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-18

Match List-I with List-II and select the correct answer

List-I	List-II
a. Prepaid rent	1. Current liability
b. Bank overdraft	2. Current assets
c. Goodwill	3. Fictitious assets
d. Profit & Loss A/c	4. Intangible assets

A) a-1, b-2, c-3, d-4 B) a-2, b-1, c-4, d-3 C) a-3, b-4, c-1, d-2 D) a-4, b-1, c-3, d-2

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Answer: Option B

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A company forfeited 100 equity shares of Rs. 10 each on which a final call of Rs. 4 per share was unpaid. At what minimum rate per share these shares can be reissued by the company?

A) Rs. 6 B) Rs. 4 C) Rs. 8 D) Rs. 10

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Answer: Option B

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Ram of Allahabad filed a petition in the court for adjudication as insolvent. At that time one month's salary due to five clerks amounted to Rs. 2,000, one month's wages due to ten workers amounted to Rs. 1,500, rent and rates due amounted to Rs. 500. Income tax due amounted to Rs. 1,200 and one month's rent due amounted to Rs. 1,000. The amount of preferential creditors would be:

A) Rs. 2,000 B) Rs. 3,200 C) Rs. 4,200 D) Rs. 6,200

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Answer: Option D

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Outstanding wages will be classified as:

A) capital expenditure B) Revenue expenditure C) Deferred revenue expenditure D) None of the above

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Answer: Option B

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According to Garner Vs. Murray in absence of any contract to contrary deficiency arising on account of a partner becoming insolvent shall be borne by solvent partners in their

A) Profit and loss ratio B) Capital ratio obtained after dissolution of firm C) Capital ratio before the dissolution of firm D) Equal ratio

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Answer: Option C

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Which one of the following statements is not true?

A) When there is one liquidation and one formation it is known as external construction B) Goodwill or Capital reserve arises only when the amalgamation is in the nature of merger C) Under the pooling of interest method, the transferee company incorporates the assets and liabilities of the transferor company at book value D) The vendor company transfers preliminary expenses (at the time of absorption) to equity shareholder's account

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Answer: Option B

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Redeemable preference shares of Rs. 1,00,000 are redeemed at a premium of 5% for which fresh equity shares of Rs. 40,000 are issued at par. What amount should be transferred to Capital Redemption Reserve account:

A) Rs. 1,05,000 B) Rs. 60,000 C) Rs. 40,000 D) Rs. 0

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Answer: Option B

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Profit or loss on revaluation will be borne by

A) all the partners B) the new partners C) the old partners D) None of the above

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Answer: Option C

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Profit on revolution of assets and liabilities in case of amalgamation of partnership firm is

A) Debited to partner's capital account B) Credited to partner's capital account C) Credited to profit and loss account of new firm D) None of the above

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Answer: Option B

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Segment Environmental accounting is the part of

A) environmental management accounting B) environmental financial accounting C) environmental national accounting D) none of the above

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Answer: Option A

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