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.
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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2.
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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3.
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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4.
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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5.
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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6.
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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7.
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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8.
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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9.
Base date is otherwise called as . . . . . . . .

A. zero date

B. leave date

C. working days

D. grace days

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10.
. . . . . . . . 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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Accounting MCQ Questions and Solutions with Explanations | Commerce

1. Call option is:

Answer & Solution

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

Answer & Solution

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

Answer & Solution

Answer & Solution

5. Bills receivable endorsed are debited to:

Answer & Solution

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

Answer & Solution

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

Answer & Solution

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

Answer & Solution

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

Answer & Solution

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

Answer & Solution

Read More Section(Accounting)

1.
Call option is:

2.
In a partnership business if there is no specific agreement among partners, profit is distributed in the:

3.
Assets in the balance sheet are shown at cost less depreciation rather than their replacement cost because of the accounting convention . . . . . . . .

5.
Bills receivable endorsed are debited to:

6.
If the total charge of depreciation and maintenance is considered as the method which would provide a unifrom charge is:

7.
Which of the following a/c is debited when statutory reserve of the transferor company is taken over by the transferee company?

8.
Which one of the following is not taken into account in adjusting the cash balance?

9.
Base date is otherwise called as . . . . . . . .

10.
. . . . . . . . days of grace are allowed in case of time bills for calculation date of maturity.