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.
Partner by estoppel is a

A. Partner with limited power

B. Nominal partner

C. Sleeping partner

D. Partner under special situation

Answer & Solution Discuss in Board Save for Later

62.
Accrual concept is related to:

A. Revenue

B. Items

C. Depreciation

D. None of these

Answer & Solution Discuss in Board Save for Later

63.
A company wishes to issue 1,000 7% debentures of Rs. 100 each repayable after 10 years for which the company will have to incur the following expenses:
Underwriting commission ⇔ 1.5%
Brokerage ⇔ 0.5%
Printing and Miscellaneous expenses ⇔ Rs. 1,000
The annual cost of capital would be:

A. 7.3%

B. 7.0%

C. 6.5%

D. 6.0%

Answer & Solution Discuss in Board Save for Later

64.
If at the end of a financial year capital is Rs. 20,000, drawing during the year is Rs. 10,000, capital at the beginning of the year is Rs. 12,000, additional capital introduced during the year is Rs. 14,000. Then find net profit for the year?

A. Rs. 5,600

B. Rs. 3,200

C. Rs. 4,000

D. Rs. 4,200

Answer & Solution Discuss in Board Save for Later

65.
Consider the following statements:
Statement (A): Balance sheet shows liquidity position of a business on a particular date.
Reason (R): Balance sheet is prepared on basis of actual transactions which are recorded in the books of accounts.
Give the correct answer:

A. A and R both are correct and R is correct explanation of A

B. A and R both are correct and R is not correct explanation of A

C. A is correct but R is wrong

D. A is wrong but R is correct

Answer & Solution Discuss in Board Save for Later

66.
The balance in the capital reduction A/c after writing off accumulated losses is transferred to:

A. General Reserve A/c

B. Capital Reserve A/c

C. Share Capital A/c

D. None of the above

Answer & Solution Discuss in Board Save for Later

67.
The International Accounting Standard-2 lays down guide lines for inventory valuation and presentation. Which one of the following is not true as per these standards:

A. The inventory should be valued at historic cost or net realisable value, whichever is lower

B. The cost of damaged raw material should be added in arriving at the value of the stock of manufactured goods

C. Usually either the FIFO or the Weighted Average Cost Method should be used for valuation of inventory

D. The basis and policy of valuation of inventory should not clearly be stated

Answer & Solution Discuss in Board Save for Later

68.
When the cost incurred on recruiting, training and developing the employees is considered for determining the value of employees, it is called

A. the opportunity cost approach

B. the historical cost approach

C. the replacement cost approach

D. the marginal cost approach

Answer & Solution Discuss in Board Save for Later

69.
The amount of minimum rent is determined on which of the following basis ?

A. Time

B. Area

C. Time or Area

D. None of the above

Answer & Solution Discuss in Board Save for Later

70.
Raja and Ram are partners sharing profits in ratio 3 : 1. Ashok is admitted for $${\frac{1}{4}^{{\text{th}}}}$$ share in profits. New profit sharing ratio between Raja, Ram and Ashok is?

A. 9 : 3 : 4

B. 3 : 1 : 1

C. 2 : 1 : 2

D. 3 : 4 : 9

Answer & Solution Discuss in Board Save for Later

1 2 3 4 5 6 7 8 9 10

Accounting MCQ Questions and Solutions with Explanations | Commerce

61. Partner by estoppel is a

Answer & Solution

62. Accrual concept is related to:

Answer & Solution

63. A company wishes to issue 1,000 7% debentures of Rs. 100 each repayable after 10 years for which the company will have to incur the following expenses: Underwriting commission ⇔ 1.5% Brokerage ⇔ 0.5% Printing and Miscellaneous expenses ⇔ Rs. 1,000 The annual cost of capital would be:

Answer & Solution

64. If at the end of a financial year capital is Rs. 20,000, drawing during the year is Rs. 10,000, capital at the beginning of the year is Rs. 12,000, additional capital introduced during the year is Rs. 14,000. Then find net profit for the year?

Answer & Solution

65. Consider the following statements: Statement (A): Balance sheet shows liquidity position of a business on a particular date. Reason (R): Balance sheet is prepared on basis of actual transactions which are recorded in the books of accounts. Give the correct answer:

Answer & Solution

66. The balance in the capital reduction A/c after writing off accumulated losses is transferred to:

Answer & Solution

67. The International Accounting Standard-2 lays down guide lines for inventory valuation and presentation. Which one of the following is not true as per these standards:

Answer & Solution

68. When the cost incurred on recruiting, training and developing the employees is considered for determining the value of employees, it is called

Answer & Solution

69. The amount of minimum rent is determined on which of the following basis ?

Answer & Solution

70. Raja and Ram are partners sharing profits in ratio 3 : 1. Ashok is admitted for $${\frac{1}{4}^{{\text{th}}}}$$ share in profits. New profit sharing ratio between Raja, Ram and Ashok is?

Answer & Solution

Read More Section(Accounting)

61.
Partner by estoppel is a

62.
Accrual concept is related to:

63.
A company wishes to issue 1,000 7% debentures of Rs. 100 each repayable after 10 years for which the company will have to incur the following expenses:
Underwriting commission ⇔ 1.5%
Brokerage ⇔ 0.5%
Printing and Miscellaneous expenses ⇔ Rs. 1,000
The annual cost of capital would be:

64.
If at the end of a financial year capital is Rs. 20,000, drawing during the year is Rs. 10,000, capital at the beginning of the year is Rs. 12,000, additional capital introduced during the year is Rs. 14,000. Then find net profit for the year?

65.
Consider the following statements:
Statement (A): Balance sheet shows liquidity position of a business on a particular date.
Reason (R): Balance sheet is prepared on basis of actual transactions which are recorded in the books of accounts.
Give the correct answer:

66.
The balance in the capital reduction A/c after writing off accumulated losses is transferred to:

67.
The International Accounting Standard-2 lays down guide lines for inventory valuation and presentation. Which one of the following is not true as per these standards:

68.
When the cost incurred on recruiting, training and developing the employees is considered for determining the value of employees, it is called

69.
The amount of minimum rent is determined on which of the following basis ?

70.
Raja and Ram are partners sharing profits in ratio 3 : 1. Ashok is admitted for $${\frac{1}{4}^{{\text{th}}}}$$ share in profits. New profit sharing ratio between Raja, Ram and Ashok is?