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-29

Call option is:

A) a contract to buy a certain number of shares at a stated price within a specified period of time B) a contract to sell a certain number of shares at a stated price within a specified period of time C) the option of the issuing company to demand the shareholders to pay for the partly paid shares D) the option available to the convertible debenture holders to demand equity shares in conversion of debentures

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Answer & Solution

Answer: Option A

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In a partnership business if there is no specific agreement among partners, profit is distributed in the:

A) ratio of capital contributions B) ratio of time spent in the business C) ratio to be decided by the court D) equal ratio

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Answer & Solution

Answer: Option D

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Assets in the balance sheet are shown at cost less depreciation rather than their replacement cost because of the accounting convention . . . . . . . .

A) going concern B) matching C) realization D) money measurement

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Answer & Solution

Answer: Option A

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Following data appear in the books of XY & Co. as on 31^st March 2003
Capital account = Rs. 13,00,000
Drawings account = Rs. 12,000
Land & building account = Rs. 10,00,000
Goodwill account = Rs. 3,50,000
Suspense account (Dr) = Rs. 50,000
Loss by theft account = Rs. 20,000
Business loss = Rs. 50,000
Loan given to AB & Co = Rs. 60,000
What will be the amount of sundry creditors?

A) Rs. 2,30,000 B) Rs. 1,72,000 C) Rs. 3,42,000 D) Rs. 2,42,000

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Answer & Solution

Answer: Option D

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Bills receivable endorsed are debited to:

A) Debtor's Account B) Creditor's Account C) Bills payable Account D) Bills receivable Account

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Answer & Solution

Answer: Option B

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If the total charge of depreciation and maintenance is considered as the method which would provide a unifrom charge is:

A) annuity method B) straight line method C) diminishing balance method D) insurance policy method

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Answer & Solution

Answer: Option B

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Which of the following a/c is debited when statutory reserve of the transferor company is taken over by the transferee company?

A) Goodwill a/c B) Amalgamation adjustment a/c C) Capital reserve a/c D) Statutory reserve

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Answer & Solution

Answer: Option B

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Which one of the following is not taken into account in adjusting the cash balance?

A) Mistakes in the cash book B) Mistakes in the pass book C) Bank charges debited in pass book D) Interest and dividend credited in pass book

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Answer & Solution

Answer: Option B

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Base date is otherwise called as . . . . . . . .

A) zero date B) leave date C) working days D) grace days

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Answer & Solution

Answer: Option A

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. . . . . . . . days of grace are allowed in case of time bills for calculation date of maturity.

A) Five B) Seven C) Three D) Two

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Answer & Solution

Answer: Option C

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