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

41.
Which of the followeing is a leverage ratio?

A. Debt-equity ratio

B. Operating ratio

C. Stock ratio

D. Current ratio

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42.
Manager's commission is given at the rate of 10% on the profits after giving commission to him. If the profit before giving commission is Rs. 1,54,000, then payable commission will be

A. Rs. 14,000

B. Rs. 15,000

C. Rs. 16,000

D. None of the above

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43.
The relationship between liquidity and risk is

A. Direct

B. Inverse

C. No relationship

D. None of these

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44.
If the fully paid-up shares of Rs. 80,000 are issued to sellers in consideration of net assts of Rs. 60,000 the balance of Rs. 20,000 will be

A. Debited to profit and loss account

B. Debited to Goodwill account

C. Credited to capital reserve account

D. Eradiated to security premium account

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45.
A, B and C start a business with each investing Rs. 20,000. After 5 months, A withdrew Rs. 6,000, B withdrew Rs. 4,000 and C invested an additional Rs. 6,000. At the end of the year, a total profit of Rs. 69,900 was recorded. Find the share of each

A. Rs. 20,400, Rs. 20,500, Rs. 18,700

B. Rs. 21,500, Rs. 22,600, Rs. 21,700

C. Rs. 20,500, Rs. 21,200, Rs. 28,200

D. Rs. 21,900, Rs. 22,700, Rs. 27,300

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46.
Furniture of book value of Rs. 1,500 was sold for Rs. 600 and the new fixture of Rs. 1,000 was purchased and carriage of Rs. 25 paid. The amount of capital expenditure will be:

A. Rs. 1,000

B. Rs. 1,025

C. Rs. 900

D. Rs. 1,500

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47.
If company A purchases majority shares of company B, what is it called?

A. Amalgamation

B. Absorption

C. Takeover

D. None of the above

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48.
The closing balance of the debtors was Rs. 12,000. The sales made to the customers during the year were Rs. 21,500 and Rs. 23,600 were realized from the customers. Debtors opening balance was-

A. Rs. 33,500

B. Rs. 14,100

C. Rs. 9,800

D. Rs. 33,300

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49.
A and B are partners sharing profits in the ratio of 3 : 2. Their books showed goodwill at Rs. 3,000. C is admitted with $${\frac{1}{4}^{{\text{th}}}}$$ share of profit and brings Rs. 10,000 as his capital. But, he is not able to bring in cash for his share of goodwill Rs. 3,000. How will you treat this?

A. Goodwill is raised by Rs. 12,000

B. C will remain as debtor for Rs. 3,000

C. C's A/c is debited for Rs. 3,000

D. Goodwill is raised by Rs. 9,000

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50.
In India, which of the following is prepared on the guidelines of AS-3 (Accounting Standard-3)?

A. Balance Sheet of a Company

B. Funds Flow Statement

C. Cash Flow Statement

D. Consolidated Financial Statement

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Accounting MCQ Questions and Solutions with Explanations | Commerce

41. Which of the followeing is a leverage ratio?

Answer & Solution

42. Manager's commission is given at the rate of 10% on the profits after giving commission to him. If the profit before giving commission is Rs. 1,54,000, then payable commission will be

Answer & Solution

43. The relationship between liquidity and risk is

Answer & Solution

44. If the fully paid-up shares of Rs. 80,000 are issued to sellers in consideration of net assts of Rs. 60,000 the balance of Rs. 20,000 will be

Answer & Solution

45. A, B and C start a business with each investing Rs. 20,000. After 5 months, A withdrew Rs. 6,000, B withdrew Rs. 4,000 and C invested an additional Rs. 6,000. At the end of the year, a total profit of Rs. 69,900 was recorded. Find the share of each

Answer & Solution

46. Furniture of book value of Rs. 1,500 was sold for Rs. 600 and the new fixture of Rs. 1,000 was purchased and carriage of Rs. 25 paid. The amount of capital expenditure will be:

Answer & Solution

47. If company A purchases majority shares of company B, what is it called?

Answer & Solution

48. The closing balance of the debtors was Rs. 12,000. The sales made to the customers during the year were Rs. 21,500 and Rs. 23,600 were realized from the customers. Debtors opening balance was-

Answer & Solution

Answer & Solution

50. In India, which of the following is prepared on the guidelines of AS-3 (Accounting Standard-3)?

Answer & Solution

Read More Section(Accounting)

41.
Which of the followeing is a leverage ratio?

42.
Manager's commission is given at the rate of 10% on the profits after giving commission to him. If the profit before giving commission is Rs. 1,54,000, then payable commission will be

43.
The relationship between liquidity and risk is

44.
If the fully paid-up shares of Rs. 80,000 are issued to sellers in consideration of net assts of Rs. 60,000 the balance of Rs. 20,000 will be

45.
A, B and C start a business with each investing Rs. 20,000. After 5 months, A withdrew Rs. 6,000, B withdrew Rs. 4,000 and C invested an additional Rs. 6,000. At the end of the year, a total profit of Rs. 69,900 was recorded. Find the share of each

46.
Furniture of book value of Rs. 1,500 was sold for Rs. 600 and the new fixture of Rs. 1,000 was purchased and carriage of Rs. 25 paid. The amount of capital expenditure will be:

47.
If company A purchases majority shares of company B, what is it called?

48.
The closing balance of the debtors was Rs. 12,000. The sales made to the customers during the year were Rs. 21,500 and Rs. 23,600 were realized from the customers. Debtors opening balance was-

50.
In India, which of the following is prepared on the guidelines of AS-3 (Accounting Standard-3)?