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

1.
How many companies are involved in the scheme of internal reconstruction?

A. One

B. Two

C. Three

D. Unlimited

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2.
Outstanding Expenses Account is:

A. Income and Expenditure Account

B. Nominal Account

C. Personal Account

D. Real Account

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3.
If profits are 25% of selling price, percentage of profit to cost would be

A. 20%

B. 25%

C. $$33\frac{1}{3}\% $$

D. 30%

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4.
"Double entry system is that system of book keeping where accounting is done through personal and impersonal accounts." This definition was given by-

A. William Pickles

B. M. J. Killer

C. R. N. Carter

D. None of the above

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5.
A machine was purchased for Rs. 1,000 and its life was estimated to be 3 years and at the end of life its book value will be Rs. 512. If depreciation is calculated according to written down value method. The rate of depreciation would be:

A. 25%

B. 15%

C. 20%

D. 10%

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6.
Premium on issue of shares is shown in balance sheet as:

A. An asset

B. A liability

C. An expense

D. A revenue

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7.
Bank account is . . . . . . . . on receipt of first call.

A. Debit

B. Credit

C. Debit or Credit

D. None of the above

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8.
If the average recovery period is 15 days and the average book receipts are Rs. 45,000, then what will be the total annual credit sales?

A. Rs. 10,80,000

B. Rs. 16,20,000

C. Rs. 6,75,000

D. Rs. 1,87,500

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9.
Interest on investments received Rs. 500 which includes Rs. 100 in respect of interest accrued in the preceding year.
What amount will be posted in the Income and expenditure Account:

A. Rs. 100

B. Rs. 500

C. Rs. 600

D. Rs. 400

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10.
X Ltd. forfeited 20 shares of Rs. 10 each (Rs. 8 called up) on which John had paid application and allotment money of Rs. 5 per share. Of these, 15 shares were reissued to Parker as fully paid up for Rs. 6 per share. What is the balance in the share forfeiture account after the relevant amount is transferred to the capital reserve account?

A. NIL

B. Rs. 5

C. Rs. 25

D. Rs. 100

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Accounting MCQ Questions and Solutions with Explanations | Commerce

1. How many companies are involved in the scheme of internal reconstruction?

Answer & Solution

2. Outstanding Expenses Account is:

Answer & Solution

3. If profits are 25% of selling price, percentage of profit to cost would be

Answer & Solution

4. "Double entry system is that system of book keeping where accounting is done through personal and impersonal accounts." This definition was given by-

Answer & Solution

5. A machine was purchased for Rs. 1,000 and its life was estimated to be 3 years and at the end of life its book value will be Rs. 512. If depreciation is calculated according to written down value method. The rate of depreciation would be:

Answer & Solution

6. Premium on issue of shares is shown in balance sheet as:

Answer & Solution

7. Bank account is . . . . . . . . on receipt of first call.

Answer & Solution

8. If the average recovery period is 15 days and the average book receipts are Rs. 45,000, then what will be the total annual credit sales?

Answer & Solution

9. Interest on investments received Rs. 500 which includes Rs. 100 in respect of interest accrued in the preceding year. What amount will be posted in the Income and expenditure Account:

Answer & Solution

Answer & Solution

Read More Section(Accounting)

1.
How many companies are involved in the scheme of internal reconstruction?

2.
Outstanding Expenses Account is:

3.
If profits are 25% of selling price, percentage of profit to cost would be

4.
"Double entry system is that system of book keeping where accounting is done through personal and impersonal accounts." This definition was given by-

5.
A machine was purchased for Rs. 1,000 and its life was estimated to be 3 years and at the end of life its book value will be Rs. 512. If depreciation is calculated according to written down value method. The rate of depreciation would be:

6.
Premium on issue of shares is shown in balance sheet as:

7.
Bank account is . . . . . . . . on receipt of first call.

8.
If the average recovery period is 15 days and the average book receipts are Rs. 45,000, then what will be the total annual credit sales?

9.
Interest on investments received Rs. 500 which includes Rs. 100 in respect of interest accrued in the preceding year.
What amount will be posted in the Income and expenditure Account: