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

11.
Revenue is generally recognised as being earned at the point of time, when:

A. Sale is effected

B. Profit and loss account is prepared

C. Production is completed

D. Cash is received

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12.
The cost of a machine having a span of life 5 years is Rs. 10,000. It has a scrap value of Rs. 1,000. The amount of depreciation in the first year under the sum of year's digit method will be:

A. Rs. 1,600

B. Rs. 1,800

C. Rs. 2,500

D. Rs. 3,000

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13.
Depreciation on fixed assets is:
OR
Depreciation is:

A. A source of funds

B. An application of funds

C. Neither a source nor an application of funds

D. Both A and B

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14.
. . . . . . . . rule is applicable at the time of any partner becoming insolvent.

A. Garner vs Murray

B. Derry vs Peek

C. Salomon vs A Salomon and Corporation Limited

D. Mohiri Bibi vs Dharamdas Ghosh

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15.
X and Y are partners in a firm. X is entitled to a salary of Rs. 2,000 per month together with a commission of 10% of net profit before chargin any commission. Y is entitled to a salary of Rs. 5000 per annum together with a commission of 10% of net profit after charging all commissions. Net profit before charging any commission for the year was Rs. 55,000. What will be the net profits to be distributed to X and Y respectively?

A. Rs. 20,000 and Rs. 2,30,000

B. Rs. 2,15,000 and Rs. 23,500

C. Rs. 22,000 and Rs. 22,500

D. Rs. 22,350 and Rs. 22,450

E. Rs. 22,500 and Rs. 22,500

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16.
The quick ratio is 1.5 : 1 and the quick assets is Rs. 30,000. The quick liability will be

A. Rs. 20,000

B. Rs. 50,000

C. Rs. 45,000

D. Rs. 30,000

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17.
Current Cost Accounting method attempted to match the current incomeagainst which cost?

A. Past cost

B. Current cost

C. General cost

D. Individual cost

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18.
The adjusted net profit of a business is Rs. 2,00,000 and the amount of capital employed is Rs. 12,50,000. If goodwill is to be calculated on basis of 3 year purchase of super profit and the normal rate of return is 10% then the value of goodwill will be

A. Rs. 20,00,00

B. Rs. 22,50,00

C. Rs. 25,00,00

D. Rs. 30,00,00

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19.
Which type of share hold only one right and that of a fixed rate of dividend

A. Cumulative

B. Non-cumulative

C. Participating

D. Non-participating

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20.
A and B were Sharing Profit of a business in the ratio of 3 : 2. They admit C into partnership, who gets $$\frac{1}{3}$$ of the share of profit from A, $$\frac{1}{2}$$ of the share of profit from B. What will be the new profit sharing ratio now:

A. 3 : 2 : 5

B. 2 : 1 : 2

C. 3 : 2 : 1

D. 3 : 2 : 2

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Accounting MCQ Questions and Solutions with Explanations | Commerce

11. Revenue is generally recognised as being earned at the point of time, when:

Answer & Solution

12. The cost of a machine having a span of life 5 years is Rs. 10,000. It has a scrap value of Rs. 1,000. The amount of depreciation in the first year under the sum of year's digit method will be:

Answer & Solution

13. Depreciation on fixed assets is: OR Depreciation is:

Answer & Solution

14. . . . . . . . . rule is applicable at the time of any partner becoming insolvent.

Answer & Solution

Answer & Solution

16. The quick ratio is 1.5 : 1 and the quick assets is Rs. 30,000. The quick liability will be

Answer & Solution

17. Current Cost Accounting method attempted to match the current incomeagainst which cost?

Answer & Solution

18. The adjusted net profit of a business is Rs. 2,00,000 and the amount of capital employed is Rs. 12,50,000. If goodwill is to be calculated on basis of 3 year purchase of super profit and the normal rate of return is 10% then the value of goodwill will be

Answer & Solution

19. Which type of share hold only one right and that of a fixed rate of dividend

Answer & Solution

20. A and B were Sharing Profit of a business in the ratio of 3 : 2. They admit C into partnership, who gets $$\frac{1}{3}$$ of the share of profit from A, $$\frac{1}{2}$$ of the share of profit from B. What will be the new profit sharing ratio now:

Answer & Solution

Read More Section(Accounting)

11.
Revenue is generally recognised as being earned at the point of time, when:

12.
The cost of a machine having a span of life 5 years is Rs. 10,000. It has a scrap value of Rs. 1,000. The amount of depreciation in the first year under the sum of year's digit method will be:

13.
Depreciation on fixed assets is:
OR
Depreciation is:

14.
. . . . . . . . rule is applicable at the time of any partner becoming insolvent.

16.
The quick ratio is 1.5 : 1 and the quick assets is Rs. 30,000. The quick liability will be

17.
Current Cost Accounting method attempted to match the current incomeagainst which cost?

18.
The adjusted net profit of a business is Rs. 2,00,000 and the amount of capital employed is Rs. 12,50,000. If goodwill is to be calculated on basis of 3 year purchase of super profit and the normal rate of return is 10% then the value of goodwill will be

19.
Which type of share hold only one right and that of a fixed rate of dividend

20.
A and B were Sharing Profit of a business in the ratio of 3 : 2. They admit C into partnership, who gets $$\frac{1}{3}$$ of the share of profit from A, $$\frac{1}{2}$$ of the share of profit from B. What will be the new profit sharing ratio now: