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.
The definition of accounting will bring out the following functions:
1. Classifying
2. Interpreting
3. Recording
4. Summarising
The correct sequence of these functions is

A. 3, 1, 4, 2

B. 3, 1, 2, 4

C. 4, 1, 3, 2

D. 1, 4, 3, 2

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92.
Which one of the following is not the object of preparing Funds Flow Statement?

A. To show the results of current financial management

B. To show how general expansion on business has been financed

C. To show the earnings of the business over a period of time

D. To illustrate the relationship between profits from operations on the one hand and raising of new capital or contracting term loan on the other

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93.
In the absence of specific direction cash paid by a new partner to purchase his share of goodwill, will be apportioned by the old partners in

A. their old profit sharing ratio

B. their sacrificing ratio

C. their capital ratio

D. none of the above

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94.
Generally accepted basis of Valuation of a fixed asset is:

A. Replacement cost

B. Net realisable value

C. Historical cost less depreciation

D. Cost or market value whichever is lower

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95.
Increasing trend in general pricelevelis known as

A. depreciation

B. inflation

C. profit

D. pricing

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96.
In the absence of any agreement to the contrary, the partners have to share profits:

A. In the ratio of their contribution to the capital of the firm

B. In the ratio of time devoted by them to business

C. In the ratio of sales effected by each of them

D. In equal proportion

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97.
Which of the following accounts should be credited if a debt becomes irrecoverable?

A. Profit and loss a/c

B. Debtors a/c

C. Bad debs a/c

D. Sales a/c

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98.
From investor's point of view, the cost of capital is:

A. Interest Rate

B. Market Value

C. Yield of Capital Sacrifice

D. Stock Exchange Value

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99.
Which of the following items will have a debit balance:

A. Income received in advance

B. Bank loan

C. Prepaid insurance premium

D. Reserve for doubtful debts

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100.
Capital structure ratio

A. Equity : Preference

B. Equity : Reserve

C. Equity : Debt

D. Long term debt : Short term debt

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Accounting MCQ Questions and Solutions with Explanations | Commerce

91. The definition of accounting will bring out the following functions: 1. Classifying 2. Interpreting 3. Recording 4. Summarising The correct sequence of these functions is

Answer & Solution

92. Which one of the following is not the object of preparing Funds Flow Statement?

Answer & Solution

93. In the absence of specific direction cash paid by a new partner to purchase his share of goodwill, will be apportioned by the old partners in

Answer & Solution

94. Generally accepted basis of Valuation of a fixed asset is:

Answer & Solution

95. Increasing trend in general pricelevelis known as

Answer & Solution

96. In the absence of any agreement to the contrary, the partners have to share profits:

Answer & Solution

97. Which of the following accounts should be credited if a debt becomes irrecoverable?

Answer & Solution

98. From investor's point of view, the cost of capital is:

Answer & Solution

99. Which of the following items will have a debit balance:

Answer & Solution

100. Capital structure ratio

Answer & Solution

Read More Section(Accounting)

91.
The definition of accounting will bring out the following functions:
1. Classifying
2. Interpreting
3. Recording
4. Summarising
The correct sequence of these functions is

92.
Which one of the following is not the object of preparing Funds Flow Statement?

93.
In the absence of specific direction cash paid by a new partner to purchase his share of goodwill, will be apportioned by the old partners in

94.
Generally accepted basis of Valuation of a fixed asset is:

95.
Increasing trend in general pricelevelis known as

96.
In the absence of any agreement to the contrary, the partners have to share profits:

97.
Which of the following accounts should be credited if a debt becomes irrecoverable?

98.
From investor's point of view, the cost of capital is:

99.
Which of the following items will have a debit balance:

100.
Capital structure ratio