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

21.
Match the items of List-I with items of List-Il and indicate of correct matching

List-I List-II

a. Principle of separate entity 1. Valuing plant and machinery at cost less depreciation

b. Principle of conservatism 2. Recording punctuality and honesty of an organization's employees

c. Principle of money measurement 3. Capital contributed by proprietor is shown as liability in the balance sheet

d. Historical cost concept 4. Valuing inventories at cost or market price whichever is less

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

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

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

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

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22.
Which one of the following statements is not true:

A. Both shares and debentures of a company can be issued at a discount up to a maximum of 10%

B. Allotment of shares is done only when minimum subscription is received

C. Preference shares have priority over equity shares with regard to distribution of income

D. The Company cannot repurchase its own equity shares

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23.
What is not prepared in final accounts of Not for profit organisation?

A. Receipt and payment account

B. Income and Expenditure account

C. Trading A/c

D. Balance sheet

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24.
Given:
Sales = Rs. 1,00,000
Variable cost = Rs. 50,000
Interest = Rs. 5,000
Fixed cost = Rs. 25,000 Operating leverage will be

A. 4

B. 2

C. 6

D. 1.8

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25.
Obsolescence means decline in the value due to:

A. Fall in market price

B. Physical wear and tear

C. Innovation

D. Efflux of time

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26.
X and Y are partners sharing profits and losses in the ratio of 3 : 2 (X's capital is Rs. 30,000 and Y's capital is Rs. 15,000). They admitted Z agreed to give $${\frac{1}{5}^{{\text{th}}}}$$ share of profits to him. How much Z should bring in towards his capital?

A. Rs. 9,000

B. Rs. 11,250

C. Rs. 12,000

D. Rs. 14,500

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27.
Gamer vs Murray rule requires

A. that the solvent partners should bear the loss arising due to insolvency of a partner in their last agreed capital ratio

B. that the solvent partners should bring in cash equal to their respective shares of the loss on realisation

C. Both A and B

D. None of the above

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28.
Which of the following parties cannot be granted shares or share optionsby the entity?

A. Executive director

B. Supplier of goods and services

C. Chief Accountant

D. None of the above

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29.
Total of the two sides of account and to find out the difference is called

A. Totalling

B. Trialing

C. Balancing

D. Analysing

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30.
On 1^st January, 2005 the plant and machinery was valued at Rs. 80,000 and on 31^st December, 2005 it was valued at Rs. 1,20,000. Rs. 10,000 was written off as depreciation during the year. This will result in:

A. Source of Funds Rs. 30,000

B. Application of funds Rs. 50,000

C. Application of funds Rs. 40,000

D. Source of fund Rs. 50,000

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1 2 3 4 5 6 7 8 9 10

List-I	List-II
a. Principle of separate entity	1. Valuing plant and machinery at cost less depreciation
b. Principle of conservatism	2. Recording punctuality and honesty of an organization's employees
c. Principle of money measurement	3. Capital contributed by proprietor is shown as liability in the balance sheet
d. Historical cost concept	4. Valuing inventories at cost or market price whichever is less

Accounting MCQ Questions and Solutions with Explanations | Commerce

Answer & Solution

22. Which one of the following statements is not true:

Answer & Solution

23. What is not prepared in final accounts of Not for profit organisation?

Answer & Solution

24. Given: Sales = Rs. 1,00,000 Variable cost = Rs. 50,000 Interest = Rs. 5,000 Fixed cost = Rs. 25,000 Operating leverage will be

Answer & Solution

25. Obsolescence means decline in the value due to:

Answer & Solution

26. X and Y are partners sharing profits and losses in the ratio of 3 : 2 (X's capital is Rs. 30,000 and Y's capital is Rs. 15,000). They admitted Z agreed to give $${\frac{1}{5}^{{\text{th}}}}$$ share of profits to him. How much Z should bring in towards his capital?

Answer & Solution

27. Gamer vs Murray rule requires

Answer & Solution

28. Which of the following parties cannot be granted shares or share optionsby the entity?

Answer & Solution

29. Total of the two sides of account and to find out the difference is called

Answer & Solution

30. On 1st January, 2005 the plant and machinery was valued at Rs. 80,000 and on 31st December, 2005 it was valued at Rs. 1,20,000. Rs. 10,000 was written off as depreciation during the year. This will result in:

Answer & Solution

Read More Section(Accounting)

22.
Which one of the following statements is not true:

23.
What is not prepared in final accounts of Not for profit organisation?

24.
Given:
Sales = Rs. 1,00,000
Variable cost = Rs. 50,000
Interest = Rs. 5,000
Fixed cost = Rs. 25,000 Operating leverage will be

25.
Obsolescence means decline in the value due to:

26.
X and Y are partners sharing profits and losses in the ratio of 3 : 2 (X's capital is Rs. 30,000 and Y's capital is Rs. 15,000). They admitted Z agreed to give $${\frac{1}{5}^{{\text{th}}}}$$ share of profits to him. How much Z should bring in towards his capital?

27.
Gamer vs Murray rule requires

28.
Which of the following parties cannot be granted shares or share optionsby the entity?

29.
Total of the two sides of account and to find out the difference is called

30.
On 1^st January, 2005 the plant and machinery was valued at Rs. 80,000 and on 31^st December, 2005 it was valued at Rs. 1,20,000. Rs. 10,000 was written off as depreciation during the year. This will result in: