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

41.
A budget which provides an estimated profit and loss account and a summary of all functional budgets is known as

A. Capital budget

B. Sales budget

C. Master budget

D. Flexible budget

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42.
Amalgamate adjustment account is opened in the books of transferee company to incorporate

A. the assets of the transferor company

B. the liabilities of the transferor company

C. the statutory reserves of the transferor company

D. the non-statutory reserves of the transferor company

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43.
The capital of firm is Rs. 80,000. The normal rate of return is 7.5%. If the profit earned by the firm during the last five years is Rs. 8,000, Rs. 9000, Rs. 7000, Rs. 8,500 and Rs. 10,000 then the super profit of the firm will be.

A. Rs. 2,000

B. Rs. 2,500

C. Rs. 3,000

D. Rs. 3,500

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44.
When existing companies take over the business of another company or companies, it is known as

A. Amalgamation

B. Internal reconstruction

C. External reconstruction

D. Absorption

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45.
The principle that "an accountant should not anticipate profits, but must provide for all losses" is known as:

A. The realisation concept

B. The consistency concept

C. The conservatism concept

D. The materiality concept

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46.
Match the following.

List-I List-II

a. Materiality concept 1. The same accounting method used by a firm from one period to another

b. Going concern concept 2. An inappropriate assumption of a firm being bankrupT

c. Historical cost concept 3. A normal basis used for accounting assets

d. Consistency concept 4. Relates to the importance of an item or event

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

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

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

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

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47.
When closing stock is included in the trial balance. It is to be recorded only in?

A. Trading account

B. Profit & loss account

C. Profit & loss appropriation account

D. Sales account

E. Balance sheet

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48.
Average profit of a firm is Rs. 9,000. Firm's capital is Rs. 60,000 and normal return on business is expected at 10%. The goodwill by capitalisation method will be:

A. Rs. 30,000

B. Rs. 20,000

C. Rs. 25,000

D. Rs. 40,000

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49.
Right shares refers to those shares which are

A. Issued to promoters of company

B. Issued to sellers of company

C. Issued to directors of company

D. Issued to existing shareholders of company

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50.
The minimum share application money is

A. 10% of the issue price of shares

B. Rs. 1 per share

C. 15% of the facevalue of shares

D. 5% of the facevalue of shares

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1 2 3 4 5 6 7 8 9 10

List-I	List-II
a. Materiality concept	1. The same accounting method used by a firm from one period to another
b. Going concern concept	2. An inappropriate assumption of a firm being bankrupT
c. Historical cost concept	3. A normal basis used for accounting assets
d. Consistency concept	4. Relates to the importance of an item or event

Accounting MCQ Questions and Solutions with Explanations | Commerce

41. A budget which provides an estimated profit and loss account and a summary of all functional budgets is known as

Answer & Solution

42. Amalgamate adjustment account is opened in the books of transferee company to incorporate

Answer & Solution

43. The capital of firm is Rs. 80,000. The normal rate of return is 7.5%. If the profit earned by the firm during the last five years is Rs. 8,000, Rs. 9000, Rs. 7000, Rs. 8,500 and Rs. 10,000 then the super profit of the firm will be.

Answer & Solution

44. When existing companies take over the business of another company or companies, it is known as

Answer & Solution

45. The principle that "an accountant should not anticipate profits, but must provide for all losses" is known as:

Answer & Solution

Answer & Solution

47. When closing stock is included in the trial balance. It is to be recorded only in?

Answer & Solution

48. Average profit of a firm is Rs. 9,000. Firm's capital is Rs. 60,000 and normal return on business is expected at 10%. The goodwill by capitalisation method will be:

Answer & Solution

49. Right shares refers to those shares which are

Answer & Solution

50. The minimum share application money is

Answer & Solution

Read More Section(Accounting)

41.
A budget which provides an estimated profit and loss account and a summary of all functional budgets is known as

42.
Amalgamate adjustment account is opened in the books of transferee company to incorporate

43.
The capital of firm is Rs. 80,000. The normal rate of return is 7.5%. If the profit earned by the firm during the last five years is Rs. 8,000, Rs. 9000, Rs. 7000, Rs. 8,500 and Rs. 10,000 then the super profit of the firm will be.

44.
When existing companies take over the business of another company or companies, it is known as

45.
The principle that "an accountant should not anticipate profits, but must provide for all losses" is known as:

47.
When closing stock is included in the trial balance. It is to be recorded only in?

48.
Average profit of a firm is Rs. 9,000. Firm's capital is Rs. 60,000 and normal return on business is expected at 10%. The goodwill by capitalisation method will be:

49.
Right shares refers to those shares which are

50.
The minimum share application money is