Accounting MCQ Questions and Solutions with Explanations

Accounting MCQ Questions and Solutions with Explanations | Commerce

Accounting MCQ Questions and answers with easy and logical explanations. Commerce provides you all type of quantitative and competitive aptitude mcq questions with easy and logical explanations. Accounting MCQ is important for exams like B.COM, M.COM, BBA, BBM, CA, CS, CMA, CPA, CFA, UPSC, NET, Banking and other commerce department exam. Page-1 section-7

Govind, Hari and Pratap are partners. On the retirement of Govind, the goodwill already appears in the balance sheet at Rs. 24,000. The goodwill will be written off by

A) Debiting all partner's capital accounts in their old profit-sharing ratio B) Debiting remaining partner's capital accounts in their new profit-sharing ratio C) Debiting retiring partner's capital accounts from his share of goodwill D) None of the above

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Answer & Solution

Answer: Option A

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A, B and C are partners sharing profits in the ratio of 3 : 2 : 1. C retires, and his capital after making adjustments for reserves and profits on revaluation is Rs. 2,30,000. A and B agree to pay him Rs. 50,000 in full and final settlement of his claims. The amount of goodwill be

A) Rs. 50,000 B) Rs. 2,00,000 C) Rs. 20,000 D) Rs. 1,00,000

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Answer: Option C

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Minority interest includes

A) share in share capital B) share in capital profit C) share in revenue profit D) all of the above

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Answer: Option D

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Premium earned on issue of Shares' is an example of

A) Capital expenditure B) Revenue receipt C) Deferred revenue expenditure D) None of these

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Answer: Option D

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Under CCA method, surplus or deficit due to change in value of assets and adjustment in profit and loss statement should be adjusted to

A) General Reserve A/c B) Profit and Loss statement C) Revaluation Reserve A/c D) None of the above

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Answer: Option C

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Accounting Standard-6 is meant for

A) Accounting for Fixed Assets B) Accounting treatment for goodwill C) Depreciation Accounting D) Disclosure of Accounting policies

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Answer: Option C

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Revenue from sale of products ordinarily is reported as part of earning in the period in which:

A) the sale is made B) the cash is collected C) the order is received D) the cheque is received

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Answer: Option A

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Which of the following can not be used for redemption of preference shares?

A) Insurance Fund B) Workmen's Compensation Fund C) General Reserve D) Profit Prior to Incorporation

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Answer: Option D

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Donations received by a charitable institution for some specific purpose are taken to:

A) Assets side of Balance Sheet B) Liabilities side of Balance Sheet C) Income side of Income and Expenditure Account D) Expenditure side of Income and Expenditure Account

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Answer: Option B

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If current ratio is 2.5, quick ratio 1.5 and net working capital Rs. 15,000. The value of inventory will be:

A) Rs. 10,000 B) Rs. 15,000 C) Rs. 37,500 D) Rs. 52,500

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Answer: Option A

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