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

61.
Cumulative Preference Shareholders can claim unpaid dividend of earlier years as a matter of right only when:

A. There are sufficient profits

B. Company goes into winding up

C. There are sufficient liquid funds

D. Directors propose to pay dividend to equity shareholders before giving dividends to them

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62.
Which of the following is the final stage of accounting as a process of information?

A. Analysis and interpretation of information

B. Communication of information

C. Recording of data in books of accounts

D. Preparation of summary in form of financial statement

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63.
Which of the following transactions is of capital nature:

A. Purchase of a truck

B. Replacement of old tyres

C. Cost of repairing of truck

D. All the above

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64.
The final accounts of a manufacturing company generally include the following statements. Select the correct sequence in the which the statements are prepared
i. Balance sheet
ii. Manufacturing account
iii. Profit and loss account
iv. Trading account
v. Profit and loss appropriation account

A. i, ii, iii, iv, v

B. ii, iv, iii, v, i

C. v, ii, iv, iii, i

D. i, iv, iii, ii, v

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65.
Calculate the BEP in units from the following figures

Sales price Rs. 15/unit

Variable cost Rs. 8/unit

Fixed cost Rs. 14,000

Unit produced 6,000

A. 1,500

B. 2,000

C. 2,500

D. 3,000

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66.
Earning ratio shows the relationship between earning per share and what?

A. Net profit

B. Equity share capital/No of equity share

C. Market price per share

D. Dividend per share

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67.
If share of face value of Rs. 10 is sold at Rs. 12 then Rs. 2 will be regarded as

A. Premium

B. Discount

C. Gift

D. None of the above

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68.
Which of the following has the purpose of taking responsibility?

A. Aunthenticity

B. Fairness of recorded amount

C. Ownership

D. None of the above

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69.
The profit sharing ratio of ABC is $$\frac{1}{2},\,\frac{2}{5},\,\frac{1}{{10}}.$$ After retirement of A, remaining partner's ratio will be

A. 4 : 1

B. 5 : 1

C. 3 : 1

D. 2 : 1

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70.
The directors of company forfeited 1,000 shares of Rs. 10 each, Rs. 7.5 paid-up for non-payment of call money @ Rs. 2.5 per share, 700 of this shares are re-issued @ Rs. 7 per share. The amount transfer to Capital Reserve A/c would be

A. Rs. 2,500

B. Rs. 3,150

C. Rs. 3,500

D. Rs. 5,400

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1 2 3 4 5 6 7 8 9 10

Sales price	Rs. 15/unit
Variable cost	Rs. 8/unit
Fixed cost	Rs. 14,000
Unit produced	6,000

Accounting MCQ Questions and Solutions with Explanations | Commerce

61. Cumulative Preference Shareholders can claim unpaid dividend of earlier years as a matter of right only when:

Answer & Solution

62. Which of the following is the final stage of accounting as a process of information?

Answer & Solution

63. Which of the following transactions is of capital nature:

Answer & Solution

64. The final accounts of a manufacturing company generally include the following statements. Select the correct sequence in the which the statements are prepared i. Balance sheet ii. Manufacturing account iii. Profit and loss account iv. Trading account v. Profit and loss appropriation account

Answer & Solution

65. Calculate the BEP in units from the following figures Sales price Rs. 15/unit Variable cost Rs. 8/unit Fixed cost Rs. 14,000 Unit produced 6,000

Answer & Solution

66. Earning ratio shows the relationship between earning per share and what?

Answer & Solution

67. If share of face value of Rs. 10 is sold at Rs. 12 then Rs. 2 will be regarded as

Answer & Solution

68. Which of the following has the purpose of taking responsibility?

Answer & Solution

69. The profit sharing ratio of ABC is $$\frac{1}{2},\,\frac{2}{5},\,\frac{1}{{10}}.$$ After retirement of A, remaining partner's ratio will be

Answer & Solution

70. The directors of company forfeited 1,000 shares of Rs. 10 each, Rs. 7.5 paid-up for non-payment of call money @ Rs. 2.5 per share, 700 of this shares are re-issued @ Rs. 7 per share. The amount transfer to Capital Reserve A/c would be

Answer & Solution

Read More Section(Accounting)

61.
Cumulative Preference Shareholders can claim unpaid dividend of earlier years as a matter of right only when:

62.
Which of the following is the final stage of accounting as a process of information?

63.
Which of the following transactions is of capital nature:

64.
The final accounts of a manufacturing company generally include the following statements. Select the correct sequence in the which the statements are prepared
i. Balance sheet
ii. Manufacturing account
iii. Profit and loss account
iv. Trading account
v. Profit and loss appropriation account

65.
Calculate the BEP in units from the following figures

Sales price Rs. 15/unit

Variable cost Rs. 8/unit

Fixed cost Rs. 14,000

Unit produced 6,000

66.
Earning ratio shows the relationship between earning per share and what?

67.
If share of face value of Rs. 10 is sold at Rs. 12 then Rs. 2 will be regarded as

68.
Which of the following has the purpose of taking responsibility?

69.
The profit sharing ratio of ABC is $$\frac{1}{2},\,\frac{2}{5},\,\frac{1}{{10}}.$$ After retirement of A, remaining partner's ratio will be

70.
The directors of company forfeited 1,000 shares of Rs. 10 each, Rs. 7.5 paid-up for non-payment of call money @ Rs. 2.5 per share, 700 of this shares are re-issued @ Rs. 7 per share. The amount transfer to Capital Reserve A/c would be