating segments into one reportable segment?

2.
Loss arising due to insolvency of a partner is to be borne by other partners:

3.
Which of the following is not a business transaction?

4.
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

5.
Calculate the profit volume ratio from the following statement:

Year Sales Profit

2006 4,00,000 (-) 24,000

2007 5,00,000 (+) 30,000

6.
X Ltd company goes into liquidation, and a new company Z Ltd purchases the business of X Ltd. It is a case of

7.
Which one of the following is not true of cash Budget?

8.
Under capitalization can be resolved by

9.
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?`

10.
Proprietary ratio relates the shareholders fund to: