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.
The sub-division of shares does not result in . . . . . . . . of capital.

A. reduction

B. increase

C. sub-division

D. none of these

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32.
The accounts that are related with income expenditure, profit and loss are called

A. Real account

B. Nominal account

C. Personal account

D. None of the above

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33.
Match List-I with List-II (subject) and select the correct answer:

List-I List-II

a. Preliminary expenses 1. Revenue expenditure

b. Interest on loan for business 2. Revenue receipts

c. Life subscription 3. Deferred revenue expenditure

d. Interest on bank deposits 4. Capital Receipts

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

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

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

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

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34.
In case of dissolution of the partnership, if a partner's capital account shows a debit balance and he subsequently turns out to be insolvent, what will be the accounting treatment? (Consider the case laws)

A. The loss has to be borne in the capital ratio by the solvent partners

B. The loss has to be borne in the existing profit sharing ratio

C. The loss has to be borne in the adjusted profit sharing ratio after insolvency

D. The loss has to be borne in the sacrificing ratio of the solvent partners

E. The loss has to be equally distributed among the solvent partners

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35.
Which of the following term is used to describe the process of writing down the long term investments in intangible assets:

A. Amortisation

B. Depreciation

C. Depletion

D. Dilapidation

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36.
A company may issue, at a discount share in the company of a class already issued if:

A. It is authorised by a resolution passed at the General Meeting and approved by the Company Law Board

B. At least one year has elapsed since the receipt of the certificate to commence business

C. The particulars of the discount allowed on the issue of shares are clearly mentioned in the prospectus issued

D. All the above conditions are fulfilled

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37.
Capital intensive industries cause:

A. Reduction in overall capital formation

B. Increase in the capital

C. Increase in future employment potential

D. Increase in tax revenue

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38.
Share premium money can be used for

A. Payment of dividend

B. Writing off goodwill

C. Issue of fully paid bonus shares

D. None of the above

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39.
Within how many days minimum subscription should be received?

A. 60

B. 100

C. 120

D. 150

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40.
Secret reserves may be created by

A. under valuation of liabilities only

B. under valuation of assets only

C. over valuation of assets only

D. over valuation of liabilities and under valuation of assets

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1 2 3 4 5 6 7 8 9 10

List-I	List-II
a. Preliminary expenses	1. Revenue expenditure
b. Interest on loan for business	2. Revenue receipts
c. Life subscription	3. Deferred revenue expenditure
d. Interest on bank deposits	4. Capital Receipts

Accounting MCQ Questions and Solutions with Explanations | Commerce

31. The sub-division of shares does not result in . . . . . . . . of capital.

Answer & Solution

32. The accounts that are related with income expenditure, profit and loss are called

Answer & Solution

33. Match List-I with List-II (subject) and select the correct answer: List-I List-II a. Preliminary expenses 1. Revenue expenditure b. Interest on loan for business 2. Revenue receipts c. Life subscription 3. Deferred revenue expenditure d. Interest on bank deposits 4. Capital Receipts

Answer & Solution

34. In case of dissolution of the partnership, if a partner's capital account shows a debit balance and he subsequently turns out to be insolvent, what will be the accounting treatment? (Consider the case laws)

Answer & Solution

35. Which of the following term is used to describe the process of writing down the long term investments in intangible assets:

Answer & Solution

36. A company may issue, at a discount share in the company of a class already issued if:

Answer & Solution

37. Capital intensive industries cause:

Answer & Solution

38. Share premium money can be used for

Answer & Solution

39. Within how many days minimum subscription should be received?

Answer & Solution

40. Secret reserves may be created by

Answer & Solution

Read More Section(Accounting)

31.
The sub-division of shares does not result in . . . . . . . . of capital.

32.
The accounts that are related with income expenditure, profit and loss are called

33.
Match List-I with List-II (subject) and select the correct answer:

List-I List-II

a. Preliminary expenses 1. Revenue expenditure

b. Interest on loan for business 2. Revenue receipts

c. Life subscription 3. Deferred revenue expenditure

d. Interest on bank deposits 4. Capital Receipts

34.
In case of dissolution of the partnership, if a partner's capital account shows a debit balance and he subsequently turns out to be insolvent, what will be the accounting treatment? (Consider the case laws)

35.
Which of the following term is used to describe the process of writing down the long term investments in intangible assets:

36.
A company may issue, at a discount share in the company of a class already issued if:

37.
Capital intensive industries cause:

38.
Share premium money can be used for

39.
Within how many days minimum subscription should be received?

40.
Secret reserves may be created by