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.
Interest on performing assets should be recognized on . . . . . . . . basis.

A. actually received

B. standard

C. accrual

D. None of these

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32.
The following figures (all in Rs.) relate to non-trading concern:
1^st January, 1995 stock of medicines 5,000
1^st January, 1995 outstanding creditors for medicines 3,000
Amount paid for medicines during the years 15,000
Value of medicines spoiled during the year stock of medicines 400
On 31^st December, 1995 3,500
The amount to be debited to income and expenditure account would be

A. Rs. 15,000

B. Rs. 18,500

C. Rs. 18,000

D. Rs. 13,500

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33.
Schedule 9 relates to . . . . . . . .

A. fixed assets

B. borrowings

C. advances

D. capital

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34.
At the time of endorsement of a bill, the drawer credits . . . . . . . .

A. the drawee

B. endorsee personal account

C. bills receivable account

D. bills for collection account

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35.
While preparing bank reconciliation statement, cheques paid into bank but not yet cleared are . . . . . . . .

A. added to the balance as per cash book to arrive at the balance as per pass book

B. deducted to the balance as per cash book to arrive at the balance as per pass book

C. divided to the balance as per cash book to arrive at the balance as per pass book

D. multiplied to the balance as per cash book to arrive at the balance as per pass book

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36.
Realization loss is transferred to . . . . . . . .

A. preference shareholders a/c

B. equity shareholders a/c

C. creditors a/c

D. None of these

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37.
A cartel is a combination firms

A. Which are functioning in a particular industry

B. Whose combined assets are worth more than 90% of total assets of the industry

C. Who control major chunk of the market

D. Whose combined profits are enormous

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38.
Which preparing accounts from incomplete records, the amount of credit sales is determined by?

A. preparing total creditors account

B. preparing total debtors account

C. ascertaining the balance in trading account other than closing stock

D. ascertaining the balance in debtors account and cash book

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39.
When the proposed dividend exceeds 20% of paid up capital, percentage of profit transferred to general reserve is . . . . . . . .

A. 2.5%

B. 5%

C. 7.5%

D. 10%

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40.
Advance payment of tax is a . . . . . . . .

A. prepaid expense

B. general reserve

C. interim dividend

D. provision for taxation

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Accounting MCQ Questions and Solutions with Explanations | Commerce

31. Interest on performing assets should be recognized on . . . . . . . . basis.

Answer & Solution

Answer & Solution

33. Schedule 9 relates to . . . . . . . .

Answer & Solution

34. At the time of endorsement of a bill, the drawer credits . . . . . . . .

Answer & Solution

35. While preparing bank reconciliation statement, cheques paid into bank but not yet cleared are . . . . . . . .

Answer & Solution

36. Realization loss is transferred to . . . . . . . .

Answer & Solution

37. A cartel is a combination firms

Answer & Solution

38. Which preparing accounts from incomplete records, the amount of credit sales is determined by?

Answer & Solution

39. When the proposed dividend exceeds 20% of paid up capital, percentage of profit transferred to general reserve is . . . . . . . .

Answer & Solution

40. Advance payment of tax is a . . . . . . . .

Answer & Solution

Read More Section(Accounting)

31.
Interest on performing assets should be recognized on . . . . . . . . basis.

33.
Schedule 9 relates to . . . . . . . .

34.
At the time of endorsement of a bill, the drawer credits . . . . . . . .

35.
While preparing bank reconciliation statement, cheques paid into bank but not yet cleared are . . . . . . . .

36.
Realization loss is transferred to . . . . . . . .

37.
A cartel is a combination firms

38.
Which preparing accounts from incomplete records, the amount of credit sales is determined by?

39.
When the proposed dividend exceeds 20% of paid up capital, percentage of profit transferred to general reserve is . . . . . . . .

40.
Advance payment of tax is a . . . . . . . .