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

61.
Given,

Total Assets Turnover 4

Net Profit 10%

Total Assets Rs. 50,000

Net profit will be

A. Rs. 15,000

B. Rs. 10,000

C. Rs. 25,000

D. Rs. 20,000

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62.
In the event of the death of a partner, the accumulated profit and losses are shared by the partners in their

A. old profit sharing ratio

B. new profit sharing ratio

C. capital ratio

D. equal ratio

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63.
All the following are benefits of Accounting Standards except

A. AS cannot override the statute

B. AS reduce to a reasonable extent confusing variations in the accounting treatments used to prepare financial statements

C. AS facilitates comparison of financial statements of companies

D. AS may call for disclosure beyond that required by law

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64.
Which reflects changes in the working capital?

A. Balance sheet

B. Sales

C. Fund flow statement

D. Profit

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65.
Which of the following account is credited when shares are issued at a premium?

A. Share allotment account

B. Share forfeited account

C. Share first call account

D. Share premium account

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66.
A machine with a written down value of Rs. 10,000 has been sold for Rs. 13,000. The amount realized is a:

A. Capital receipt and profit involved should be transferred to capital reserve

B. Revenue receipt

C. Capital receipt and profit involved should be transferred to general reserve

D. Capital receipt and profit involved should be transferred to Profit & Loss A/c

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67.
Which of the following account's balance will not be transferred to realisation account?

A. Provision for bad debts

B. Debtors

C. Goodwill

D. Cash and Bank

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68.
Which of the following items is a current liability:

A. Arrears of wages

B. Redeemable preference share

C. Share premium

D. Provision for machinery depreciation

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69.
Statement I The profit and loss account shows the financial results of the concernfor a period.
Statement II In profit and loss account, indirect expenses are charged against the gross profit.

A. Both statements are correct

B. Both statements are incorrect

C. Statement I is correct, but statement II is incorrect

D. Statement I is incorrect, but statement II is correct

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70.
A transaction results in the flow of funds

A. when a non-current asset is purchased out of a current assest

B. when debentures are redeemed on cash

C. when preference share capital is issued

D. in all the above cases

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Accounting MCQ Questions and Solutions with Explanations | Commerce

61. Given, Total Assets Turnover 4 Net Profit 10% Total Assets Rs. 50,000 Net profit will be

Answer & Solution

62. In the event of the death of a partner, the accumulated profit and losses are shared by the partners in their

Answer & Solution

63. All the following are benefits of Accounting Standards except

Answer & Solution

64. Which reflects changes in the working capital?

Answer & Solution

65. Which of the following account is credited when shares are issued at a premium?

Answer & Solution

66. A machine with a written down value of Rs. 10,000 has been sold for Rs. 13,000. The amount realized is a:

Answer & Solution

67. Which of the following account's balance will not be transferred to realisation account?

Answer & Solution

68. Which of the following items is a current liability:

Answer & Solution

69. Statement I The profit and loss account shows the financial results of the concernfor a period. Statement II In profit and loss account, indirect expenses are charged against the gross profit.

Answer & Solution

70. A transaction results in the flow of funds

Answer & Solution

Read More Section(Accounting)

61.
Given,

Total Assets Turnover 4

Net Profit 10%

Total Assets Rs. 50,000

Net profit will be

62.
In the event of the death of a partner, the accumulated profit and losses are shared by the partners in their

63.
All the following are benefits of Accounting Standards except

64.
Which reflects changes in the working capital?

65.
Which of the following account is credited when shares are issued at a premium?

66.
A machine with a written down value of Rs. 10,000 has been sold for Rs. 13,000. The amount realized is a:

67.
Which of the following account's balance will not be transferred to realisation account?

68.
Which of the following items is a current liability:

69.
Statement I The profit and loss account shows the financial results of the concernfor a period.
Statement II In profit and loss account, indirect expenses are charged against the gross profit.

70.
A transaction results in the flow of funds