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

31.
Which of the following reports have to be submitted before the company's annual general meeting as per the Companies Act?

A. Director's Report

B. Auditor's Report

C. Statement of Profit and Loss and Balance Sheet

D. All of the above

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32.
Match the following.

List-I List-II

a. Absorption 1. Profit on reissue of shares is to be transferred to . . . . . . . .

b. Accumulated losses and fictitious assets 2. When there are one or more liquidation and no formation, it is known as . . . . . . . .

c. Consolidated revenue profits 3. Internal reconstruction is generally resorted to write off . . . . . . . .

d. Capital reserve 4. The group share of proposed dividends by the subsidiary is added to . . . . . . . .

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

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

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

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

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33.
Under which section of the Companies Act provision has been made for the use of share premium?

A. Section 52

B. Section 65

C. Section 78

D. Section 80

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34.
Profit on revaluation of assets in case of retirement of a partner shall be distributed to capital accounts of:

A. Remaining partners, in their old profit sharing ratio

B. Remaining partners in their new profit sharing ratio

C. All partners, in their profit sharing ratio

D. None of the above

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35.
The amount of depreciation provided in the Sinking Fund Method when compared to Annuity Method is:

A. Higher

B. Lower

C. Equal

D. Unpredictable

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36.
When fixed cost is Rs. 10,000 and the profit volume ratio is 20% then break even point will be

A. Rs. 2,000

B. Rs. 5,000

C. Rs. 50,000

D. Rs. 10,000

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37.
A and B are equal partners. When partnership was dissolved their capitals are Rs. 30,000 and Rs. 40,000 respectively. After all assets are sold and liabilities paid, there is cash balance of Rs. 60,000. The amount of profit or loss on realisation is:

A. Profit of Rs. 10,000

B. Profit of Rs. 20,000

C. Profit of Rs. 30,000

D. Loss of Rs. 10,000

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38.
Pre-acquisition profit in a subsidiary company is considered as

A. Revenue profit

B. Capital profit

C. Goodwill

D. Minority interest

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39.
A journal entry, in which two or more accounts are debited/credited, is known as

A. Double entry

B. Multi entry

C. Additional entry

D. Compound entry

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40.
The stock of stationary on 1^st January 2002 is Rs. 300, payment for stationary during the year is 2002 Rs. 1,080 and stock of stationary on 31^st December 2002 is Rs. 50. What will be the amount shown in income and expenditure account for the year ending 31^st December, 2002?

A. Rs. 1,330

B. Rs. 830

C. Rs. 1,080

D. Rs. 1,380

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1 2 3 4 5 6 7 8 9 10

List-I	List-II
a. Absorption	1. Profit on reissue of shares is to be transferred to . . . . . . . .
b. Accumulated losses and fictitious assets	2. When there are one or more liquidation and no formation, it is known as . . . . . . . .
c. Consolidated revenue profits	3. Internal reconstruction is generally resorted to write off . . . . . . . .
d. Capital reserve	4. The group share of proposed dividends by the subsidiary is added to . . . . . . . .

Accounting MCQ Questions and Solutions with Explanations | Commerce

31. Which of the following reports have to be submitted before the company's annual general meeting as per the Companies Act?

Answer & Solution

Answer & Solution

33. Under which section of the Companies Act provision has been made for the use of share premium?

Answer & Solution

34. Profit on revaluation of assets in case of retirement of a partner shall be distributed to capital accounts of:

Answer & Solution

35. The amount of depreciation provided in the Sinking Fund Method when compared to Annuity Method is:

Answer & Solution

36. When fixed cost is Rs. 10,000 and the profit volume ratio is 20% then break even point will be

Answer & Solution

37. A and B are equal partners. When partnership was dissolved their capitals are Rs. 30,000 and Rs. 40,000 respectively. After all assets are sold and liabilities paid, there is cash balance of Rs. 60,000. The amount of profit or loss on realisation is:

Answer & Solution

38. Pre-acquisition profit in a subsidiary company is considered as

Answer & Solution

39. A journal entry, in which two or more accounts are debited/credited, is known as

Answer & Solution

40. The stock of stationary on 1st January 2002 is Rs. 300, payment for stationary during the year is 2002 Rs. 1,080 and stock of stationary on 31st December 2002 is Rs. 50. What will be the amount shown in income and expenditure account for the year ending 31st December, 2002?

Answer & Solution

Read More Section(Accounting)

31.
Which of the following reports have to be submitted before the company's annual general meeting as per the Companies Act?

33.
Under which section of the Companies Act provision has been made for the use of share premium?

34.
Profit on revaluation of assets in case of retirement of a partner shall be distributed to capital accounts of:

35.
The amount of depreciation provided in the Sinking Fund Method when compared to Annuity Method is:

36.
When fixed cost is Rs. 10,000 and the profit volume ratio is 20% then break even point will be

37.
A and B are equal partners. When partnership was dissolved their capitals are Rs. 30,000 and Rs. 40,000 respectively. After all assets are sold and liabilities paid, there is cash balance of Rs. 60,000. The amount of profit or loss on realisation is:

38.
Pre-acquisition profit in a subsidiary company is considered as

39.
A journal entry, in which two or more accounts are debited/credited, is known as

40.
The stock of stationary on 1^st January 2002 is Rs. 300, payment for stationary during the year is 2002 Rs. 1,080 and stock of stationary on 31^st December 2002 is Rs. 50. What will be the amount shown in income and expenditure account for the year ending 31^st December, 2002?