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

1.
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

Answer & Solution Discuss in Board Save for Later

2.
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

Answer & Solution Discuss in Board Save for Later

3.
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

Answer & Solution Discuss in Board Save for Later

4.
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

Answer & Solution Discuss in Board Save for Later

5.
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

Answer & Solution Discuss in Board Save for Later

6.
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

Answer & Solution Discuss in Board Save for Later

7.
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

Answer & Solution Discuss in Board Save for Later

8.
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

Answer & Solution Discuss in Board Save for Later

9.
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

Answer & Solution Discuss in Board Save for Later

10.
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

Answer & Solution Discuss in Board Save for Later

1 2 3 4 5 6 7 8 9 10

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

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

Accounting MCQ Questions and Solutions with Explanations | Commerce

1. 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 . . . . . . . .

Answer & Solution

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

Answer & Solution

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

Answer & Solution

Answer & Solution

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

Answer & Solution

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

Answer & Solution

7. 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

Answer & Solution

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

Answer & Solution

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

Answer & Solution

Answer & Solution

Read More Section(Accounting)

1.
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 . . . . . . . .

2.
Unclaimed dividend is shown on the liability side of the balance sheet of a company as . . . . . . . .

3.
The closing debit balance in the receipts and payments account indicates the . . . . . . . . balance at the end of the year.

5.
When own debentures are cancelled any profit on cancellation is transferred to . . . . . . . .

6.
Sales to Shyam of Rs. 500 not recorded in the books would affect:

7.
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

8.
Voluntary return of shares by shareholders to the company for cancellation is called:

9.
Internal reconstruction can be done by . . . . . . . .