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

11.
In case of debit balance, the words _____ are written on the debit side

A. To Balance b/d

B. To Balance c/d

C. By Balance c/d

D. By Balance b/d

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12.
Bank pass book is also known as

A. Bank book

B. Bank account

C. Bank column

D. Bank statement

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13.
Ram and Shyam are partners in a firm with capital of Rs. 4,80,000 and Rs. 3,10,000, respectively. They admitted Ganesh as a partner with $${\frac{1}{4}^{{\text{th}}}}$$ share of profit. Ganesh brings Rs. 3,00,000 as his capital. Ganesh's share of goodwill will be

A. Rs. 1,00,000

B. Rs. 27,500

C. Rs. 17,500

D. Rs. 70,000

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14.
Match the items of List-I with those of the List-II and indicate the correct answer:

List-I List-II

a. Debtors Turnover Ratio 1. Solvency Ratio

b. Proprietary Ratio 2. Liquidity Ratio

c. Operating Ratio 3. Activity Ratio

d. Acid Test Ratio 4. Profitability Ratio

A. a-2, b-4, c-3, d-1

B. a-3, b-2, c-1, d-4

C. a-3, b-1, c-4, d-2

D. a-4, b-3, c-2, d-1

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15.
Ledger is an accounting book in which

A. Only Real Accounts are opened

B. Only Real and Personal Accounts are opened

C. All the Real, Personal and Nominal Accounts are opened

D. Only Trading and Profit and Loss Accounts are opened

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16.
The user group of accounting information is:

A. Owners of the business

B. Managers of the business

C. Potential investors of the business

D. All the above

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17.
In case of 'installment payment system', total interest receivable by the seller is credited to

A. Interest Suspense Account

B. Interest Account

C. Sales Account

D. None of the above

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18.
Which of the following is not an accounting equation?

A. Assets = Liabilities + Capital

B. Assets = Liabilities - Capital

C. Liabilities = Assets - Capital

D. Assets - Liabilities = Capital

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19.
The study of the effects of output volume on revenue, expenses and net income is known as

A. Budgeting

B. Cash Flow

C. Cost Flow

D. Cost Volume Profit Analysis

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20.
Which one of the following statements is not correct?

A. As per AS-26 only purchased goodwill to be recorded in the books of accounts

B. Self generated goodwill will have to be adjusted through partners Capital Accounts

C. Goodwill is an intangible asset

D. Goodwill is a fictitious asset

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1 2 3 4 5 6 7 8 9 10

List-I	List-II
a. Debtors Turnover Ratio	1. Solvency Ratio
b. Proprietary Ratio	2. Liquidity Ratio
c. Operating Ratio	3. Activity Ratio
d. Acid Test Ratio	4. Profitability Ratio

Accounting MCQ Questions and Solutions with Explanations | Commerce

11. In case of debit balance, the words _____ are written on the debit side

Answer & Solution

12. Bank pass book is also known as

Answer & Solution

13. Ram and Shyam are partners in a firm with capital of Rs. 4,80,000 and Rs. 3,10,000, respectively. They admitted Ganesh as a partner with $${\frac{1}{4}^{{\text{th}}}}$$ share of profit. Ganesh brings Rs. 3,00,000 as his capital. Ganesh's share of goodwill will be

Answer & Solution

14. Match the items of List-I with those of the List-II and indicate the correct answer: List-I List-II a. Debtors Turnover Ratio 1. Solvency Ratio b. Proprietary Ratio 2. Liquidity Ratio c. Operating Ratio 3. Activity Ratio d. Acid Test Ratio 4. Profitability Ratio

Answer & Solution

15. Ledger is an accounting book in which

Answer & Solution

16. The user group of accounting information is:

Answer & Solution

17. In case of 'installment payment system', total interest receivable by the seller is credited to

Answer & Solution

18. Which of the following is not an accounting equation?

Answer & Solution

19. The study of the effects of output volume on revenue, expenses and net income is known as

Answer & Solution

20. Which one of the following statements is not correct?

Answer & Solution

Read More Section(Accounting)

11.
In case of debit balance, the words _____ are written on the debit side

12.
Bank pass book is also known as

13.
Ram and Shyam are partners in a firm with capital of Rs. 4,80,000 and Rs. 3,10,000, respectively. They admitted Ganesh as a partner with $${\frac{1}{4}^{{\text{th}}}}$$ share of profit. Ganesh brings Rs. 3,00,000 as his capital. Ganesh's share of goodwill will be

14.
Match the items of List-I with those of the List-II and indicate the correct answer:

List-I List-II

a. Debtors Turnover Ratio 1. Solvency Ratio

b. Proprietary Ratio 2. Liquidity Ratio

c. Operating Ratio 3. Activity Ratio

d. Acid Test Ratio 4. Profitability Ratio

15.
Ledger is an accounting book in which

16.
The user group of accounting information is:

17.
In case of 'installment payment system', total interest receivable by the seller is credited to

18.
Which of the following is not an accounting equation?

19.
The study of the effects of output volume on revenue, expenses and net income is known as

20.
Which one of the following statements is not correct?