Accounting MCQ Questions and Solutions with Explanations

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41.
A Company purchased 8% bonds at a cost of Rs. 12,00,000 (face value Rs. 10,00,000) on 1^st January 2003. Half yearly interest is payable on this investment on 30^th June and 31^st December each year. The company closes its accounts on 31^st March 2003. The amount of accured interest shown in profit and loss account for the year ended is:

A. Rs. 40,000

B. Rs. 60,000

C. Rs. 20,000

D. Rs. 80,000

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42.
Provision for Income tax is shown in a bank's Balance Sheet as . . . . . . . .

A. contingent liability

B. contingent asset

C. borrowings

D. other liabilities and provisions

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43.
Which of the following transactions will result in decrease in assets and decrease in liabilities?

A. Payment of a promissory note with cash

B. Materials returned to supplier on account

C. Redemption of debentures

D. All of these

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44.
In the case of joint stock companies, the assets and liabilities in B/S are arranged in the order of . . . . . . . .

A. serial number

B. performance

C. availability

D. None of these

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45.
Errors which affect one account can be . . . . . . . .

A. errors of omission

B. errors of principle

C. errors of posting

D. errors of commission

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46.
The main aim of . . . . . . . . is to ascertain cost relating to the various activities of the business and to have cost control.

A. financial accounting

B. cost accounting

C. management account

D. human resource accounting

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47.
In financial statements, adequate disclosure is ensured by companies as per the requirements of:
I. management policies
II. materiality concept
III. disclosure concept
IV. relevant provision of the Companies Act
V. internal control
Of these statements:

A. I and III are correct

B. I, II and III are correct

C. II, III and V are correct

D. II, III and IV are correct

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48.
Match List-I with List-II and select the correct answer using the options given below the lists:

List-I (Types of accounts) List-II (Principles)

a. Real Accounts 1. Debit the receiver credit the giver

b. Nominal Accounts 2. Debit what comes in credit what goes out

c. Personal Accounts 3. Debit all expenses credit all gains

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

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

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

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

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49.
If the operating expenses exceed gross profit, the excess is referred to as:

A. Operating income

B. Operating loss

C. Non-operating expenses

D. Non-operating income

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50.
Accounting for amalgamation is given in . . . . . . . .

A. AS 14

B. AS 16

C. AS 20

D. None of these

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1 2 3 4 5 6 7 8 9 10

List-I (Types of accounts)	List-II (Principles)
a. Real Accounts	1. Debit the receiver credit the giver
b. Nominal Accounts	2. Debit what comes in credit what goes out
c. Personal Accounts	3. Debit all expenses credit all gains

Accounting MCQ Questions and Solutions with Explanations | Commerce

Answer & Solution

42. Provision for Income tax is shown in a bank's Balance Sheet as . . . . . . . .

Answer & Solution

43. Which of the following transactions will result in decrease in assets and decrease in liabilities?

Answer & Solution

44. In the case of joint stock companies, the assets and liabilities in B/S are arranged in the order of . . . . . . . .

Answer & Solution

45. Errors which affect one account can be . . . . . . . .

Answer & Solution

46. The main aim of . . . . . . . . is to ascertain cost relating to the various activities of the business and to have cost control.

Answer & Solution

47. In financial statements, adequate disclosure is ensured by companies as per the requirements of: I. management policies II. materiality concept III. disclosure concept IV. relevant provision of the Companies Act V. internal control Of these statements:

Answer & Solution

Answer & Solution

49. If the operating expenses exceed gross profit, the excess is referred to as:

Answer & Solution

50. Accounting for amalgamation is given in . . . . . . . .

Answer & Solution

Read More Section(Accounting)

42.
Provision for Income tax is shown in a bank's Balance Sheet as . . . . . . . .

43.
Which of the following transactions will result in decrease in assets and decrease in liabilities?

44.
In the case of joint stock companies, the assets and liabilities in B/S are arranged in the order of . . . . . . . .

45.
Errors which affect one account can be . . . . . . . .

46.
The main aim of . . . . . . . . is to ascertain cost relating to the various activities of the business and to have cost control.

47.
In financial statements, adequate disclosure is ensured by companies as per the requirements of:
I. management policies
II. materiality concept
III. disclosure concept
IV. relevant provision of the Companies Act
V. internal control
Of these statements:

49.
If the operating expenses exceed gross profit, the excess is referred to as:

50.
Accounting for amalgamation is given in . . . . . . . .