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.
The head office of "The Institute of Cost and Works Accountants of India" is located at

A. Delhi

B. Mumbai

C. Chennai

D. Kolkata

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2.
If trade creditors are Rs. 10,000 unpaid expenses 10% of creditors; current rato 2 : 1 and stock Rs. 7,000, then the quick assets will be:

A. Rs. 10,000

B. Rs. 12,000

C. Rs. 14,000

D. Rs. 15,000

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3.
If the preference shares are to be redeemed at a premium, the amount of premium may be paid from

A. Security premium or profit and loss A/c

B. Share-capital account

C. Profit and loss A/c

D. Capital redemption fund

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4.
A and B are partners who share profit and loss equally. A with drawing Rs. 400 regularly at the end of each month for half year ended at 30^th June 2008. What will be the amount of interest if 5% p.a. interest is charged on drawing?

A. Rs. 200

B. Rs. 100

C. Rs. 25

D. Rs. 50

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5.
Given below are two statements, one labelled as Assertion (A) and the other as Reason (R)
Assertion (A): Gross profit ratio is calculated on the basis of net sales.
Reason (R): Gross profit ratio measure overall profitability of a concern.
Choose the correct answer:

A. Both (A) and (R) are true and (R) is correct explanation of (A)

B. Both (A) and (R) are true but (R) is not be correct explanation of (A)

C. (A) is true but (R) is false

D. (A) is false but (R) is true

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6.
The difference between 'subscribed capital' and 'called up capital' is called

A. Calls in arrear

B. Calls in advance

C. Uncalled capital

D. Paid up capital

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7.
Wages paid for installation of new machines is debited to wages account. This is an error of

A. Omission

B. Principle

C. Sumation

D. Wrong account

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8.
The Indian Accounting Standard 10 is related to

A. Valuation of Inventories

B. Accounting for Government Grants

C. Depreciation Accounting

D. Accounting for fixed Assets

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9.
Assertion (A): Personal transactions of the business owners are not recorded in the books.
Reason (R): According to the business entity concept, each business enterprise is considered an accounting unit separate from owners.

A. Both (A) and (R) are correct, and (R) is the correct explanation of (A)

B. Both (A) and (R) are correct, but (R) is not the cor rect explanation of (A)

C. (A) is correct, but (R) is incorrect

D. (A) is incorrect, but (R) is correct

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10.
Net working Capital refers to:

A. Current assets

B. Current assets minus current liabilities

C. Equity share capital minus fixed assets

D. Retained earnings

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Accounting MCQ Questions and Solutions with Explanations | Commerce

1. The head office of "The Institute of Cost and Works Accountants of India" is located at

Answer & Solution

2. If trade creditors are Rs. 10,000 unpaid expenses 10% of creditors; current rato 2 : 1 and stock Rs. 7,000, then the quick assets will be:

Answer & Solution

3. If the preference shares are to be redeemed at a premium, the amount of premium may be paid from

Answer & Solution

4. A and B are partners who share profit and loss equally. A with drawing Rs. 400 regularly at the end of each month for half year ended at 30th June 2008. What will be the amount of interest if 5% p.a. interest is charged on drawing?

Answer & Solution

5. Given below are two statements, one labelled as Assertion (A) and the other as Reason (R) Assertion (A): Gross profit ratio is calculated on the basis of net sales. Reason (R): Gross profit ratio measure overall profitability of a concern. Choose the correct answer:

Answer & Solution

6. The difference between 'subscribed capital' and 'called up capital' is called

Answer & Solution

7. Wages paid for installation of new machines is debited to wages account. This is an error of

Answer & Solution

8. The Indian Accounting Standard 10 is related to

Answer & Solution

9. Assertion (A): Personal transactions of the business owners are not recorded in the books. Reason (R): According to the business entity concept, each business enterprise is considered an accounting unit separate from owners.

Answer & Solution

10. Net working Capital refers to:

Answer & Solution

Read More Section(Accounting)

1.
The head office of "The Institute of Cost and Works Accountants of India" is located at

2.
If trade creditors are Rs. 10,000 unpaid expenses 10% of creditors; current rato 2 : 1 and stock Rs. 7,000, then the quick assets will be:

3.
If the preference shares are to be redeemed at a premium, the amount of premium may be paid from

4.
A and B are partners who share profit and loss equally. A with drawing Rs. 400 regularly at the end of each month for half year ended at 30^th June 2008. What will be the amount of interest if 5% p.a. interest is charged on drawing?

5.
Given below are two statements, one labelled as Assertion (A) and the other as Reason (R)
Assertion (A): Gross profit ratio is calculated on the basis of net sales.
Reason (R): Gross profit ratio measure overall profitability of a concern.
Choose the correct answer:

6.
The difference between 'subscribed capital' and 'called up capital' is called

7.
Wages paid for installation of new machines is debited to wages account. This is an error of

8.
The Indian Accounting Standard 10 is related to

9.
Assertion (A): Personal transactions of the business owners are not recorded in the books.
Reason (R): According to the business entity concept, each business enterprise is considered an accounting unit separate from owners.

10.
Net working Capital refers to: