Accounting MCQ Questions and Solutions with Explanations | Commerce

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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

11.
Accounting equation is based on-

A. Going concern concept

B. Dual aspect concept

C. Money measurement concept

D. Cost concept

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12.
Some of the items of liability are given below
i. Bank overdraft
ii. Debenture
iii. Loan from financial institution
iv. Unpaid wages
v. Creditors
Current liabilities in the above are

A. iv and v

B. i, iii and iv

C. i, iv and v

D. All of these

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13.
State which of the following is not a capital expenditure?

A. Payment of Rs. 1,00,000 for purchase of land for agricultural farm

B. Rs. 3,00,000 excise duty paid on manufactured sugar

C. Investment of Rs. 50,000 in government debt

D. Payment of Rs. 60,000 on contruction of railway siding

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14.
As per Section 52 of the companies Act, 2013, the balance in the Security Premium Account cannot be utilized for

A. payment of dividend

B. writing off discount on issue of shares

C. issue of fully paid-up bonus share

D. capital losses

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15.
Income and expenditure account is a:

A. personal account

B. real account

C. nominal account

D. suspense account

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16.
In which of the following account(s), accounting entries are made at the book value of assets and liabilities?

A. Revaluation

B. Capital

C. Realisation

D. Suspense

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17.
Under purchase method, any excess of the amount of purchase consideration over the acquired assets of the transferor company should be recognised as

A. statutory reserve

B. amalgamation adjustment

C. equity shares

D. goodwill

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18.
"The business organization will be going concern" it is

A. An accounting principle

B. An accounting concept

C. An accounting convention

D. An accounting imagination

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19.
If debt is Rs. 220, cash balance is Rs. 20 and equity is Rs. 300, then the gearing ratio is

A. 20%

B. 40%

C. 50%

D. 30%

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20.
A share of Rs. 20 originally issued at a discount of Rs. 2, was forfeited and the amount received on it was Rs. 4. The maximum discount on reissue of such forfeited share will be

A. Rs. 6

B. Rs. 4

C. Rs. 3

D. Rs. 5

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Accounting MCQ Questions and Solutions with Explanations | Commerce

11. Accounting equation is based on-

Answer & Solution

12. Some of the items of liability are given below i. Bank overdraft ii. Debenture iii. Loan from financial institution iv. Unpaid wages v. Creditors Current liabilities in the above are

Answer & Solution

13. State which of the following is not a capital expenditure?

Answer & Solution

14. As per Section 52 of the companies Act, 2013, the balance in the Security Premium Account cannot be utilized for

Answer & Solution

15. Income and expenditure account is a:

Answer & Solution

16. In which of the following account(s), accounting entries are made at the book value of assets and liabilities?

Answer & Solution

17. Under purchase method, any excess of the amount of purchase consideration over the acquired assets of the transferor company should be recognised as

Answer & Solution

18. "The business organization will be going concern" it is

Answer & Solution

19. If debt is Rs. 220, cash balance is Rs. 20 and equity is Rs. 300, then the gearing ratio is

Answer & Solution

20. A share of Rs. 20 originally issued at a discount of Rs. 2, was forfeited and the amount received on it was Rs. 4. The maximum discount on reissue of such forfeited share will be

Answer & Solution

Read More Section(Accounting)

11.
Accounting equation is based on-

12.
Some of the items of liability are given below
i. Bank overdraft
ii. Debenture
iii. Loan from financial institution
iv. Unpaid wages
v. Creditors
Current liabilities in the above are

13.
State which of the following is not a capital expenditure?

14.
As per Section 52 of the companies Act, 2013, the balance in the Security Premium Account cannot be utilized for

15.
Income and expenditure account is a:

16.
In which of the following account(s), accounting entries are made at the book value of assets and liabilities?

17.
Under purchase method, any excess of the amount of purchase consideration over the acquired assets of the transferor company should be recognised as

18.
"The business organization will be going concern" it is

19.
If debt is Rs. 220, cash balance is Rs. 20 and equity is Rs. 300, then the gearing ratio is

20.
A share of Rs. 20 originally issued at a discount of Rs. 2, was forfeited and the amount received on it was Rs. 4. The maximum discount on reissue of such forfeited share will be