Accounting MCQ Questions and Solutions with Explanations

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71.
Which of the following statement is/are true?
1. Tax shield on depreciation and interest is an important variable both for the lessor and the lessee.
2. Lease transactions in India are governed by the lease act.
3. A lessee should evaluate the lease options against the buying option.
4. As per AS-19, financial lease is shown in the balance sheet of the lessee as an asset.

A. Both 1 and 4

B. 1, 3 and 4

C. 2, 3 and 4

D. Only 2

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72.
When all the debentures are redeemed, the balance left in the Debenture Sinking Fund Account is transferred to

A. Debentures account

B. Sinking Fund Investment Account

C. Capital Redemption Reserve Account

D. General Reserve Account

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73.
In what order following items should be shown in company's balance sheet?
i. Goodwill
ii. Investment
iii. Creditors
iv. Preliminary expenses
Choose answer from one of the options

A. ii, iii, iv, i

B. i, ii, iii, iv

C. i, ii, iv, iii

D. I, iii, iv, ii

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74.
"Make sufficient provisions for future losses, but do not anticipate future profits." The statement is in accordance to the concept of

A. Matching

B. Objectivity

C. Conservatism

D. Materiality

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75.
Which account will be debited with the nominal value of shares, when shares are issued to promoters for the service offered by them?

A. Preliminary expenses

B. Assets

C. Goodwill

D. Share capital

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76.
Whom of the following is paid at last on the dissolution of a company?

A. Reserve creditor

B. Equity shareholder

C. Preference shareholder

D. Debenture holder

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77.
Functions of managerial accounting and cost accounting interacting with each other-

A. Complementary nature

B. Antagonistic in nature

C. Neutral form of influence

D. Statutory

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78.
Liquidity ratios are used:

A. To assess the financial position of a firm at a point of time

B. To evaluate the performance of a firm over a period of time

C. To judge a firm's ability to meet short-term obligations

D. To assess the present and expected earnings of a firm

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79.
A, B, Co. Ltd. forfeited 20 shares of Rs. 10 each, Rs. 7 called up on which C had paid application and allotment money of Rs. 5 per share. Of these, 15 shares were reissued to D @Rs. 6 per share as fully paid-up for Capital Reserve account would be:

A. Rs. 15

B. Rs. 20

C. Rs. 75

D. Rs. 100

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80.
Secret reserves may result by:

A. creating general reserve

B. providing excessive depreciation

C. overvaluing of stocks

D. undervaluation of liabilities

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Accounting MCQ Questions and Solutions with Explanations | Commerce

Answer & Solution

72. When all the debentures are redeemed, the balance left in the Debenture Sinking Fund Account is transferred to

Answer & Solution

73. In what order following items should be shown in company's balance sheet? i. Goodwill ii. Investment iii. Creditors iv. Preliminary expenses Choose answer from one of the options

Answer & Solution

74. "Make sufficient provisions for future losses, but do not anticipate future profits." The statement is in accordance to the concept of

Answer & Solution

75. Which account will be debited with the nominal value of shares, when shares are issued to promoters for the service offered by them?

Answer & Solution

76. Whom of the following is paid at last on the dissolution of a company?

Answer & Solution

77. Functions of managerial accounting and cost accounting interacting with each other-

Answer & Solution

78. Liquidity ratios are used:

Answer & Solution

79. A, B, Co. Ltd. forfeited 20 shares of Rs. 10 each, Rs. 7 called up on which C had paid application and allotment money of Rs. 5 per share. Of these, 15 shares were reissued to D @Rs. 6 per share as fully paid-up for Capital Reserve account would be:

Answer & Solution

80. Secret reserves may result by:

Answer & Solution

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72.
When all the debentures are redeemed, the balance left in the Debenture Sinking Fund Account is transferred to

73.
In what order following items should be shown in company's balance sheet?
i. Goodwill
ii. Investment
iii. Creditors
iv. Preliminary expenses
Choose answer from one of the options

74.
"Make sufficient provisions for future losses, but do not anticipate future profits." The statement is in accordance to the concept of

75.
Which account will be debited with the nominal value of shares, when shares are issued to promoters for the service offered by them?

76.
Whom of the following is paid at last on the dissolution of a company?

77.
Functions of managerial accounting and cost accounting interacting with each other-

78.
Liquidity ratios are used:

79.
A, B, Co. Ltd. forfeited 20 shares of Rs. 10 each, Rs. 7 called up on which C had paid application and allotment money of Rs. 5 per share. Of these, 15 shares were reissued to D @Rs. 6 per share as fully paid-up for Capital Reserve account would be:

80.
Secret reserves may result by: