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.
Which of the following statement is true?
Redeemable Preference Shares can be redeemed

A. even if they are not fully paid

B. only after the winding up of the company

C. out of profits

D. out of the proceeds of a fresh issue of Debentures

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2.
Calls in advance account is whown seperately in

A. Dr. side of profit and loss account

B. Cr. side of profit and loss account

C. liability side of balance sheet

D. Asset side of balance sheet

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3.
Leasehold property is generally depreciated by:

A. Annuity method

B. Fixed installment method

C. Written down value method

D. Insurance policy method

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4.
Minimum number of members in case of private companyis

A. 1

B. 2

C. 5

D. 10

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5.
From which of the following accounts can bonus shares be issued?

A. Balance in the Profit and Loss A/c

B. Share Premium A/c

C. General Reserve A/c

D. All of the above

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6.
Ploughing-back of profits means:

A. Dividend declared but not claimed by shareholders

B. Non-declaration of dividend in any year

C. Profits earned from illegal sources and employed in business

D. Retaining the earnings of business for future expansion programme

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7.
If credit side of a bank account is greater than debit side, it indicates:

A. Bank overdraft

B. Cash at bank

C. Bank balance

D. Current asset

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8.
Debit: all Expenses and Losses
Credit: all Gains or Income
This formula is applicable for:

A. Representative Personal Accounts

B. Tangible Real Accounts

C. Natural Personal Accounts

D. Intangible Real Accounts

E. Nominal Accounts

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9.
Interest on partner's loan is given to partners

A. 5%

B. 6%

C. 8.25%

D. 9%

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10.
Match the following.

List-I List-II

a. Buy-back of equity shares must be authorised by 1. Not allowed

b. Buy-back of partly paid equity shares 2. Governs buy back of shares

c. Redemption of preference shares 3. Article of Association

d. Section 68 of the Companies Act 4. Only fully paid

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

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

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

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

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1 2 3 4 5 6 7 8 9 10

List-I	List-II
a. Buy-back of equity shares must be authorised by	1. Not allowed
b. Buy-back of partly paid equity shares	2. Governs buy back of shares
c. Redemption of preference shares	3. Article of Association
d. Section 68 of the Companies Act	4. Only fully paid

Accounting MCQ Questions and Solutions with Explanations | Commerce

1. Which of the following statement is true? Redeemable Preference Shares can be redeemed

Answer & Solution

2. Calls in advance account is whown seperately in

Answer & Solution

3. Leasehold property is generally depreciated by:

Answer & Solution

4. Minimum number of members in case of private companyis

Answer & Solution

5. From which of the following accounts can bonus shares be issued?

Answer & Solution

6. Ploughing-back of profits means:

Answer & Solution

7. If credit side of a bank account is greater than debit side, it indicates:

Answer & Solution

8. Debit: all Expenses and Losses Credit: all Gains or Income This formula is applicable for:

Answer & Solution

9. Interest on partner's loan is given to partners

Answer & Solution

10. Match the following. List-I List-II a. Buy-back of equity shares must be authorised by 1. Not allowed b. Buy-back of partly paid equity shares 2. Governs buy back of shares c. Redemption of preference shares 3. Article of Association d. Section 68 of the Companies Act 4. Only fully paid

Answer & Solution

Read More Section(Accounting)

1.
Which of the following statement is true?
Redeemable Preference Shares can be redeemed

2.
Calls in advance account is whown seperately in

3.
Leasehold property is generally depreciated by:

4.
Minimum number of members in case of private companyis

5.
From which of the following accounts can bonus shares be issued?

6.
Ploughing-back of profits means:

7.
If credit side of a bank account is greater than debit side, it indicates:

8.
Debit: all Expenses and Losses
Credit: all Gains or Income
This formula is applicable for:

9.
Interest on partner's loan is given to partners

10.
Match the following.

List-I List-II

a. Buy-back of equity shares must be authorised by 1. Not allowed

b. Buy-back of partly paid equity shares 2. Governs buy back of shares

c. Redemption of preference shares 3. Article of Association

d. Section 68 of the Companies Act 4. Only fully paid