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.
Which of the following is not an accounting concept?

A. Matching Concepts

B. Dual Aspect Concepts

C. True and Fair Concepts

D. Going Concern Concept

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12.
The following accounting information is given by a company
Total assets turnover 3 times the net profit margin: 10%
Total assets: Rs. 1,00,000.
The net profit is

A. Rs. 10,000

B. Rs. 15,000

C. Rs. 25,000

D. Rs. 30,000

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13.
Which of the following transactions would affect the current ratio:

A. cash received from debtors

B. selling the old machine for cash

C. converting the debentures into equity shares

D. cash purchases

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14.
On account purchases of goods at a current ratio of 2 : 1

A. Increase current ratio

B. Decrease current ratio

C. Increase gross profit percentage

D. Decrease gross profit percentage

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15.
Return on Investment (ROI) is computed as

A. Net Profit Ratio × Capital Turnover Ratio

B. Operating Net Profit Ratio × Shareholders

C. $$\frac{{{\text{Net Profit}}}}{{{\text{Sales}}}}$$

D. $$\frac{{{\text{Cost of Sales}}}}{{{\text{Capital Employed}}}}$$

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16.
According to the profit and loss account, the net profit for the year is Rs. 1,50,000. The total interest on partner's capital is Rs. 18,000 and, interest on partner's drawings is Rs. 2,000. The net profit as per profit and loss appropriation account will be

A. Rs. 1,66,000

B. Rs. 1,70,000

C. Rs. 1,30,000

D. Rs. 1,34,000

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17.
A and B are partners sharing profits and losses in the ratio 3 : 1. They decided to admit C. C will be given $${\frac{1}{4}^{{\text{th}}}}$$ share in future profits of the firm which he takes from A and B in ratio 2 : 1. New profit sharing ratio will be:

A. 4 : 3 : 1

B. 7 : 2 : 3

C. 3 : 1 : 7

D. 7 : 3 : 2

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18.
Subscriptions outstanding 31^st December, 1993 Rs. 200
Subscriptions received in advance in year 1993:
1994 ⇔ 300
1995 ⇔ 100
Total subscriptions received during 1994 Rs. 5,800
Subscriptions outstanding on 31^st December, 1994:
1993 ⇔ 50
1994 ⇔ 250
Subscriptions received in advance in 1994:
1995 ⇔ 350
1996 ⇔ 150
Subscriptions to be shown in Income and Expenditure Account for the year ended 31^st December, 1994 is:

A. Rs. 5,600

B. Rs. 5,700

C. Rs. 5,800

D. Rs. 5,900

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19.
Sometimes all the partners including the new partner may agree not to alter the book value of assets and liabilities even when they agree to revalue them. In order to record this, . . . . . . . . is opened.

A. Revaluation A/c

B. Goodwill A/c

C. Suspense A/c

D. Memorandum Revaluation A/c

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20.
A and B are partners sharing profit and loss in 2 : 1 ratio. They admitted C who agreed to contribute Rs. 50,000 towards his capital. The future profit sharing ratio of A, B and C is 2 : 3 : 3 respectively. C agreed to transfer Rs. 15,000 for Goodwill from his capital account. A's capital account will be credited by

A. Rs. 15,000

B. Rs. 16,333

C. Rs. 16,667

D. Rs. 17,333

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Accounting MCQ Questions and Solutions with Explanations | Commerce

11. Which of the following is not an accounting concept?

Answer & Solution

12. The following accounting information is given by a company Total assets turnover 3 times the net profit margin: 10% Total assets: Rs. 1,00,000. The net profit is

Answer & Solution

13. Which of the following transactions would affect the current ratio:

Answer & Solution

14. On account purchases of goods at a current ratio of 2 : 1

Answer & Solution

15. Return on Investment (ROI) is computed as

Answer & Solution

16. According to the profit and loss account, the net profit for the year is Rs. 1,50,000. The total interest on partner's capital is Rs. 18,000 and, interest on partner's drawings is Rs. 2,000. The net profit as per profit and loss appropriation account will be

Answer & Solution

17. A and B are partners sharing profits and losses in the ratio 3 : 1. They decided to admit C. C will be given $${\frac{1}{4}^{{\text{th}}}}$$ share in future profits of the firm which he takes from A and B in ratio 2 : 1. New profit sharing ratio will be:

Answer & Solution

Answer & Solution

19. Sometimes all the partners including the new partner may agree not to alter the book value of assets and liabilities even when they agree to revalue them. In order to record this, . . . . . . . . is opened.

Answer & Solution

Answer & Solution

Read More Section(Accounting)

11.
Which of the following is not an accounting concept?

12.
The following accounting information is given by a company
Total assets turnover 3 times the net profit margin: 10%
Total assets: Rs. 1,00,000.
The net profit is

13.
Which of the following transactions would affect the current ratio:

14.
On account purchases of goods at a current ratio of 2 : 1

15.
Return on Investment (ROI) is computed as

16.
According to the profit and loss account, the net profit for the year is Rs. 1,50,000. The total interest on partner's capital is Rs. 18,000 and, interest on partner's drawings is Rs. 2,000. The net profit as per profit and loss appropriation account will be

17.
A and B are partners sharing profits and losses in the ratio 3 : 1. They decided to admit C. C will be given $${\frac{1}{4}^{{\text{th}}}}$$ share in future profits of the firm which he takes from A and B in ratio 2 : 1. New profit sharing ratio will be:

19.
Sometimes all the partners including the new partner may agree not to alter the book value of assets and liabilities even when they agree to revalue them. In order to record this, . . . . . . . . is opened.