Accounting MCQ Questions and Solutions with Explanations | Commerce

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31.
Given:
Debentures = Rs. 5,00,000
Equity share capital = Rs. 25,00,000
Cash = Rs. 1,00,000
Debtor = Rs. 2,00,000
Debt Equity Ratio will be

A. 5 : 1

B. 0.2 : 1

C. 5.6 : 1

D. None of these

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32.
Marginal safety is associated with:

A. Profit volume ratio/profit

B. Sales-profit/profit volume ratio

C. P/V ratio/Fixed cost + desired profit

D. Sales/profit volume ratio

E. Profit/profit volume ratio

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33.
Accounting Standards Board of India was established in the year

A. 1970

B. 1972

C. 1973

D. 1977

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34.
Which is not included in current liability-

A. Unclaimed Dividends

B. Sundry Creditors

C. Prepaid Insurance

D. Bank Overdraft

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35.
Given:
Cash in hand: Rs. 10,000
Debtor: Rs. 20,000
Bills receivable: Rs. 5,000
Plant : Rs. 5,000
Creditor: Rs. 15,000
Net Working Capital will be

A. Rs. 25,000

B. Rs. 20,000

C. Rs. 40,000

D. None of these

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36.
Average profit of a firm is Rs. 10,000. Firm's capital is Rs. 70,000 and normal return of this business is expected at 10%. By capitalisation method, Goodwill be

A. Rs. 30,000

B. Rs. 60,000

C. Rs. 1,00,000

D. Rs. 1,70,000

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37.
As per the SEBI regulation, a minimum of . . . . . . . .% of the issued capital must be subscribed in order to validate a public share issue, failing of which, the issue may be cancelled and may be reissed on a future date.

A. 75

B. 80

C. 85

D. 90

E. 95

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38.
Prepaid rent is associated with:

A. Nominal account

B. Personal account

C. Tangible real account

D. Intangible real account

E. Representative personal account

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39.
What is the excess of net assets over consideration paid called?

A. Capital reserve

B. Reserve capital

C. Security premium

D. Goodwill

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40.
Sales of a firm are Rs. 40 lacs; variable costs Rs. 10 lacs; fixed costs Rs. 15 lacs; interest Rs. 5 lacs. Combined leverage of the firm will be

A. 2.5

B. 3

C. 2

D. 8

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Accounting MCQ Questions and Solutions with Explanations | Commerce

31. Given: Debentures = Rs. 5,00,000 Equity share capital = Rs. 25,00,000 Cash = Rs. 1,00,000 Debtor = Rs. 2,00,000 Debt Equity Ratio will be

Answer & Solution

32. Marginal safety is associated with:

Answer & Solution

33. Accounting Standards Board of India was established in the year

Answer & Solution

34. Which is not included in current liability-

Answer & Solution

35. Given: Cash in hand: Rs. 10,000 Debtor: Rs. 20,000 Bills receivable: Rs. 5,000 Plant : Rs. 5,000 Creditor: Rs. 15,000 Net Working Capital will be

Answer & Solution

36. Average profit of a firm is Rs. 10,000. Firm's capital is Rs. 70,000 and normal return of this business is expected at 10%. By capitalisation method, Goodwill be

Answer & Solution

37. As per the SEBI regulation, a minimum of . . . . . . . .% of the issued capital must be subscribed in order to validate a public share issue, failing of which, the issue may be cancelled and may be reissed on a future date.

Answer & Solution

38. Prepaid rent is associated with:

Answer & Solution

39. What is the excess of net assets over consideration paid called?

Answer & Solution

40. Sales of a firm are Rs. 40 lacs; variable costs Rs. 10 lacs; fixed costs Rs. 15 lacs; interest Rs. 5 lacs. Combined leverage of the firm will be

Answer & Solution

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31.
Given:
Debentures = Rs. 5,00,000
Equity share capital = Rs. 25,00,000
Cash = Rs. 1,00,000
Debtor = Rs. 2,00,000
Debt Equity Ratio will be

32.
Marginal safety is associated with:

33.
Accounting Standards Board of India was established in the year

34.
Which is not included in current liability-

35.
Given:
Cash in hand: Rs. 10,000
Debtor: Rs. 20,000
Bills receivable: Rs. 5,000
Plant : Rs. 5,000
Creditor: Rs. 15,000
Net Working Capital will be

36.
Average profit of a firm is Rs. 10,000. Firm's capital is Rs. 70,000 and normal return of this business is expected at 10%. By capitalisation method, Goodwill be

37.
As per the SEBI regulation, a minimum of . . . . . . . .% of the issued capital must be subscribed in order to validate a public share issue, failing of which, the issue may be cancelled and may be reissed on a future date.

38.
Prepaid rent is associated with:

39.
What is the excess of net assets over consideration paid called?

40.
Sales of a firm are Rs. 40 lacs; variable costs Rs. 10 lacs; fixed costs Rs. 15 lacs; interest Rs. 5 lacs. Combined leverage of the firm will be