Accounting MCQ Questions and Solutions with Explanations

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71.
A machinery having a residual value of Rs. 5,000 was purchased on 1^st January 1998 for Rs. 1,00,000 and was depreciated @ 9.5% on a straight line method. On 1^st January 1998, it was estimated that its useful life has been reduced to eight years. Under the changed circum-stances, the annual depreciation charges for the year 1991 and onwards will be:

A. Rs. 11,875

B. Rs. 13,300

C. Rs. 9,500

D. Rs. 12,500

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72.
An accountant is mainly concerned with:

A. Audit work

B. Preparation of budget for his employees

C. Management Constancy Services

D. Filling tax returns

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73.
Given, subscription received in 1990:
For the year 1989 - Rs. 500
For the year 1990 - Rs. 7,000
For the year 1991 - Rs. 400
1990 - subscription outstanding on 31^st December 1990 : Rs. 250
The amount of subscription to be posted to income and expenditure account of 1990 is:

A. Rs. 7,000

B. Rs. 7,250

C. Rs. 7,900

D. Rs. 8,150

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74.
Long-term liabilities are:

A. Fixed assets minus current assets

B. Fixed assets minus current liabilities

C. Current assets plus current liabilities

D. Total liabilities minus current liabilities

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75.
A company purchased the following assets and paid through 1,00,000 fully paid equity shares of Rs. 10 at a premium of Rs. 2:
Building = Rs. 5,00,000
Machinery = Rs. 4,00,000
Stock in trade = Rs. 1,00,000
In the context of funds flow statement, this transaction will result in:

A. Funds in flow of Rs. 10,00,000

B. Funds in flow of Rs. 12,00,000

C. Funds in flow of Rs. 1,00,000

D. Funds in flow of Rs. 9,00,000

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76.
Sales to Ram Rs. 336 posted to his account as Rs. 363 would effect:

A. sales account

B. Ram's account

C. cash account

D. bank account

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77.
Depreciation is:

A. A source of fund

B. A use of fund

C. Neither a source nor a use of fund

D. Partly a source and partly an application of fund

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78.
The receipts and payments account begins with . . . . . . . .

A. debit balance

B. credit balance

C. no balance

D. normal balance

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79.
Which of the following reserve does not appear in the balance sheet of a company?

A. secret reserve

B. general reserve

C. capital reserve

D. specific reserve

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80.
Quantitative transactions are not recorded in accounts due to:

A. dual concept

B. accrual concept

C. money measurement concept

D. none of these

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Accounting MCQ Questions and Solutions with Explanations | Commerce

Answer & Solution

72. An accountant is mainly concerned with:

Answer & Solution

73. Given, subscription received in 1990: For the year 1989 - Rs. 500 For the year 1990 - Rs. 7,000 For the year 1991 - Rs. 400 1990 - subscription outstanding on 31st December 1990 : Rs. 250 The amount of subscription to be posted to income and expenditure account of 1990 is:

Answer & Solution

74. Long-term liabilities are:

Answer & Solution

75. A company purchased the following assets and paid through 1,00,000 fully paid equity shares of Rs. 10 at a premium of Rs. 2: Building = Rs. 5,00,000 Machinery = Rs. 4,00,000 Stock in trade = Rs. 1,00,000 In the context of funds flow statement, this transaction will result in:

Answer & Solution

76. Sales to Ram Rs. 336 posted to his account as Rs. 363 would effect:

Answer & Solution

77. Depreciation is:

Answer & Solution

78. The receipts and payments account begins with . . . . . . . .

Answer & Solution

79. Which of the following reserve does not appear in the balance sheet of a company?

Answer & Solution

80. Quantitative transactions are not recorded in accounts due to:

Answer & Solution

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72.
An accountant is mainly concerned with:

73.
Given, subscription received in 1990:
For the year 1989 - Rs. 500
For the year 1990 - Rs. 7,000
For the year 1991 - Rs. 400
1990 - subscription outstanding on 31^st December 1990 : Rs. 250
The amount of subscription to be posted to income and expenditure account of 1990 is:

74.
Long-term liabilities are:

75.
A company purchased the following assets and paid through 1,00,000 fully paid equity shares of Rs. 10 at a premium of Rs. 2:
Building = Rs. 5,00,000
Machinery = Rs. 4,00,000
Stock in trade = Rs. 1,00,000
In the context of funds flow statement, this transaction will result in:

76.
Sales to Ram Rs. 336 posted to his account as Rs. 363 would effect:

77.
Depreciation is:

78.
The receipts and payments account begins with . . . . . . . .

79.
Which of the following reserve does not appear in the balance sheet of a company?

80.
Quantitative transactions are not recorded in accounts due to: