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

61.
You wish to invest a large of money in a company for a long-term. which of the following ratios will be most appropriate for you to reach a decision:

A. Total Debts/Net Worth

B. Long-term Debts/Total Capitalisation

C. Total Debts/Total Equity Share-holdings

D. Sales less Cost of goods sold/Total Sales

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62.
The cost of right shares is

A. subtracted from the cost of investments

B. added to the cost of investments

C. no treatment is required

D. none of the above

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63.
Sales + Closing stock - Purchases - Gross Profit =

A. Purchase Returns

B. Cost of Goods Sold

C. Opening Stock

D. None of the above

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64.
Under which of the following Sections of the Company's Act, 1956 a company can use share premium for certain purposes?

A. Section 52

B. Section 65

C. Section 78

D. Section 80

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65.
Which of the following is not correctly matched in the term of Loss/income and Nature?

A. Interest payable on debentures ⇔ A charge against profit of the company

B. Loss on issue of debenture ⇔ Deferred revenue expenditure

C. Premium on issue of shares ⇔ Capital profits

D. Pre-incorporation profit ⇔ Capital profits

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66.
If for the redemption of preference share capital of Rs. 1,00,000, 5,000 equity shares of Rs. 10 each are issued at a discount of 10% the amount to be transferred to Capital Redemption Reserve Fund will be:

A. Rs. 60,000

B. Rs. 50,000

C. Rs. 55,000

D. Rs. 45,000

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67.
Preliminary expenses of a company should be shown in the final accounts on

A. Assets side of Balance Sheet

B. Liabilities side of Balance Sheet

C. Debit side of Trading A/c

D. Credit side of Profit & Loss A/c

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68.
The directors of Murfi Ltd made a final call of Rs. 50 per share on 1^st August, indicating the last date of payment of call money to be 31^st August. Mr. Akshit holding 5,000 shares paid the call money on 15^th October, if the company adopts Table A, the amount of interest on calls-in-arrears to be paid

A. Rs. 3,125

B. Rs. 1,562.50

C. Rs. 1,875

D. Rs. 1,500

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69.
The Accounting Standards Board of India does not perform the following function:

A. Formulation of Accounting Standards established by Institute of Chartered Accountants of India

B. Review of Accounting Standards established by International Accounting Standards Committee

C. Issue of guidelines and clarification notes on points arising from Accounting Standards

D. Propagate the Accounting Standards and persuade business houses to adopt them

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70.
An entity issues shares as consideration for the purchase of inventory. The shares were issued on 1^st January, 2017. The inventory is eventually sold on 31^st December, 2018. The value of the inventory on 1^st January, 2017, was Rs. 8,00,000. This value was unchanged upto the date of sale. The sale proceed was Rs. 12,00,000. The shares issued have a market value of Rs. 9,00,000. Which of the following statement correctly describes the accounting treatment of this share based payment transaction?

A. Equity is increased by Rs. 8,00,000 and inventory is increased by Rs. 8,00,000. The inventory value is expensed on sale on 31^st December, 2018

B. Equity is increased by Rs. 9,00,000, inventory is increased by Rs. 9,00,000, the inventory value is expensed on sale on 31^st December, 2018

C. Equity is increased by Rs. 8,00,000 and inventory is increased by Rs. 8,00,000, the inventory value is expensed over the two years to 31^st December, 2018

D. Equity is increased by Rs. 9,00,000, inventory is increased by Rs. 9,00,000, the inventory value is expensed over the two years to 31^st December, 2018

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Accounting MCQ Questions and Solutions with Explanations | Commerce

61. You wish to invest a large of money in a company for a long-term. which of the following ratios will be most appropriate for you to reach a decision:

Answer & Solution

62. The cost of right shares is

Answer & Solution

63. Sales + Closing stock - Purchases - Gross Profit =

Answer & Solution

64. Under which of the following Sections of the Company's Act, 1956 a company can use share premium for certain purposes?

Answer & Solution

65. Which of the following is not correctly matched in the term of Loss/income and Nature?

Answer & Solution

66. If for the redemption of preference share capital of Rs. 1,00,000, 5,000 equity shares of Rs. 10 each are issued at a discount of 10% the amount to be transferred to Capital Redemption Reserve Fund will be:

Answer & Solution

67. Preliminary expenses of a company should be shown in the final accounts on

Answer & Solution

Answer & Solution

69. The Accounting Standards Board of India does not perform the following function:

Answer & Solution

Answer & Solution

Read More Section(Accounting)

61.
You wish to invest a large of money in a company for a long-term. which of the following ratios will be most appropriate for you to reach a decision:

62.
The cost of right shares is

63.
Sales + Closing stock - Purchases - Gross Profit =

64.
Under which of the following Sections of the Company's Act, 1956 a company can use share premium for certain purposes?

65.
Which of the following is not correctly matched in the term of Loss/income and Nature?

66.
If for the redemption of preference share capital of Rs. 1,00,000, 5,000 equity shares of Rs. 10 each are issued at a discount of 10% the amount to be transferred to Capital Redemption Reserve Fund will be:

67.
Preliminary expenses of a company should be shown in the final accounts on

69.
The Accounting Standards Board of India does not perform the following function: