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

91.
Assertion (A): A joint stock company can issue Bonus shares out of its Capital Reserve.
Reason (R): The company can satisfy the share holders and avoid the outflow of cash from business by utilizing only the Capital reserve for the issue of bonus shares.
Select the correct answer:

A. Both (A) and (R) are true and (R) is the correct explanation of (A)

B. Both (A) and (R) are true, but (R) is not correct explanation of (A)

C. (A) is true but (R) is false

D. (A) is false but (R) is true

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92.
In balance sheet redeemable debenture whose payment has not been received by the debenture holder will be shown in

A. Unsecured loan

B. Secured loan

C. Contingent liability

D. Current liability

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93.
A machine is purchased on 1^st January, 2001 for Rs. 1,00,000. Depreciation is to be charged at the rate of 10% P.A. by diminishing balance method. What will be the amount of depreciation shown is the profit and loss account for the year ending 31^st December, 2004?

A. Rs. 10,000

B. Rs. 8,100

C. Rs. 20,000

D. Rs. 7,290

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94.
Earned net profit + Non activity and non-fund expenses are equal to

A. Use of fund

B. Fund from activities

C. Sinking fund

D. Means of fund

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95.
Which of the following items cannot be shown as reserves?

A. Capital Reserve

B. Capital Redemption Reserve

C. Securities Premium

D. None of the above

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96.
Cost of Goods sold in Hire-purchase system is transferred to

A. Sales A/c

B. Purchase A/c

C. Hire Purchase Trading A/c

D. Profit & Loss A/c

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97.
Measuring cost and value of personnel for organisation is related to:

A. Social Accounting

B. Inflation Accounting

C. Environmental Accounting

D. Human Resource Accounting

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98.
Read the following statements and give your answer according to the codes given below:
i. Credit on investment is calculated as a part of the final account preparation process
ii. Stock valuation is necessary to determine profit by creating a business account
iii. Working audit is a statutory requirement for auditing a company
iv. Garner vs. Murray case deals with the settlement of accounts in case of bankruptcy of a partner of a partnership firm

A. i and iv are correct

B. ii and iv are correct

C. iii and iv are correct

D. i and iii are correct

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99.
Imprest system relates to:

A. Cash Book

B. Petty Cash Book

C. Profit & Loss Account

D. Balance Sheet

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100.
Outstanding salary given inside trial balance will be shown in

A. Trading account & balance sheet

B. Profit & loss account & balance sheet

C. Liability side of balance sheet

D. Asset side of balance sheet

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Accounting MCQ Questions and Solutions with Explanations | Commerce

91. Assertion (A): A joint stock company can issue Bonus shares out of its Capital Reserve. Reason (R): The company can satisfy the share holders and avoid the outflow of cash from business by utilizing only the Capital reserve for the issue of bonus shares. Select the correct answer:

Answer & Solution

92. In balance sheet redeemable debenture whose payment has not been received by the debenture holder will be shown in

Answer & Solution

93. A machine is purchased on 1st January, 2001 for Rs. 1,00,000. Depreciation is to be charged at the rate of 10% P.A. by diminishing balance method. What will be the amount of depreciation shown is the profit and loss account for the year ending 31st December, 2004?

Answer & Solution

94. Earned net profit + Non activity and non-fund expenses are equal to

Answer & Solution

95. Which of the following items cannot be shown as reserves?

Answer & Solution

96. Cost of Goods sold in Hire-purchase system is transferred to

Answer & Solution

97. Measuring cost and value of personnel for organisation is related to:

Answer & Solution

Answer & Solution

99. Imprest system relates to:

Answer & Solution

100. Outstanding salary given inside trial balance will be shown in

Answer & Solution

Read More Section(Accounting)

91.
Assertion (A): A joint stock company can issue Bonus shares out of its Capital Reserve.
Reason (R): The company can satisfy the share holders and avoid the outflow of cash from business by utilizing only the Capital reserve for the issue of bonus shares.
Select the correct answer:

92.
In balance sheet redeemable debenture whose payment has not been received by the debenture holder will be shown in

93.
A machine is purchased on 1^st January, 2001 for Rs. 1,00,000. Depreciation is to be charged at the rate of 10% P.A. by diminishing balance method. What will be the amount of depreciation shown is the profit and loss account for the year ending 31^st December, 2004?

94.
Earned net profit + Non activity and non-fund expenses are equal to

95.
Which of the following items cannot be shown as reserves?

96.
Cost of Goods sold in Hire-purchase system is transferred to

97.
Measuring cost and value of personnel for organisation is related to:

99.
Imprest system relates to:

100.
Outstanding salary given inside trial balance will be shown in