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

51.
A 'Sale and lease back' arrangement is more suitable for a lessee having

A. liquidity crisis

B. surplus fund

C. high profit

D. no-profit no-loss

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52.
$$\frac{{{\text{Changes in Profit}}}}{{{\text{Changes in Sales}}}} \times 100 =\ .\,.\,.\,.\,.\,.\,.\,.$$

A. Break Even Point

B. P/V Ratio

C. Contribution

D. % increase in sales

E. Margin of Safety

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53.
The nature of 'Commission' received in advance account is

A. Real account

B. Unreal account

C. Personal account

D. None of the above

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54.
X Ltd. forfeited 40 share of Rs. 10 each and on which Rs. 4 per share were paid. If the forfeited share are reissued as Rs. 8 per share paid up, what is the minimum price the company must charge?

A. Rs. 2 per share

B. Rs. 4 per share

C. Rs. 8 per share

D. Rs. 10 per share

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55.
If a share of Rs. 10 Issued at a discount of 10%, on which full amount has been called up, is forfeited for non-payment of final call of Rs. 2, the share capital account should be debited by:

A. Rs. 8

B. Rs. 9

C. Rs. 10

D. Rs. 11

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56.
A prospectus for inviting subscription in shares or debentures can be issued only by

A. Public Company

B. Private Company

C. Both of the above

D. None of the above

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57.
If the face value of share is Rs. 10, earning per share is Rs. 4 and dividend per share is Rs. 2, then dividend payout ratio will be

A. 20%

B. 40%

C. 25%

D. 50%

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58.
Statement I These is no standard method for environmental accounting.
Statement II Environmental accounting is applied to textile industries.
Which of the following is/are correct?

A. Statement I is true, but Statement II is false

B. Statement I is false, but Statement II is true

C. Both statements are true

D. Both statements are false

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59.
A and B are partners sharing profits in the firm in the ratio of 2 : 3. Goodwill appears in the books of firm at Rs. 10,000. C joins the firm for $$\frac{1}{5}$$ share of profits. His share of Goodwill is estimated to be Rs. 15,000. The old partner's account will be credited with Goodwill by

A. Rs. 50,000

B. Rs. 40,000

C. Rs. 75,000

D. Rs. 65,000

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60.
Good worth Rs. 500 have been taken by the proprietor for his personal use, for which no entry has been passed in the books. This is an

A. error of compensation

B. error of principle

C. error of commission

D. error of omission

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Accounting MCQ Questions and Solutions with Explanations | Commerce

51. A 'Sale and lease back' arrangement is more suitable for a lessee having

Answer & Solution

52. $$\frac{{{\text{Changes in Profit}}}}{{{\text{Changes in Sales}}}} \times 100 =\ .\,.\,.\,.\,.\,.\,.\,.$$

Answer & Solution

53. The nature of 'Commission' received in advance account is

Answer & Solution

54. X Ltd. forfeited 40 share of Rs. 10 each and on which Rs. 4 per share were paid. If the forfeited share are reissued as Rs. 8 per share paid up, what is the minimum price the company must charge?

Answer & Solution

55. If a share of Rs. 10 Issued at a discount of 10%, on which full amount has been called up, is forfeited for non-payment of final call of Rs. 2, the share capital account should be debited by:

Answer & Solution

56. A prospectus for inviting subscription in shares or debentures can be issued only by

Answer & Solution

57. If the face value of share is Rs. 10, earning per share is Rs. 4 and dividend per share is Rs. 2, then dividend payout ratio will be

Answer & Solution

58. Statement I These is no standard method for environmental accounting. Statement II Environmental accounting is applied to textile industries. Which of the following is/are correct?

Answer & Solution

59. A and B are partners sharing profits in the firm in the ratio of 2 : 3. Goodwill appears in the books of firm at Rs. 10,000. C joins the firm for $$\frac{1}{5}$$ share of profits. His share of Goodwill is estimated to be Rs. 15,000. The old partner's account will be credited with Goodwill by

Answer & Solution

60. Good worth Rs. 500 have been taken by the proprietor for his personal use, for which no entry has been passed in the books. This is an

Answer & Solution

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51.
A 'Sale and lease back' arrangement is more suitable for a lessee having

52.
$$\frac{{{\text{Changes in Profit}}}}{{{\text{Changes in Sales}}}} \times 100 =\ .\,.\,.\,.\,.\,.\,.\,.$$

53.
The nature of 'Commission' received in advance account is

54.
X Ltd. forfeited 40 share of Rs. 10 each and on which Rs. 4 per share were paid. If the forfeited share are reissued as Rs. 8 per share paid up, what is the minimum price the company must charge?

55.
If a share of Rs. 10 Issued at a discount of 10%, on which full amount has been called up, is forfeited for non-payment of final call of Rs. 2, the share capital account should be debited by:

56.
A prospectus for inviting subscription in shares or debentures can be issued only by

57.
If the face value of share is Rs. 10, earning per share is Rs. 4 and dividend per share is Rs. 2, then dividend payout ratio will be

58.
Statement I These is no standard method for environmental accounting.
Statement II Environmental accounting is applied to textile industries.
Which of the following is/are correct?

59.
A and B are partners sharing profits in the firm in the ratio of 2 : 3. Goodwill appears in the books of firm at Rs. 10,000. C joins the firm for $$\frac{1}{5}$$ share of profits. His share of Goodwill is estimated to be Rs. 15,000. The old partner's account will be credited with Goodwill by

60.
Good worth Rs. 500 have been taken by the proprietor for his personal use, for which no entry has been passed in the books. This is an