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

31.
ABC Ltd has declared 40% dividend. What does it mean?

A. The company has declared 40% of net profit as a dividend

B. The company has declared 40% of profits after tax as a dividend

C. The company will provide a 40% dividend on issued capital

D. The company will provide a 40% dividend on paid-up capital

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32.
Assets which have a fixed content and the value of asset goes down as the contents are taken out are called

A. intangible assets

B. fictitious assets

C. wasting assets

D. floating assets

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33.
A company can purchase, its own:

A. Equity share

B. Preference share

C. Debentures

D. All of the above

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34.
The technique of performance appraisal management is

A. To motivate the employees

B. To find out the qualifications of the employeess

C. Promotion of employees

D. To find out the difficulties of the employee

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35.
Statement I If an entity holds directly/indirectly 50% or more of the voting power of the investee, it is presumed thus such entity has significant influence.
Statement II AS-24 deals with related party disclosures.
Which of the following is/are correct?

A. Only statement I is true

B. Only statement II is true

C. Both statements are true

D. Both statements are false

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36.
The inter-se-relations of the partners between themselves is that of

A. family friends

B. business associates

C. agents of each other

D. close relatives

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37.
What items of inventories are outside the scope of AS-2?
1. Work-in-progress arising under construction contracts.
2. Raw materials including maintenance supplies.
3. Share, debentures held as stock-in-trade.
4. Machinery spares exclusively used with fixed assets.
Select the correct answer:

A. 1, 3 and 4

B. 1, 2 and 4

C. 2, 3 and 4

D. All of these

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38.
A club received the following donation in the year ending 31^st March, 2004.

31^st March, 2003 31^st March, 2004

Outstanding Donation Rs. 19,500 Rs. 25,500

Advance Donation Rs. 12,800 Rs. 9,500

The donation received in the year 2003 - 04 were Rs. 2,45,000. The club donation income for 2003 - 04 was

A. Rs. 2,63,800

B. Rs. 2,80,000

C. Rs. 2,47,700

D. Rs. 2,84,000

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39.
Double entry system' refers to-

A. Every business transaction has two aspects

B. For every transaction, two accounts is prepared

C. Every business transaction is written twice

D. All of the above

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40.
Goodwill in a partnership firm can be valued at the time of

A. admission

B. retirement

C. death

D. All of these

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1 2 3 4 5 6 7 8 9 10

	31^st March, 2003	31^st March, 2004
Outstanding Donation	Rs. 19,500	Rs. 25,500
Advance Donation	Rs. 12,800	Rs. 9,500

Accounting MCQ Questions and Solutions with Explanations | Commerce

31. ABC Ltd has declared 40% dividend. What does it mean?

Answer & Solution

32. Assets which have a fixed content and the value of asset goes down as the contents are taken out are called

Answer & Solution

33. A company can purchase, its own:

Answer & Solution

34. The technique of performance appraisal management is

Answer & Solution

35. Statement I If an entity holds directly/indirectly 50% or more of the voting power of the investee, it is presumed thus such entity has significant influence. Statement II AS-24 deals with related party disclosures. Which of the following is/are correct?

Answer & Solution

36. The inter-se-relations of the partners between themselves is that of

Answer & Solution

37. What items of inventories are outside the scope of AS-2? 1. Work-in-progress arising under construction contracts. 2. Raw materials including maintenance supplies. 3. Share, debentures held as stock-in-trade. 4. Machinery spares exclusively used with fixed assets. Select the correct answer:

Answer & Solution

Answer & Solution

39. Double entry system' refers to-

Answer & Solution

40. Goodwill in a partnership firm can be valued at the time of

Answer & Solution

Read More Section(Accounting)

31.
ABC Ltd has declared 40% dividend. What does it mean?

32.
Assets which have a fixed content and the value of asset goes down as the contents are taken out are called

33.
A company can purchase, its own:

34.
The technique of performance appraisal management is

35.
Statement I If an entity holds directly/indirectly 50% or more of the voting power of the investee, it is presumed thus such entity has significant influence.
Statement II AS-24 deals with related party disclosures.
Which of the following is/are correct?

36.
The inter-se-relations of the partners between themselves is that of

37.
What items of inventories are outside the scope of AS-2?
1. Work-in-progress arising under construction contracts.
2. Raw materials including maintenance supplies.
3. Share, debentures held as stock-in-trade.
4. Machinery spares exclusively used with fixed assets.
Select the correct answer:

39.
Double entry system' refers to-

40.
Goodwill in a partnership firm can be valued at the time of