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

11.
Which one of the following is capital expenditure?

A. Cost of advertisement

B. Purchase of delivery van

C. Purchase of raw material

D. Purchase of machine oil

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12.
Following are the events which generally happen in the life of a public limited company
1. Public issue of shares (IPO)
2. Firm Incorporation
3. Preliminary expenditures
4. Issue of equity shares to promoters of the company
Choose the correct sequence (chronological order) of the envets from the options given below:

A. 1, 2, 3, 4

B. 2, 3, 4, 1

C. 3, 2, 1, 4

D. 3, 2, 4, 1

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13.
The cost of a machine is Rs. 70,000. Its life span is 10 years, after which its expected residual price will be Rs. 5,000. Based on straight line method, the depreciation for first four year will be

A. Rs. 28,000

B. Rs. 26,000

C. Rs. 22,000

D. Rs. 20,000

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14.
Funds' in the fund flow statements means-

A. Cash

B. Current assets

C. Current liability

D. Working capital

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15.
Interest on capital is added with

A. Capital

B. Profit

C. Loss

D. Donation

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16.
X and Y agree to form a partnership. X contributes Rs. 5,000 in assets and devotes one half time to partnership while Y contribution Rs. 20,000 in cash and devotes full time to the firm. How will the partners share the profits of the firm:

A. 1 : 4

B. 1 : 3

C. 1 : 2

D. 1 : 1

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17.
Assertion (A): Accounting information refers to only events concerned with a business firm.
Reason (R): Accounting information is presented in financial statements.

A. (A) is correct, but (R) is incorrect

B. Both (A) and (R) are correct

C. (A) is incorrect, but (R) is correct

D. Both (A) and (R) are incorrect

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18.
Goodwill account is

A. Personal account

B. Real account

C. Nominal account

D. None of the above

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19.
In liquidation proceedings of a company certain lists are attached with the statement of affairs of the company. Match list-I with list-II and select your answer:

List-I List-II

a. List E 1. Preference shareholders

b. List F 2. Equity shareholders

c. List G 3. Deficiency account

d. List H 4. Unsecured creditors

A. a-4, b-1, c-2, d-3

B. a-1, b-3, c-4, d-2

C. a-2, b-3, c-1, d-4

D. a-4, b-2, c-1, d-3

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20.
Subscription received in advance by a club will be shown on:

A. Asset side of Balance sheet

B. Liability side of Balance sheet

C. Credit side of Income and Expenditure A/c

D. Debit side of Income and Expenditure A/c

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1 2 3 4 5 6 7 8 9 10

List-I	List-II
a. List E	1. Preference shareholders
b. List F	2. Equity shareholders
c. List G	3. Deficiency account
d. List H	4. Unsecured creditors

Accounting MCQ Questions and Solutions with Explanations | Commerce

11. Which one of the following is capital expenditure?

Answer & Solution

Answer & Solution

13. The cost of a machine is Rs. 70,000. Its life span is 10 years, after which its expected residual price will be Rs. 5,000. Based on straight line method, the depreciation for first four year will be

Answer & Solution

14. Funds' in the fund flow statements means-

Answer & Solution

15. Interest on capital is added with

Answer & Solution

16. X and Y agree to form a partnership. X contributes Rs. 5,000 in assets and devotes one half time to partnership while Y contribution Rs. 20,000 in cash and devotes full time to the firm. How will the partners share the profits of the firm:

Answer & Solution

17. Assertion (A): Accounting information refers to only events concerned with a business firm. Reason (R): Accounting information is presented in financial statements.

Answer & Solution

18. Goodwill account is

Answer & Solution

Answer & Solution

20. Subscription received in advance by a club will be shown on:

Answer & Solution

Read More Section(Accounting)

11.
Which one of the following is capital expenditure?

13.
The cost of a machine is Rs. 70,000. Its life span is 10 years, after which its expected residual price will be Rs. 5,000. Based on straight line method, the depreciation for first four year will be

14.
Funds' in the fund flow statements means-

15.
Interest on capital is added with

16.
X and Y agree to form a partnership. X contributes Rs. 5,000 in assets and devotes one half time to partnership while Y contribution Rs. 20,000 in cash and devotes full time to the firm. How will the partners share the profits of the firm:

17.
Assertion (A): Accounting information refers to only events concerned with a business firm.
Reason (R): Accounting information is presented in financial statements.

18.
Goodwill account is

20.
Subscription received in advance by a club will be shown on: