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.
The single entry system is defective because-
I. only one account is maintained
II. the trial balance cannot be prepared
III. the net profit cannot be accurately calculated
IV. the possibility of fraud and misappropriation is great
Select the correct answer from the following:

A. I, III and IV

B. I and II

C. II, III and IV

D. I only

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42.
Which of the following represents policy holders a/c?

A. P/L a/c

B. Revenue a/c

C. Balance sheet

D. None of these

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43.
Closing stock is valued at:

A. Market price

B. Cost price

C. Cost price or market price whichever is lower

D. Cost price or market price whichever is higher

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44.
. . . . . . . . is a device of reducing the risk undertaken by an insurance company.

A. Re-insurance

B. Double insurance

C. Risk insurance

D. None of these

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45.
Which of the following accounts will invariably have a debit balance?

A. Bank account

B. Accounts receivable account

C. Accounts payable account

D. Loan account

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46.
The basic rule of book-keeping, debit the receiver and credit the giver is applicable to:

A. nominal account

B. real account

C. personal account

D. drawing account

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47.
According to money measurement concept, which one of the following will be recorded in the books of accounts . . . . . . . .

A. excellent morale of workers

B. quality control in the business

C. managing ability of the manager

D. cost of machinery

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48.
. . . . . . . . is deducted from the called-up capital in order to calculate paid-up capital.

A. calls in arrear

B. calls in advance

C. uncalled capital

D. reserve capital

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49.
Capital redemption reserve is created out of:

A. Dividend equalization fund

B. P/L account

C. General reserve account

D. All of these

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50.
Under which of the following circumstances can a company resort to internal reconstruction?

A. accumulated huge losses

B. shortage of capital

C. over valued assets

D. All of these

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Accounting MCQ Questions and Solutions with Explanations | Commerce

41. The single entry system is defective because- I. only one account is maintained II. the trial balance cannot be prepared III. the net profit cannot be accurately calculated IV. the possibility of fraud and misappropriation is great Select the correct answer from the following:

Answer & Solution

42. Which of the following represents policy holders a/c?

Answer & Solution

43. Closing stock is valued at:

Answer & Solution

44. . . . . . . . . is a device of reducing the risk undertaken by an insurance company.

Answer & Solution

45. Which of the following accounts will invariably have a debit balance?

Answer & Solution

46. The basic rule of book-keeping, debit the receiver and credit the giver is applicable to:

Answer & Solution

47. According to money measurement concept, which one of the following will be recorded in the books of accounts . . . . . . . .

Answer & Solution

48. . . . . . . . . is deducted from the called-up capital in order to calculate paid-up capital.

Answer & Solution

49. Capital redemption reserve is created out of:

Answer & Solution

50. Under which of the following circumstances can a company resort to internal reconstruction?

Answer & Solution

Read More Section(Accounting)

41.
The single entry system is defective because-
I. only one account is maintained
II. the trial balance cannot be prepared
III. the net profit cannot be accurately calculated
IV. the possibility of fraud and misappropriation is great
Select the correct answer from the following:

42.
Which of the following represents policy holders a/c?

43.
Closing stock is valued at:

44.
. . . . . . . . is a device of reducing the risk undertaken by an insurance company.

45.
Which of the following accounts will invariably have a debit balance?

46.
The basic rule of book-keeping, debit the receiver and credit the giver is applicable to:

47.
According to money measurement concept, which one of the following will be recorded in the books of accounts . . . . . . . .

48.
. . . . . . . . is deducted from the called-up capital in order to calculate paid-up capital.

49.
Capital redemption reserve is created out of:

50.
Under which of the following circumstances can a company resort to internal reconstruction?