Accounting MCQ Questions and Solutions with Explanations

Accounting MCQ Questions and Solutions with Explanations | Commerce

Accounting MCQ Questions and answers with easy and logical explanations. Commerce provides you all type of quantitative and competitive aptitude mcq questions with easy and logical explanations. Accounting MCQ is important for exams like B.COM, M.COM, BBA, BBM, CA, CS, CMA, CPA, CFA, UPSC, NET, Banking and other commerce department exam. Page-1 section-28

While preparing the transferee company's financial statement under amalgamation in the nature of purchase, the assets and liabilities taken over from the transferor company should be incorporated at . . . . . . . .

A) cost B) book value C) revised value D) None of these

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Answer & Solution

Answer: Option C

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Unclaimed dividend is shown on the liability side of the balance sheet of a company as . . . . . . . .

A) Share capital B) Current liabilities C) Reserves & Surplus D) Non-current liability

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Answer & Solution

Answer: Option B

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The closing debit balance in the receipts and payments account indicates the . . . . . . . . balance at the end of the year.

A) Opening B) Closing C) Trading D) Cash

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Answer & Solution

Answer: Option D

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A second hand machinery was purchased for Rs. 1,00,000 five years ago and was overhauled by carrying out some current repairs at a cost of Rs. 10,000. It has also an accumulated depreciation of Rs. 50,000. It has been disposed of in the beginning of the sixth year for Rs. 60,000. Profit/loss on such disposal shall be

A) Profit of Rs. 10,000 B) Loss of Rs. 50,000 C) Loss of Rs. 40,000 D) No profit, no loss

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Answer & Solution

Answer: Option D

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When own debentures are cancelled any profit on cancellation is transferred to . . . . . . . .

A) general reserve B) capital reserve C) P/L Account D) None of these

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Answer & Solution

Answer: Option B

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Sales to Shyam of Rs. 500 not recorded in the books would affect:

A) Shyam's account B) Purchase account C) Sales account D) Cash account

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Answer & Solution

Answer: Option C

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Match List-I with List-II and select the correct answer using the options given below the lists:

List-I	List-II
a. Financial leverage	1. Efficiency
b. Quick ratio	2. Profitability
c. Stock turnover	3. Liquidity
d. Margin on sales	4. Risk

A) a-4, b-3, c-1, d-2 B) a-1, b-2, c-4, d-3 C) a-4, b-2, c-1, d-3 D) a-1, b-3, c-4, d-2

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Answer & Solution

Answer: Option A

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Voluntary return of shares by shareholders to the company for cancellation is called:

A) transfer of shares B) forfeiture of shares C) surrender of shares D) buyback of shares

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Answer & Solution

Answer: Option C

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Internal reconstruction can be done by . . . . . . . .

A) alteration of share capital B) reduction of share capital C) issue of share capital D) All of these

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Answer & Solution

Answer: Option D

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Match List-I with List-II and select the correct answer using the options given below the lists:

List-I	List-II
a. Receipts and payments account	1. Revenue
b. Income and expenditure account	2. Cash
c. Dividend equalization reserve	3. Liability
d. Subscription received in advance account	4. General reserve

A) a-2, b-1, c-4, d-3 B) a-3, b-4, c-1, d-2 C) a-2, b-4, c-1, d-3 D) a-3, b-1, c-4, d-2

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Answer & Solution

Answer: Option A

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