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.
On 1^st January, 1996 the stock was valued at Rs. 7,000. During January the purchases of the stock amounted to Rs. 23,000 and the cost of sales during the same period amounted to Rs. 21,000. What had been the value of the stock on 31^st January, 1996:

A. Rs. 7,000

B. Rs. 5,000

C. Rs. 2,000

D. Rs. 9,000

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62.
What is the main objective of financial accounting?

A. Profit and loss account only

B. Balance sheet only

C. Both profit and loss account and balance sheet

D. Trial balance only

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63.
For assessing the firms efficiency of operation,we need to analyse the combined effect of which of the following pairs of ratios:

A. Debt-to-net worth ratio and the Interest coverage ratio

B. The current ratio and the inventory-turnover ratio

C. Earnings per share and the coverage ratio

D. The Net Profit margin and the net operating profit rate of return

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64.
Non-Trading Institutions prepare:

A. Trading Account

B. Trading, Profit and Loss Account

C. Income & Expenditure Account

D. None of the above

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65.
Short working means

A. Excess of minimum rent over royalty

B. Excess of royalty over minimum rent

C. Surplus of royalty

D. Excess of actual rent over minimum rent

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66.
Match the following.

List-I List-II

a. After reissue of forfeited shares the balance of share forfeiture account is transferred to . . . . . . . . 1. Assets

b. Bonus issue is made out of . . . . . . . . 2. Free reserve

c. Debentures secured by a charge on . . . . . . . . are termed as secured debentures. 3. Accumulated profits

d. Workmen's compensation fund is . . . . . . . . to extent there is no compensation payable. 4. Capital Reserve A/c

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

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

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

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

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67.
The part of share capital, which can be called up only on the winding up of a company, is called:

A. authorised

B. called up capital

C. winding up capital

D. reserve capital

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68.
Depreciation refers to:

A. Fixed assets

B. Goodwill

C. Floating assets

D. All the three

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69.
A company has spent Rs. 20,000 on painting of its building. It should be recorded as

A. Revenue expenditure

B. Capital expenditure

C. Personal expenditure

D. Deferred revenue expenditure

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70.
A new partner brings in cash as his share of goodwill, this amount will be distributed among old partners in:

A. Old profit sharing ratio

B. Equal ratio

C. Ratio of capitals

D. Sacrifice ratio

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1 2 3 4 5 6 7 8 9 10

List-I	List-II
a. After reissue of forfeited shares the balance of share forfeiture account is transferred to . . . . . . . .	1. Assets
b. Bonus issue is made out of . . . . . . . .	2. Free reserve
c. Debentures secured by a charge on . . . . . . . . are termed as secured debentures.	3. Accumulated profits
d. Workmen's compensation fund is . . . . . . . . to extent there is no compensation payable.	4. Capital Reserve A/c

Accounting MCQ Questions and Solutions with Explanations | Commerce

61. On 1st January, 1996 the stock was valued at Rs. 7,000. During January the purchases of the stock amounted to Rs. 23,000 and the cost of sales during the same period amounted to Rs. 21,000. What had been the value of the stock on 31st January, 1996:

Answer & Solution

62. What is the main objective of financial accounting?

Answer & Solution

63. For assessing the firms efficiency of operation,we need to analyse the combined effect of which of the following pairs of ratios:

Answer & Solution

64. Non-Trading Institutions prepare:

Answer & Solution

65. Short working means

Answer & Solution

Answer & Solution

67. The part of share capital, which can be called up only on the winding up of a company, is called:

Answer & Solution

68. Depreciation refers to:

Answer & Solution

69. A company has spent Rs. 20,000 on painting of its building. It should be recorded as

Answer & Solution

70. A new partner brings in cash as his share of goodwill, this amount will be distributed among old partners in:

Answer & Solution

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61.
On 1^st January, 1996 the stock was valued at Rs. 7,000. During January the purchases of the stock amounted to Rs. 23,000 and the cost of sales during the same period amounted to Rs. 21,000. What had been the value of the stock on 31^st January, 1996:

62.
What is the main objective of financial accounting?

63.
For assessing the firms efficiency of operation,we need to analyse the combined effect of which of the following pairs of ratios:

64.
Non-Trading Institutions prepare:

65.
Short working means

67.
The part of share capital, which can be called up only on the winding up of a company, is called:

68.
Depreciation refers to:

69.
A company has spent Rs. 20,000 on painting of its building. It should be recorded as

70.
A new partner brings in cash as his share of goodwill, this amount will be distributed among old partners in: