Accounting MCQ Questions and Solutions with Explanations

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41.
Receipts and payments Account is a summary of:

A. Income and Expenditure Account

B. Cash Book

C. Balance Sheet

D. Bank Account

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42.
In what order, the following assets are shown in the balance sheet of a company?
i. Trade receivables
ii. Cash
iii. Furniture and fittings
iv. Investment in shares and debentures

A. ii, i, iv, iii

B. i, ii, iii, iv

C. iii, iv, i, ii

D. iv, iii, ii, i

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43.
In the context of dissolution of a firm, which of the following statements is true:

A. Dissolution of a firm automatically result in dissolution of a partnership

B. Only firm's assets can be used for payment of firm's liabilities

C. Partner's loan is transferred to the Realisation account with other liabilities of the firm

D. A loan from partner's wife is transferred to the partner's loan account

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44.
Under Royalty Accounts, if there is strike for a certain period then:

A. Royalty is reduced proportionately

B. Short workings is reduced proportionately

C. Minimum rent is reduced proportionately

D. All of the above

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45.
Sale proceeds of grass in case of a sport club is:

A. a capital receipt

B. an asset

C. a revenue receipt

D. None of the above

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46.
"Higher the ratio, the more favourable it is".
This statement does not apply with respect to

A. Stock Turnover Ratio

B. Net Profit Ratio

C. Gross Profit Ratio

D. Operating Ratio

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47.
The Gross Working Capital means

A. Total Current Assets + Total Current Liabilities

B. Total Current Assets - Total Current Liabilities

C. Total of Current Assets

D. None of these

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48.
Cash discount allowed to a debtor should be credited to

A. Discount Account

B. Customer's Account

C. Sales Account

D. Purchases Account

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49.
Insurance expenses paid to bring an equipment from the place of purchase to the place of installation is a type of

A. Revenue expenditure

B. Capital expenditure

C. Deferred revenue expenditure

D. Operating expense

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50.
In case of Installment Payment System, which one of the following statements is not true?

A. Payment of purchase price is made in agreed installments

B. On default of payment of installment, seller has a right to take back the goods

C. Purchaser prepares Assets Account, Seller's Account and Interest Suspense Account in his books

D. Purchaser has right to sell the asset at any time after receiving the delivery

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Accounting MCQ Questions and Solutions with Explanations | Commerce

41. Receipts and payments Account is a summary of:

Answer & Solution

42. In what order, the following assets are shown in the balance sheet of a company? i. Trade receivables ii. Cash iii. Furniture and fittings iv. Investment in shares and debentures

Answer & Solution

43. In the context of dissolution of a firm, which of the following statements is true:

Answer & Solution

44. Under Royalty Accounts, if there is strike for a certain period then:

Answer & Solution

45. Sale proceeds of grass in case of a sport club is:

Answer & Solution

46. "Higher the ratio, the more favourable it is". This statement does not apply with respect to

Answer & Solution

47. The Gross Working Capital means

Answer & Solution

48. Cash discount allowed to a debtor should be credited to

Answer & Solution

49. Insurance expenses paid to bring an equipment from the place of purchase to the place of installation is a type of

Answer & Solution

50. In case of Installment Payment System, which one of the following statements is not true?

Answer & Solution

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41.
Receipts and payments Account is a summary of:

42.
In what order, the following assets are shown in the balance sheet of a company?
i. Trade receivables
ii. Cash
iii. Furniture and fittings
iv. Investment in shares and debentures

43.
In the context of dissolution of a firm, which of the following statements is true:

44.
Under Royalty Accounts, if there is strike for a certain period then:

45.
Sale proceeds of grass in case of a sport club is:

46.
"Higher the ratio, the more favourable it is".
This statement does not apply with respect to

47.
The Gross Working Capital means

48.
Cash discount allowed to a debtor should be credited to

49.
Insurance expenses paid to bring an equipment from the place of purchase to the place of installation is a type of

50.
In case of Installment Payment System, which one of the following statements is not true?