Accounting MCQ Questions and Solutions with Explanations

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91.
In a reconstruction scheme, the reduction of capital may take the form of

A. reducing the liability of the shareholders in respect of any unpaid amount on the shares held by them

B. paying off any paid-up share capital which is in excess of its requirement

C. cancelling any paid-up share capital, which is lost or unrepresented by available assets

D. all of the above

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92.
Which of the following is capital profit:

A. Premium paid on redemption of debentures

B. Profit on sale of shares held as stock in trade

C. Premium received on issue of shares

D. Dividend received on shares held as permanent investment

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93.
Which of the following practices is not in consonance with the convention of conservatism?

A. Creating provision for bad debts

B. Creating provision for discount on creditors

C. Creating provision for discount on debtors

D. Creating provision for tax

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94.
If net profit is Rs. 30,000 and non-cash charges are Rs. 10,000 then the funds from operations will be:

A. Rs. 30,000

B. Rs. 20,000

C. Rs. 40,000

D. None of the above

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95.
The Receipt and Payment Account of a club shows the following details of subscriptions:
Arrears Rs. 500, current Rs. 10,500 advance Rs. 800.
There are 1200 members each paying an annual subscription of Rs. 10. The amount of subscription to be credited to Income and Expenditure Account will be:

A. Rs. 11,000

B. Rs. 12,000

C. Rs. 12,500

D. Rs. 11,800

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96.
The word 'receivables' includes-

A. Trade creditors only

B. Trade debtors only

C. Trade debtors and bill receivable

D. Trade creditors and bill payable

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97.
On the admission of a new partner, any increase in the value of Buildings is credited to

A. Buildings Account

B. Profit and Loss Account

C. Revaluation Account

D. All Partner's Capital Account

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98.
The term, 'imprest system' is used in relation to:

A. Purchase Book

B. Sales Book

C. Cash Book

D. Petty Cash Book

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99.
Which one of the following pair is not correctly matched?

A. Profit and Loss A/c ⇔ Dividend received

B. Profit and Loss (Appropriation) A/c ⇔ Unclaimed Dividend

C. Balance Sheet (Liability side) ⇔ Share-Premium A/c

D. Balance Sheet ⇔ Preliminary Expenses (Assets side)

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100.
When a purchasing company pays purchase consideration, it will be debited to

A. Liquidator of selling company's account

B. Business purchase account

C. Assets account

D. None of the above

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Accounting MCQ Questions and Solutions with Explanations | Commerce

91. In a reconstruction scheme, the reduction of capital may take the form of

Answer & Solution

92. Which of the following is capital profit:

Answer & Solution

93. Which of the following practices is not in consonance with the convention of conservatism?

Answer & Solution

94. If net profit is Rs. 30,000 and non-cash charges are Rs. 10,000 then the funds from operations will be:

Answer & Solution

95. The Receipt and Payment Account of a club shows the following details of subscriptions: Arrears Rs. 500, current Rs. 10,500 advance Rs. 800. There are 1200 members each paying an annual subscription of Rs. 10. The amount of subscription to be credited to Income and Expenditure Account will be:

Answer & Solution

96. The word 'receivables' includes-

Answer & Solution

97. On the admission of a new partner, any increase in the value of Buildings is credited to

Answer & Solution

98. The term, 'imprest system' is used in relation to:

Answer & Solution

99. Which one of the following pair is not correctly matched?

Answer & Solution

100. When a purchasing company pays purchase consideration, it will be debited to

Answer & Solution

Read More Section(Accounting)

91.
In a reconstruction scheme, the reduction of capital may take the form of

92.
Which of the following is capital profit:

93.
Which of the following practices is not in consonance with the convention of conservatism?

94.
If net profit is Rs. 30,000 and non-cash charges are Rs. 10,000 then the funds from operations will be:

95.
The Receipt and Payment Account of a club shows the following details of subscriptions:
Arrears Rs. 500, current Rs. 10,500 advance Rs. 800.
There are 1200 members each paying an annual subscription of Rs. 10. The amount of subscription to be credited to Income and Expenditure Account will be:

96.
The word 'receivables' includes-

97.
On the admission of a new partner, any increase in the value of Buildings is credited to

98.
The term, 'imprest system' is used in relation to:

99.
Which one of the following pair is not correctly matched?

100.
When a purchasing company pays purchase consideration, it will be debited to