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.
Sale of an asset on credit at a price higher than written down value of the asset, would

A. leave owner's equity unaffected

B. increase owner's equity to the extent of less value

C. increase owner's equity by the amount of sale

D. increase owner's equity to the extent of profit on sale

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32.
Which of the following will not be disclosed by trial balance?

A. Error in entering an amount in the account

B. Wrong totaling of an account

C. Decrease in gross profit percentage

D. Compensating error

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33.
How many columns are there in ledger?

A. 5

B. 7

C. 8

D. 10

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34.
Ideal current ratio is:

A. 1 : 1

B. 2 : 1

C. 1 : 2

D. 1 : 3

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35.
The margin of safety can be increased by-

A. reducing the fixed cost

B. increasing the selling price

C. reducing variable cost

D. all the above ways

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36.
In the double entry system of book keeping a transaction affects:

A. one account twice

B. two accounts at the same time

C. one account in two ways

D. two accounts in two ways each

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37.
On retirement or death of a partner, the retired or deceased partner's capital account will be credited with

A. His share of goodwill

B. Goodwill of the firm

C. Share of the goodwill of remaining partners

D. None of the above

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38.
When a business is purchased, any amount paid in excess of the total of assets, minus the liabilities taken, is called:

A. Share Premium

B. Goodwill

C. Capital Employed

D. Working Capital

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39.
A firm which manufctures boats has a fixed cost of Rs. 2,60,000/- per month. The selling price of the boat is Rs. 35,000/- boat. Variable cost per boat is Rs. 15,000/-. The boat yard can manufacture 20 boats per month. The break even output of the firm will be

A. It is not possible to determine from the above information

B. 13 boats

C. 25 boats

D. 20 boats

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40.
The amount of short working is equal to:

A. Minimum rent + Royalty

B. Royalty - Minimum rent

C. Minimum rent - Royalty

D. Royalty - Amount paid to landlord

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Accounting MCQ Questions and Solutions with Explanations | Commerce

31. Sale of an asset on credit at a price higher than written down value of the asset, would

Answer & Solution

32. Which of the following will not be disclosed by trial balance?

Answer & Solution

33. How many columns are there in ledger?

Answer & Solution

34. Ideal current ratio is:

Answer & Solution

35. The margin of safety can be increased by-

Answer & Solution

36. In the double entry system of book keeping a transaction affects:

Answer & Solution

37. On retirement or death of a partner, the retired or deceased partner's capital account will be credited with

Answer & Solution

38. When a business is purchased, any amount paid in excess of the total of assets, minus the liabilities taken, is called:

Answer & Solution

39. A firm which manufctures boats has a fixed cost of Rs. 2,60,000/- per month. The selling price of the boat is Rs. 35,000/- boat. Variable cost per boat is Rs. 15,000/-. The boat yard can manufacture 20 boats per month. The break even output of the firm will be

Answer & Solution

40. The amount of short working is equal to:

Answer & Solution

Read More Section(Accounting)

31.
Sale of an asset on credit at a price higher than written down value of the asset, would

32.
Which of the following will not be disclosed by trial balance?

33.
How many columns are there in ledger?

34.
Ideal current ratio is:

35.
The margin of safety can be increased by-

36.
In the double entry system of book keeping a transaction affects:

37.
On retirement or death of a partner, the retired or deceased partner's capital account will be credited with

38.
When a business is purchased, any amount paid in excess of the total of assets, minus the liabilities taken, is called:

39.
A firm which manufctures boats has a fixed cost of Rs. 2,60,000/- per month. The selling price of the boat is Rs. 35,000/- boat. Variable cost per boat is Rs. 15,000/-. The boat yard can manufacture 20 boats per month. The break even output of the firm will be

40.
The amount of short working is equal to: