Accounting MCQ Questions and Solutions with Explanations

Section 1 Section 2 Section 3 Section 4 Section 5 Section 6

1.
Which of the following is true when a debtor pays his dues?

A. The asset side of the balance sheet will decrease

B. The asset side of the balance sheet will increase

C. The liability side of the balance sheet will increase

D. There is no change in total assets or total liabilities

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2.
Which of the following ratios indicate the short-term liquidity of a business?

A. Inventory turnover ratio

B. Debt equity ratio

C. Acid test ratio

D. Proprietary ratio

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3.
The maximum amount beyond which a company is not allowed to raise funds by issue of shares is

A. Issued capital

B. Reserve capital

C. Nominal capital

D. Subscribed capital

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4.
Based on which of the following concepts, is share capital account shown on the liability side of a balance sheet?

A. Business entity concept

B. Money measurement concept

C. Cost concept

D. Going concern concept

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5.
Which of the following is not considered as Research & Development costs?

A. Testing in search for product alternatives

B. Legal work on patent application

C. Modification of design of a process

D. Searching for application of new research findings

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Accounting MCQ Questions and Solutions with Explanations | Commerce

1. Which of the following is true when a debtor pays his dues?

Answer & Solution

2. Which of the following ratios indicate the short-term liquidity of a business?

Answer & Solution

3. The maximum amount beyond which a company is not allowed to raise funds by issue of shares is

Answer & Solution

4. Based on which of the following concepts, is share capital account shown on the liability side of a balance sheet?

Answer & Solution

5. Which of the following is not considered as Research & Development costs?

Answer & Solution

Read More Section(Accounting)

1.
Which of the following is true when a debtor pays his dues?

2.
Which of the following ratios indicate the short-term liquidity of a business?

3.
The maximum amount beyond which a company is not allowed to raise funds by issue of shares is

4.
Based on which of the following concepts, is share capital account shown on the liability side of a balance sheet?

5.
Which of the following is not considered as Research & Development costs?