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

71.
At the time of retirement of a partner, the adjustment of goodwill is done, in which ratio?

A. Old profit sharing ratio

B. Gaining ratio

C. Sacrificing ratio

D. New profit sharing ratio

Answer & Solution Discuss in Board Save for Later

72.
The system of recording transaction based on dual aspect concept is called:

A. Double account system

B. Double entry system

C. Single entry system

D. None of these

Answer & Solution Discuss in Board Save for Later

73.
Trial balance is

A. Part of double entry system

B. Part of final accounts

C. A rememberance account

D. None of the above

Answer & Solution Discuss in Board Save for Later

74.
Income tax on interest, dividends and rent should be

A. Debited to Profit and Loss Account

B. Debited to Profit and Loss Appropriation Account

C. Debited to provision for taxation

D. None of these

Answer & Solution Discuss in Board Save for Later

75.
Higher the ratio, lower the profitability is applicable to-

A. Gross Profit Ratio

B. Net Profit Ratio

C. Operating Ratio

D. Return on Investment

Answer & Solution Discuss in Board Save for Later

76.
Accounting Standards in India are prescribed by:

A. Securities and Exchange Board of India

B. Company Law Board

C. Institute of Costs and Works Accountants of India

D. Institute of Chartered Accountants of India

Answer & Solution Discuss in Board Save for Later

77.
The capital of a partner at the end of the year is Rs. 20,000. His share of profit and drawing during the year is 10,000 and 5,000 respectively. His opening capital would be

A. Rs. 17,000

B. Rs. 20,000

C. Rs. 15,000

D. Rs. 16,500

Answer & Solution Discuss in Board Save for Later

78.
Which one of the following Entries is correct.
When there is loss of goods by fire and the claim is admitted partially by the Insurance Company?

A. Insurance claim account Dr - Loss due to fire account Dr - To Trading Account

B. Insurance claim account Dr - Profit & loss account Dr - To insurance company

C. Insurance company account Dr - Profit & loss account Dr - To fire loss Account

D. Profit & loss account Dr - Insurance premium account Dr - To Trading Account

E. Insurance claim Account Dr - To Trading Account

Answer & Solution Discuss in Board Save for Later

79.
Given:
Contribution = Rs. 1,00,000
Fixed cost = Rs. 50,000
Interest = Rs. 10,000
Income Tax = Rs. 10,000
Combined leverage will be:

A. 2.5

B. 2.0

C. 1.6

D. 1.25

Answer & Solution Discuss in Board Save for Later

80.
A business firm has earned a net profit of Rs. 60,000 in a year. The total sales for the year were Rs. 1,20,000 and the debtors in the beginning and the end of the year were Rs. 40,000 and Rs. 30,000 respectively. The cash flow from operation was

A. Rs. 60,000

B. Rs. 1,20,000

C. Rs. 10,000

D. Rs. 70,000

Answer & Solution Discuss in Board Save for Later

1 2 3 4 5 6 7 8 9 10

Accounting MCQ Questions and Solutions with Explanations | Commerce

71. At the time of retirement of a partner, the adjustment of goodwill is done, in which ratio?

Answer & Solution

72. The system of recording transaction based on dual aspect concept is called:

Answer & Solution

73. Trial balance is

Answer & Solution

74. Income tax on interest, dividends and rent should be

Answer & Solution

75. Higher the ratio, lower the profitability is applicable to-

Answer & Solution

76. Accounting Standards in India are prescribed by:

Answer & Solution

77. The capital of a partner at the end of the year is Rs. 20,000. His share of profit and drawing during the year is 10,000 and 5,000 respectively. His opening capital would be

Answer & Solution

78. Which one of the following Entries is correct. When there is loss of goods by fire and the claim is admitted partially by the Insurance Company?

Answer & Solution

79. Given: Contribution = Rs. 1,00,000 Fixed cost = Rs. 50,000 Interest = Rs. 10,000 Income Tax = Rs. 10,000 Combined leverage will be:

Answer & Solution

80. A business firm has earned a net profit of Rs. 60,000 in a year. The total sales for the year were Rs. 1,20,000 and the debtors in the beginning and the end of the year were Rs. 40,000 and Rs. 30,000 respectively. The cash flow from operation was

Answer & Solution

Read More Section(Accounting)

71.
At the time of retirement of a partner, the adjustment of goodwill is done, in which ratio?

72.
The system of recording transaction based on dual aspect concept is called:

73.
Trial balance is

74.
Income tax on interest, dividends and rent should be

75.
Higher the ratio, lower the profitability is applicable to-

76.
Accounting Standards in India are prescribed by:

77.
The capital of a partner at the end of the year is Rs. 20,000. His share of profit and drawing during the year is 10,000 and 5,000 respectively. His opening capital would be

78.
Which one of the following Entries is correct.
When there is loss of goods by fire and the claim is admitted partially by the Insurance Company?

79.
Given:
Contribution = Rs. 1,00,000
Fixed cost = Rs. 50,000
Interest = Rs. 10,000
Income Tax = Rs. 10,000
Combined leverage will be:

80.
A business firm has earned a net profit of Rs. 60,000 in a year. The total sales for the year were Rs. 1,20,000 and the debtors in the beginning and the end of the year were Rs. 40,000 and Rs. 30,000 respectively. The cash flow from operation was