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

21.
As per Garner V. Murray Rule, the loss resulting from a partner's insolvency is borne by other partners in

A. equal ratio

B. their capital ratio

C. their profit sharing ratio

D. 3 : 1 ratio

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22.
Alteration of shares of smaller amounts into shares of larger amount is called . . . . . . . . of share capital.

A. surrender

B. subdivision

C. consolidation

D. None of these

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23.
The movement of securities from one stock exchange to another with the object of reaping a profit from the disparity in share prices is called

A. Averaging

B. Arbitraging

C. Back wardation

D. Forward trading

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24.
Trading account is prepared to find out:

A. gross profit or loss

B. net profit or loss

C. financial position

D. position of the partners

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25.
A sale of goods to Vaibhav Deep for cash should be debited to:

A. Vaibhav's A/C

B. Cash A/C

C. Sale of goods A/C

D. None of these

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26.
That part of the capital which will be called up only in the event of winding up of the company is called . . . . . . . . capital.

A. issued

B. paid-up

C. reserve

D. uncalled

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27.
Which of the following errors will cause the trial balance to be out of balance?

A. The total of the Purchase book is Rs. 1000 short

B. Goods received back from Mahesh, Rs. 250 have not been entered in the Returns Inward book

C. Office furniture purchased from Ravi and Co. Rs. 950 has been entered in the Purchase book

D. A purchase of Rs. 251 from Gopal and Co. has been entered in the Purchase book as Rs. 215

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28.
A Purchases returns of Rs. 200 to Mr. P if entered in the sales book would affect:

A. P's account

B. purchases returns account

C. sales account

D. purchases returns account and sales account

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29.
The balance of cash account indicates . . . . . . . .

A. net income for the period

B. net loss for the period

C. net worth of the business

D. net cash on hand

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30.
Wages is an example of:

A. capital expenses

B. indirect expenses

C. direct expenses

D. revenue expenses

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Accounting MCQ Questions and Solutions with Explanations | Commerce

21. As per Garner V. Murray Rule, the loss resulting from a partner's insolvency is borne by other partners in

Answer & Solution

22. Alteration of shares of smaller amounts into shares of larger amount is called . . . . . . . . of share capital.

Answer & Solution

23. The movement of securities from one stock exchange to another with the object of reaping a profit from the disparity in share prices is called

Answer & Solution

24. Trading account is prepared to find out:

Answer & Solution

25. A sale of goods to Vaibhav Deep for cash should be debited to:

Answer & Solution

26. That part of the capital which will be called up only in the event of winding up of the company is called . . . . . . . . capital.

Answer & Solution

27. Which of the following errors will cause the trial balance to be out of balance?

Answer & Solution

28. A Purchases returns of Rs. 200 to Mr. P if entered in the sales book would affect:

Answer & Solution

29. The balance of cash account indicates . . . . . . . .

Answer & Solution

30. Wages is an example of:

Answer & Solution

Read More Section(Accounting)

21.
As per Garner V. Murray Rule, the loss resulting from a partner's insolvency is borne by other partners in

22.
Alteration of shares of smaller amounts into shares of larger amount is called . . . . . . . . of share capital.

23.
The movement of securities from one stock exchange to another with the object of reaping a profit from the disparity in share prices is called

24.
Trading account is prepared to find out:

25.
A sale of goods to Vaibhav Deep for cash should be debited to:

26.
That part of the capital which will be called up only in the event of winding up of the company is called . . . . . . . . capital.

27.
Which of the following errors will cause the trial balance to be out of balance?

28.
A Purchases returns of Rs. 200 to Mr. P if entered in the sales book would affect:

29.
The balance of cash account indicates . . . . . . . .

30.
Wages is an example of: