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

41.
If sales is Rs. 8,00,000, cost of sales is Rs. 4,80,000 and indirect expenses is Rs. 1,20,000, then the net profit ratio will be:

A. 15%

B. 20%

C. 25%

D. 30%

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42.
For the purpose of final accounts, stock is normally valued according to:

A. cost or market value whichever is lower

B. market value

C. replacement cost

D. net realisable value

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43.
X, Y and Z are equal partners with fixed capitals of Rs. 5,00,000, Rs. 3,00,000 and Rs. 1,00,000, respectively. After closing the accounts for the year ending 31^st March 2019, it was discovered that the interest on capitals was provided @ 6% per annum instead of 5% per annum. In the adjusting entry

A. X was debited with Rs. 2,000 and Z was credited with Rs. 2,000

B. X was credited with Rs. 2,000 and Z was debited with Rs. 2,000

C. Dr. X and Cr. Y by Rs. 2,000

D. Cr. X and Dr. Y by Rs. 2,000

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44.
Total Assets Turnover = 4
Net profit = 10%
Total assets = Rs. 50,000
The amount of Net profit would be:

A. Rs. 5,000

B. Rs. 10,000

C. Rs. 20,000

D. Rs. 25,000

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45.
When Partnership Act was passed?

A. 1930

B. 1932

C. 1950

D. 1956

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46.
Given,
Current ratio = Rs. 2.5
Quick ratio = Rs. 2.5
Net working capital = Rs. 30,000
The amount of current liabilities will be

A. Rs. 20,000

B. Rs. 30,000

C. Rs. 50,000

D. Rs. 60,000

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47.
The expense incurred for increasing the productive capacity of business is called as

A. Revenue expense

B. Capital expenditure

C. General expense

D. Deferred revenue expenditure

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48.
Ashoka Ltd.purchased a machine from Tata & Sons for Rs. 1,50,000. This is

A. A transaction

B. An event

C. A non financial data

D. None of the above

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49.
Permanent working capital is generally financed through

A. Long term Capital Funds

B. Government Assistance

C. Internal Financing

D. Short term loans from Banks

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50.
Arrange the following items in the order of their appearance in the preparation of financial statements.
1. Net profit
2. Gross profit
3. Cash at bank

A. 1, 2, 3

B. 3, 2, 1

C. 2, 1, 3

D. 2, 3, 1

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Accounting MCQ Questions and Solutions with Explanations | Commerce

41. If sales is Rs. 8,00,000, cost of sales is Rs. 4,80,000 and indirect expenses is Rs. 1,20,000, then the net profit ratio will be:

Answer & Solution

42. For the purpose of final accounts, stock is normally valued according to:

Answer & Solution

Answer & Solution

44. Total Assets Turnover = 4 Net profit = 10% Total assets = Rs. 50,000 The amount of Net profit would be:

Answer & Solution

45. When Partnership Act was passed?

Answer & Solution

46. Given, Current ratio = Rs. 2.5 Quick ratio = Rs. 2.5 Net working capital = Rs. 30,000 The amount of current liabilities will be

Answer & Solution

47. The expense incurred for increasing the productive capacity of business is called as

Answer & Solution

48. Ashoka Ltd.purchased a machine from Tata & Sons for Rs. 1,50,000. This is

Answer & Solution

49. Permanent working capital is generally financed through

Answer & Solution

50. Arrange the following items in the order of their appearance in the preparation of financial statements. 1. Net profit 2. Gross profit 3. Cash at bank

Answer & Solution

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41.
If sales is Rs. 8,00,000, cost of sales is Rs. 4,80,000 and indirect expenses is Rs. 1,20,000, then the net profit ratio will be:

42.
For the purpose of final accounts, stock is normally valued according to:

44.
Total Assets Turnover = 4
Net profit = 10%
Total assets = Rs. 50,000
The amount of Net profit would be:

45.
When Partnership Act was passed?

46.
Given,
Current ratio = Rs. 2.5
Quick ratio = Rs. 2.5
Net working capital = Rs. 30,000
The amount of current liabilities will be

47.
The expense incurred for increasing the productive capacity of business is called as

48.
Ashoka Ltd.purchased a machine from Tata & Sons for Rs. 1,50,000. This is

49.
Permanent working capital is generally financed through

50.
Arrange the following items in the order of their appearance in the preparation of financial statements.
1. Net profit
2. Gross profit
3. Cash at bank