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.
When investment in private debentures is cancelled then this profit/loss is credited/ debited to

A. Debenture Redemption fund A/c

B. General reserve A/c

C. Capital reserve A/c

D. Any of the above A/c

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42.
Concept of conservation refers to taking into account:

A. All profit

B. Only cash profit

C. Only profit realized

D. Profit realized and all possible losses

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43.
The premium received on issue of Shares cannot be used for

A. Issue of fully paid bonus shares to the members of the company

B. Writing off discount allowed on issue of debendtures of the company

C. Paying remuneration to promoters for their services

D. Paying premium payable on the redemption of debentures of the company

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44.
Underwriting commission is classified as

A. Capital Expenditure

B. Capital loss

C. Deferred Revenue Expenditure

D. Capitalized Expenditure

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45.
Income tax deducted from interest paid on debenture is shown in

A. Asset side of balance sheet

B. Liabilities side of balance sheet

C. Credit side of profit and loss account

D. Debit side of profit and loss account

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46.
Assertion (A) When a company earns profit prior to its incorporation, it is called capital profit.
Reason (R) Capital profit cannot be used for distribution as dividend to the shareholders.

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

B. Both (A) and (R) are false

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

D. Both (A) and (R) are true

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47.
Environmental management accounting focuses on

A. natural resources stock

B. environmental cost information

C. environmental liability costs

D. none of the above

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48.
A limited company forfeited 100 shares of Rs. 10 each fully called up on which Rs. 4 per share was paid up. The company reissued 50 shares at the rate of Rs. 8 each. The amount transferred to Capital Reserve will be

A. Rs. 500

B. Rs. 200

C. Rs. 250

D. Rs. 100

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49.
Premium on issue of shares can be used for:

A. Issue of bonus shares

B. Payment of dividends

C. Payment of operating expenses

D. Redemption of debentures

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50.
Which of the following is not a book of primary entry?

A. Ledger

B. Cash book

C. Sales book

D. Bills payable book

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Accounting MCQ Questions and Solutions with Explanations | Commerce

41. When investment in private debentures is cancelled then this profit/loss is credited/ debited to

Answer & Solution

42. Concept of conservation refers to taking into account:

Answer & Solution

43. The premium received on issue of Shares cannot be used for

Answer & Solution

44. Underwriting commission is classified as

Answer & Solution

45. Income tax deducted from interest paid on debenture is shown in

Answer & Solution

46. Assertion (A) When a company earns profit prior to its incorporation, it is called capital profit. Reason (R) Capital profit cannot be used for distribution as dividend to the shareholders.

Answer & Solution

47. Environmental management accounting focuses on

Answer & Solution

48. A limited company forfeited 100 shares of Rs. 10 each fully called up on which Rs. 4 per share was paid up. The company reissued 50 shares at the rate of Rs. 8 each. The amount transferred to Capital Reserve will be

Answer & Solution

49. Premium on issue of shares can be used for:

Answer & Solution

50. Which of the following is not a book of primary entry?

Answer & Solution

Read More Section(Accounting)

41.
When investment in private debentures is cancelled then this profit/loss is credited/ debited to

42.
Concept of conservation refers to taking into account:

43.
The premium received on issue of Shares cannot be used for

44.
Underwriting commission is classified as

45.
Income tax deducted from interest paid on debenture is shown in

46.
Assertion (A) When a company earns profit prior to its incorporation, it is called capital profit.
Reason (R) Capital profit cannot be used for distribution as dividend to the shareholders.

47.
Environmental management accounting focuses on

48.
A limited company forfeited 100 shares of Rs. 10 each fully called up on which Rs. 4 per share was paid up. The company reissued 50 shares at the rate of Rs. 8 each. The amount transferred to Capital Reserve will be

49.
Premium on issue of shares can be used for:

50.
Which of the following is not a book of primary entry?