Accounting MCQ Questions and Solutions with Explanations

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81.
The purpose of ledger is to

A. Classify the transactions

B. Grouping of transactions

C. Find balance in each account

D. All of the above

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82.
In case of dissolution, prior to final distribution to partners, the balance of cash should be equal to

A. the sale of assets plus the beginning balance of cash after payment of liabilities

B. the balance of cash prior to the sale of assets plus or minus a gain or loss from realisation

C. the sale of assets minus the beginning balance of cash prior to payment of liabilities

D. the total capital balances

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83.
A company can buy back equity shares out of

A. its securities premium account

B. the proceeds of preference shares

C. its free reserves

D. all of the above

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84.
Excess of face value over issue price of a share is called

A. Profit

B. Discount

C. Loss

D. Security premium

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85.
When two or more companies liquidate to form a new company, it is called

A. amalgamation

B. absorption

C. reconstruction

D. purchase of business

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86.
Final accounts and statements mean:

A. Balance sheet

B. Profit and loss A/c

C. Trading Account

D. All the above

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87.
One of the following statements is wrong if there is absence of partnership deed.

A. No partner has the right to receive salary

B. No interest is allowed on capital

C. No interest is to be charged on drawings

D. Interest @ 5% is to be allowed on the partner's loan to the firm

E. Profit & losses are to be shared equally by the partner's

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88.
The surplus credit balance of share premium account is transferred to:

A. Profit and loss account

B. Capital redemption reserve account

C. Capital reserve account

D. Sinking fund reserve account

E. Revaluation account

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89.
The formula is $$ = \frac{{{\text{Debt(long term)}}}}{{{\text{Equity(Shareholder's Funds)}}}}$$

A. Debt and total funds ratio

B. Ownership Ratio

C. Capital Turnover Ratio

D. Debt-Equity Ratio

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90.
Which one of the following statements is True:

A. Excess expenditure over income is shown on the debit side of Income and Expenditure Account

B. Subscription received in advance is not shown in receipt and payment account

C. Special subscription received by a club for Governor's Party will be shown in the Balance Sheet

D. Subscription received in 1996 for the year 1997 will be shown on the liability side of the Balance Sheet

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Accounting MCQ Questions and Solutions with Explanations | Commerce

81. The purpose of ledger is to

Answer & Solution

82. In case of dissolution, prior to final distribution to partners, the balance of cash should be equal to

Answer & Solution

83. A company can buy back equity shares out of

Answer & Solution

84. Excess of face value over issue price of a share is called

Answer & Solution

85. When two or more companies liquidate to form a new company, it is called

Answer & Solution

86. Final accounts and statements mean:

Answer & Solution

87. One of the following statements is wrong if there is absence of partnership deed.

Answer & Solution

88. The surplus credit balance of share premium account is transferred to:

Answer & Solution

89. The formula is $$ = \frac{{{\text{Debt(long term)}}}}{{{\text{Equity(Shareholder's Funds)}}}}$$

Answer & Solution

90. Which one of the following statements is True:

Answer & Solution

Read More Section(Accounting)

81.
The purpose of ledger is to

82.
In case of dissolution, prior to final distribution to partners, the balance of cash should be equal to

83.
A company can buy back equity shares out of

84.
Excess of face value over issue price of a share is called

85.
When two or more companies liquidate to form a new company, it is called

86.
Final accounts and statements mean:

87.
One of the following statements is wrong if there is absence of partnership deed.

88.
The surplus credit balance of share premium account is transferred to:

89.
The formula is $$ = \frac{{{\text{Debt(long term)}}}}{{{\text{Equity(Shareholder's Funds)}}}}$$

90.
Which one of the following statements is True: