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

71.
The practice of valuation of inventory 'at cost or market price, whichever is lower' is an example of:

A. Cost Concept

B. Consistency Concept

C. Conservatism Concept

D. Realization Concept

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72.
Which of the following statements is incorrect?

A. When proposed dividend does not exceed 10%. It is not obligatory on the company to transfer any profit to its reserve

B. Capital redemption reserve can be utilised for writing off miscellaneous expenses and losses

C. Dividends is not payable on the calls paid in advance by shareholders

D. Reserves created by revaluation of fixed assets are not permitted to be capitalised

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73.
In order to implement the provisions of partnership deed, the firm prepares

A. Profit and Loss Adjustment Account

B. Profit and Loss Appropriation Account

C. Revaluation Account

D. Profit and Loss Account

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74.
A Ltd has allotted 10,000 shares to the applicants of 14,000 shares on pro-rata basis, The amount payable an application is Rs. 2. Mr. X applied for 420 shares. The number of shares allotted and the amount carried forward for adjustment against allotment money due from X is

A. 60 shares, Rs. 120

B. 320 shares, Rs. 200

C. 340 shares, Rs. 160

D. 300 shares, Rs. 240

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75.
The charter of a company is its:

A. Prospectus

B. Memorandum of Association

C. Certificate of Incorporation

D. Article of Association

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76.
Which of the following is not a source of funds:

A. Issue of share capital

B. Sale of fixed assets

C. Issue of bonus shares

D. Share premium

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77.
Donation received during the year Rs. 5,000. Donation received in advance Rs. 500, outstanding donation Rs. 300. Amount credited in Income and expenditure will be

A. Rs. 5,100

B. Rs. 4,800

C. Rs. 5,500

D. Rs. 5,300

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78.
In the absence of an agreement, interest to be allowed to the partners on their capital, according to Indian Partnership Act, will be at the rate of:

A. 5%

B. 6%

C. 9%

D. 0%

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79.
Which of the following errors will not be disclosed by Trial Balance?

A. Errors of Commission

B. Errors of Principle

C. Errors of finding balance

D. None of the above

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80.
Which of the following items is not taken in to account while computing Current Ratio?

A. Sundry Creditors

B. Sundry Debtors

C. Furniture

D. Bank Overdraf

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Accounting MCQ Questions and Solutions with Explanations | Commerce

71. The practice of valuation of inventory 'at cost or market price, whichever is lower' is an example of:

Answer & Solution

72. Which of the following statements is incorrect?

Answer & Solution

73. In order to implement the provisions of partnership deed, the firm prepares

Answer & Solution

74. A Ltd has allotted 10,000 shares to the applicants of 14,000 shares on pro-rata basis, The amount payable an application is Rs. 2. Mr. X applied for 420 shares. The number of shares allotted and the amount carried forward for adjustment against allotment money due from X is

Answer & Solution

75. The charter of a company is its:

Answer & Solution

76. Which of the following is not a source of funds:

Answer & Solution

77. Donation received during the year Rs. 5,000. Donation received in advance Rs. 500, outstanding donation Rs. 300. Amount credited in Income and expenditure will be

Answer & Solution

78. In the absence of an agreement, interest to be allowed to the partners on their capital, according to Indian Partnership Act, will be at the rate of:

Answer & Solution

79. Which of the following errors will not be disclosed by Trial Balance?

Answer & Solution

80. Which of the following items is not taken in to account while computing Current Ratio?

Answer & Solution

Read More Section(Accounting)

71.
The practice of valuation of inventory 'at cost or market price, whichever is lower' is an example of:

72.
Which of the following statements is incorrect?

73.
In order to implement the provisions of partnership deed, the firm prepares

74.
A Ltd has allotted 10,000 shares to the applicants of 14,000 shares on pro-rata basis, The amount payable an application is Rs. 2. Mr. X applied for 420 shares. The number of shares allotted and the amount carried forward for adjustment against allotment money due from X is

75.
The charter of a company is its:

76.
Which of the following is not a source of funds:

77.
Donation received during the year Rs. 5,000. Donation received in advance Rs. 500, outstanding donation Rs. 300. Amount credited in Income and expenditure will be

78.
In the absence of an agreement, interest to be allowed to the partners on their capital, according to Indian Partnership Act, will be at the rate of:

79.
Which of the following errors will not be disclosed by Trial Balance?

80.
Which of the following items is not taken in to account while computing Current Ratio?