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

91.
Those adjustment expenses which are deducted from related expense and are shown as assets are called

A. Accrued

B. Prepaid expense

C. Outstanding expense

D. Capital expense

Answer & Solution Discuss in Board Save for Later

92.
Financial Leverage is measured by:

A. $$\frac{{{\text{EBIT}}}}{{{\text{EAT}}}}$$

B. $$\frac{{{\text{EBIT}}}}{{{\text{EBT}}}}$$

C. $$\frac{{{\text{EAIT}}}}{{{\text{EBT}}}}$$

D. $$\frac{{\text{C}}}{{{\text{EBIT}}}}$$

Answer & Solution Discuss in Board Save for Later

93.
The salary paid to a clerk Ramesh should be credited to:

A. Ramesh's Account

B. Salary Account

C. Cash Account

D. Profit and Loss Account

Answer & Solution Discuss in Board Save for Later

94.
If the amalgamation is in the . . . . . . . ., the general reserveor profit and loss A/c balance will not be shown in the balance sheet.

A. Form of merger

B. Form of purchase

C. Net assets method

D. Consideration method

Answer & Solution Discuss in Board Save for Later

95.
Owners equity stands for

A. Fixed assets - Flood liabilities

B. Fixed assets - Current liabilities

C. Current assets - Fixed liabilities

D. Total assets - Total outside liabilities

Answer & Solution Discuss in Board Save for Later

96.
On 31^st December 2004, the assets and liabilities of a firm were Rs. 40,000 and Rs. 30,000 respectively. The firm was dissolved and a sum of 60 paisa per rupee was paid to the creditors. Profit/loss on realisation-

A. Rs. 10,000

B. Rs. 12,000

C. Rs. 18,000

D. Rs. 22,000

Answer & Solution Discuss in Board Save for Later

97.
Identify the true statement of the following.
1. Balance sheet is always prepared from the point of view of the business, but not from, that of the owners.
2. The financial relationship of the business to its owners is shown in the balance sheet.
3. Balance sheet is always related to a period of time.

A. Both 1 and 2

B. Both 2 and 3

C. Both 1 and 3

D. All of the above

Answer & Solution Discuss in Board Save for Later

98.
An asset was purchased for Rs. 10,00,000 with the down payment of Rs. 2,00,000 and bills accepted for Rs. 8,00,000. What is the effect on the total asset and total liabilities in the balance sheet?

A. Assets increased by Rs. 8,00,000 and liabilities decreased by Rs. 8,00,000

B. Assets decreased by Rs. 8,00,000 and liabilities increased by Rs. 8,00,000

C. Assets increased by Rs. 10,00,000 and liabilities increased by Rs. 8,00,000

D. Assets increased by Rs. 8,00,000 and liabilities increased by Rs. 8,00,000

Answer & Solution Discuss in Board Save for Later

99.
The cost of three small files (of Rs. 4 each) was charged to expenses when purchased even though they had useful life of several years. This was done according to the

A. cost principle

B. conservatism principle

C. disclosure principle

D. materiality principle

Answer & Solution Discuss in Board Save for Later

100.
If goodwill account is already opened in the books and new partner brings his share of goodwill in cash, then accounting effect would be

A. Old goodwill account will be closed

B. Goodwill bought by new partner will be distributed between old partners in sacrificing ratio

C. A and B both

D. None of the above

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

91. Those adjustment expenses which are deducted from related expense and are shown as assets are called

Answer & Solution

92. Financial Leverage is measured by:

Answer & Solution

93. The salary paid to a clerk Ramesh should be credited to:

Answer & Solution

94. If the amalgamation is in the . . . . . . . ., the general reserveor profit and loss A/c balance will not be shown in the balance sheet.

Answer & Solution

95. Owners equity stands for

Answer & Solution

96. On 31st December 2004, the assets and liabilities of a firm were Rs. 40,000 and Rs. 30,000 respectively. The firm was dissolved and a sum of 60 paisa per rupee was paid to the creditors. Profit/loss on realisation-

Answer & Solution

Answer & Solution

98. An asset was purchased for Rs. 10,00,000 with the down payment of Rs. 2,00,000 and bills accepted for Rs. 8,00,000. What is the effect on the total asset and total liabilities in the balance sheet?

Answer & Solution

99. The cost of three small files (of Rs. 4 each) was charged to expenses when purchased even though they had useful life of several years. This was done according to the

Answer & Solution

100. If goodwill account is already opened in the books and new partner brings his share of goodwill in cash, then accounting effect would be

Answer & Solution

Read More Section(Accounting)

91.
Those adjustment expenses which are deducted from related expense and are shown as assets are called

92.
Financial Leverage is measured by:

93.
The salary paid to a clerk Ramesh should be credited to:

94.
If the amalgamation is in the . . . . . . . ., the general reserveor profit and loss A/c balance will not be shown in the balance sheet.

95.
Owners equity stands for

96.
On 31^st December 2004, the assets and liabilities of a firm were Rs. 40,000 and Rs. 30,000 respectively. The firm was dissolved and a sum of 60 paisa per rupee was paid to the creditors. Profit/loss on realisation-

98.
An asset was purchased for Rs. 10,00,000 with the down payment of Rs. 2,00,000 and bills accepted for Rs. 8,00,000. What is the effect on the total asset and total liabilities in the balance sheet?

99.
The cost of three small files (of Rs. 4 each) was charged to expenses when purchased even though they had useful life of several years. This was done according to the

100.
If goodwill account is already opened in the books and new partner brings his share of goodwill in cash, then accounting effect would be