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

81.
Debtors = Rs. 8,400
Reserve for bad debts = Rs. 400
Cost of sales = Rs. 36,000
Profit = Sales of 40%
Debt collection period is:

A. 45 days

B. 49 days

C. 75 days

D. 86 days

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82.
Which of the following is/are feature(s) of equity share capital

A. dividend is payable only if company has earned profit

B. dividend become payable only if such payment has been recommended by board of directors and passed by the Annual General Meeting of Company

C. both, dividend is payable only if company has earned profit and dividend become payable only if such payment has been recommended by board of director and passed by the Annual General Meeting of company

D. None of these

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83.
The convention of conservatism implies that:

A. Expected future losses must be provided for

B. Revenue must not be recognised unless it is accrued

C. Both the above A and B

D. None of the above

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84.
Redeemable Preference Shares of Rs. 2,00,00 are to be redeemed at par for which purpose fresh Equity Shares of Rs. 80,000 are issued at a discount of 10%. What amount should be transferred to Capital Redemption Reserve Accounts?

A. Rs. 72,000

B. Rs. 1,20,000

C. Rs. 1,28,000

D. Rs. 2,00,000

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85.
Which one of the following is Activity Ratio?

A. Net Profit Ratio

B. Current Ratio

C. Debtor Turnover Ratio

D. None of these

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86.
If cost is Rs. 48,000 and gross profit is 20% on sales then calculate amount of gross profit?

A. Rs. 12,000

B. Rs. 60,000

C. Rs. 8,000

D. Rs. 24,000

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87.
The depreciation of fixed assets is computed on their

A. Book value

B. Market value

C. Realizable value

D. Scrap value

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88.
A company wants to redeem 9% 450 debentures of the face value of Rs. 100 per debenture at a premium of 10%. How many shares of the face value of Rs. 10 is to be issued if they are issued at a premium of 10%:

A. 4,000 share

B. 4,500 share

C. 5,000 share

D. 5.500 share

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89.
Capitalization method of valuation is used for the valuation of

A. Shares only

B. Goodwill only

C. Shares and Goodwill both

D. Fixed assets only

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90.
The current account of a partner

A. may have a debit or a credit balance

B. will always have a debit balance

C. will always have a credit balance

D. will never have a balance

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Accounting MCQ Questions and Solutions with Explanations | Commerce

81. Debtors = Rs. 8,400 Reserve for bad debts = Rs. 400 Cost of sales = Rs. 36,000 Profit = Sales of 40% Debt collection period is:

Answer & Solution

82. Which of the following is/are feature(s) of equity share capital

Answer & Solution

83. The convention of conservatism implies that:

Answer & Solution

84. Redeemable Preference Shares of Rs. 2,00,00 are to be redeemed at par for which purpose fresh Equity Shares of Rs. 80,000 are issued at a discount of 10%. What amount should be transferred to Capital Redemption Reserve Accounts?

Answer & Solution

85. Which one of the following is Activity Ratio?

Answer & Solution

86. If cost is Rs. 48,000 and gross profit is 20% on sales then calculate amount of gross profit?

Answer & Solution

87. The depreciation of fixed assets is computed on their

Answer & Solution

88. A company wants to redeem 9% 450 debentures of the face value of Rs. 100 per debenture at a premium of 10%. How many shares of the face value of Rs. 10 is to be issued if they are issued at a premium of 10%:

Answer & Solution

89. Capitalization method of valuation is used for the valuation of

Answer & Solution

90. The current account of a partner

Answer & Solution

Read More Section(Accounting)

81.
Debtors = Rs. 8,400
Reserve for bad debts = Rs. 400
Cost of sales = Rs. 36,000
Profit = Sales of 40%
Debt collection period is:

82.
Which of the following is/are feature(s) of equity share capital

83.
The convention of conservatism implies that:

84.
Redeemable Preference Shares of Rs. 2,00,00 are to be redeemed at par for which purpose fresh Equity Shares of Rs. 80,000 are issued at a discount of 10%. What amount should be transferred to Capital Redemption Reserve Accounts?

85.
Which one of the following is Activity Ratio?

86.
If cost is Rs. 48,000 and gross profit is 20% on sales then calculate amount of gross profit?

87.
The depreciation of fixed assets is computed on their

88.
A company wants to redeem 9% 450 debentures of the face value of Rs. 100 per debenture at a premium of 10%. How many shares of the face value of Rs. 10 is to be issued if they are issued at a premium of 10%:

89.
Capitalization method of valuation is used for the valuation of

90.
The current account of a partner