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.
AS-3 is related to

A. Cash Flow Statement

B. Fund Flow Statement

C. Accounting for Depreciation

D. None of these

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2.
Which one of the following statement is not true?

A. The object of trial balance is to test the accuracy of the books

B. Trial balance provides basis for preparation of final accounts

C. Errors of principles do not affect the agreement of the trial balance

D. Compensatory errors are also known as equalising errors

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3.
Gross Profit is equal to

A. Sales - Closing stock

B. Sales - Cost of goods sold

C. Sales - (opening stock + Purchases + Closing stock)

D. (Sales + Closing stock) - (opening stock + Purchase + all direct and indirect expenses)

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4.
Dissolution of partnership between all partners of firm is called . . . . . . . .

A. dissolution of firm

B. dissolution of partnership

C. dissolution of firm name

D. none of the above

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5.
Amount received from joint life policy in case of a death of a partner will be credited in partner's capital account to

A. To all partners in profit sharing ratio

B. To remaining partners in profit sharing ratio

C. to only deceased partner's account

D. None of the above

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6.
In case of a company, total assets less outside liabilities is called:

A. Net working capital

B. Gross working capital

C. Deferred liabilities

D. Net worth

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7.
For paying liabilities not taken over by the purchasing company, the vendor company credits

A. Realisation A/c

B. Bank A/c

C. Liabilities A/c

D. Assets A/c

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8.
A motor car which was purchased for Rs. 20,000 had its book value Rs. 12,000 was sold for Rs. 25,000, the capital profits will be:

A. Rs. 5,000

B. Rs. 8,000

C. Rs. 13,000

D. Rs. 25,000

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9.
If a machinery of Rs. 7,20,000 is purchased against the issue of fully paid shares of Rs. 8,00,000, then balance of Rs. 80,000 is debited to

A. Goodwill account

B. Capital reserve account

C. Profit and Loss account

D. Discount on the issue of shares account

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10.
The minimum amount that should be called by a company with application for its shares is the following per cent of face value of shares:

A. 2%

B. 5%

C. 10%

D. 15%

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Accounting MCQ Questions and Solutions with Explanations | Commerce

1. AS-3 is related to

Answer & Solution

2. Which one of the following statement is not true?

Answer & Solution

3. Gross Profit is equal to

Answer & Solution

4. Dissolution of partnership between all partners of firm is called . . . . . . . .

Answer & Solution

5. Amount received from joint life policy in case of a death of a partner will be credited in partner's capital account to

Answer & Solution

6. In case of a company, total assets less outside liabilities is called:

Answer & Solution

7. For paying liabilities not taken over by the purchasing company, the vendor company credits

Answer & Solution

8. A motor car which was purchased for Rs. 20,000 had its book value Rs. 12,000 was sold for Rs. 25,000, the capital profits will be:

Answer & Solution

9. If a machinery of Rs. 7,20,000 is purchased against the issue of fully paid shares of Rs. 8,00,000, then balance of Rs. 80,000 is debited to

Answer & Solution

10. The minimum amount that should be called by a company with application for its shares is the following per cent of face value of shares:

Answer & Solution

Read More Section(Accounting)

1.
AS-3 is related to

2.
Which one of the following statement is not true?

3.
Gross Profit is equal to

4.
Dissolution of partnership between all partners of firm is called . . . . . . . .

5.
Amount received from joint life policy in case of a death of a partner will be credited in partner's capital account to

6.
In case of a company, total assets less outside liabilities is called:

7.
For paying liabilities not taken over by the purchasing company, the vendor company credits

8.
A motor car which was purchased for Rs. 20,000 had its book value Rs. 12,000 was sold for Rs. 25,000, the capital profits will be:

9.
If a machinery of Rs. 7,20,000 is purchased against the issue of fully paid shares of Rs. 8,00,000, then balance of Rs. 80,000 is debited to

10.
The minimum amount that should be called by a company with application for its shares is the following per cent of face value of shares: