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.
Match the following.

List-I List-II

a. The formula for calculating the profit on reissue is . . . . . . . . 1. Article of Association

b. Right shares must be first offerred to existing . . . . . . . . 2. Security premium

c. Premium received on issue of debenture is credited to . . . . . . . . account 3. Amount forfeited less discount on reissue

d. Redeemable preference shares can be issued only when it is authorised by its . . . . . . . . 4. Equity shareholders

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

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

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

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

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2.
Accounting principles are based on

A. Practicability

B. Subjectivity

C. Convenience in recording

D. None of the above

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3.
Four milkmen, A, B, C and D rented a pasture. A grazed 24 cows for 3 months; B grazed 10 cows for 5 months; C grazed 35 cows for 4 months; D grazed 21 cows for 3 months. If A's share of rent is Rs. 720, find the total rent of the field

A. Rs. 3,000

B. Rs. 3,200

C. Rs. 3,250

D. Rs. 3,300

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4.
Average profit of a firm is Rs. 40,000, Its total assets amounted to Rs. 4,00,000 and its liabilities to Rs. 1,00,000. If return is similar of same firm is 10% on capital employed, what will be the value of goodwill of this firm:

A. Rs. 2,00,000

B. Rs. 4,00,000

C. Rs. 1,00,000

D. Rs. 3,00,000

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5.
When working capital is Rs. 60,000 and current ratio is 3 : 1 the current liabilities will be:

A. Rs. 30,000

B. Rs. 80,000

C. Rs. 90,000

D. Rs. 1,20,000

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6.
Capital is equal to:

A. Fixed asset + current asset

B. Total cash + Bank Balances

C. Total assets - Total external liabilities

D. None of these

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7.
Credit sales of business assets are recorded in

A. Sales journal

B. Journal proper

C. Cash book

D. Sales account

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8.
Identify, which of the following partnership's characteristic is a disadvantage?

A. Voluntary association

B. Minimal legal restrictions

C. Limited liability

D. None of the above

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9.
Goodwill is shown on

A. Asset side of Balance Sheet

B. Liabilities side of Balance Sheet

C. Debit side of Profit and Loss Account

D. Debit side of Trading Account

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10.
In the absence of any provision in the partnership agreement, partners are paid interest on partners loan @

A. 5% per annum

B. 6% per annum

C. 8% per annum

D. 10% per annum

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1 2 3 4 5 6 7 8 9 10

List-I	List-II
a. The formula for calculating the profit on reissue is . . . . . . . .	1. Article of Association
b. Right shares must be first offerred to existing . . . . . . . .	2. Security premium
c. Premium received on issue of debenture is credited to . . . . . . . . account	3. Amount forfeited less discount on reissue
d. Redeemable preference shares can be issued only when it is authorised by its . . . . . . . .	4. Equity shareholders

Accounting MCQ Questions and Solutions with Explanations | Commerce

Answer & Solution

2. Accounting principles are based on

Answer & Solution

3. Four milkmen, A, B, C and D rented a pasture. A grazed 24 cows for 3 months; B grazed 10 cows for 5 months; C grazed 35 cows for 4 months; D grazed 21 cows for 3 months. If A's share of rent is Rs. 720, find the total rent of the field

Answer & Solution

4. Average profit of a firm is Rs. 40,000, Its total assets amounted to Rs. 4,00,000 and its liabilities to Rs. 1,00,000. If return is similar of same firm is 10% on capital employed, what will be the value of goodwill of this firm:

Answer & Solution

5. When working capital is Rs. 60,000 and current ratio is 3 : 1 the current liabilities will be:

Answer & Solution

6. Capital is equal to:

Answer & Solution

7. Credit sales of business assets are recorded in

Answer & Solution

8. Identify, which of the following partnership's characteristic is a disadvantage?

Answer & Solution

9. Goodwill is shown on

Answer & Solution

10. In the absence of any provision in the partnership agreement, partners are paid interest on partners loan @

Answer & Solution

Read More Section(Accounting)

2.
Accounting principles are based on

3.
Four milkmen, A, B, C and D rented a pasture. A grazed 24 cows for 3 months; B grazed 10 cows for 5 months; C grazed 35 cows for 4 months; D grazed 21 cows for 3 months. If A's share of rent is Rs. 720, find the total rent of the field

4.
Average profit of a firm is Rs. 40,000, Its total assets amounted to Rs. 4,00,000 and its liabilities to Rs. 1,00,000. If return is similar of same firm is 10% on capital employed, what will be the value of goodwill of this firm:

5.
When working capital is Rs. 60,000 and current ratio is 3 : 1 the current liabilities will be:

6.
Capital is equal to:

7.
Credit sales of business assets are recorded in

8.
Identify, which of the following partnership's characteristic is a disadvantage?

9.
Goodwill is shown on

10.
In the absence of any provision in the partnership agreement, partners are paid interest on partners loan @