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

71.
Which of the following statements is not correct?

A. The amount received by selling goods and services is called revenue

B. The money invested by owner in the business is called capital

C. The grouping of transaction of same nature at one place is called recording

D. Assets - External liablities = capital

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72.
When capitals of partners are fluctuating, then in the case of dissolution of the firm, the deficiency of the insolvent partner's capital is borne by the solvent partners according to Garner Vs. Murrary decision:

A. In their profit-sharing ratio

B. In the ratio of their capitals as they stood before the commencement of dissolution

C. In the ratio of their capitals arrived at after the adjustment of accumulated profit & loss on realisation but before profit and loss on realisation

D. In the ratio of their capital arrived at after the adjustment of accumulated profit & loss and profit & loss on realisation

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73.
Return on investment is the ratio between:

A. Net profit and capital employed

B. Investment and profit

C. Sales and capital invested

D. Net profit and dividend

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74.
On the basis of the following information, what will be the EBIT corresponding to financial indifference point?
Total capital outlay Rs. 60,00,000
Financing Plans
1. 100% Equity @ Rs. 10/- per share
2. Debt - equity ratio 2 : 1
Rate of interest 18% p.a., corporate tax rate 40%

A. Rs. 10,00,000

B. Rs. 12,00,000

C. Rs. 10,80,000

D. Rs. 12,80,000

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75.
Which of the following is not a movable property?

A. Debtors

B. Pre-paid expenses

C. Stock

D. Furniture in the clothing business

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76.
If accounting information is based on facts and it is verifiable by documents, it has the quality of

A. relevance

B. understandability

C. reliability

D. comparability

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77.
Sweat Equity Shares can be issued by a

A. special resolution

B. special resolution and sanction from NCLT

C. ordinary resolution and sanction from NCLT

D. none of the above

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78.
Patent rights account is:

A. Personal Account

B. Real Account

C. Nominal Account

D. All of the above

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79.
Which of the following statement is correct?

A. Accounting principles represent laws fixed by the respective governments

B. Accounting principles represent laws fixed by accounting expert

C. Accounting principles represent inviolable laws fixed by a legal board

D. Accounting principles represent a consensuses at a particular time to the recording of accounting transactions

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80.
Read the following statements and mark your answer:
i. Return on Investment (R.O.I.) is calculated as part of final accounts preparation exercise
ii. Inventory valuation is a must for ascertaining profit by preparation of Trading Account
iii. Operational audit is a statutory requirement for a company auditor
iv. Garner Vs. Murray case relates to settlement of accounts on insolvency of a partner of the firm

A. i and iv are correct

B. ii and iv are correct

C. ii and iii are correct

D. i and iii are correct

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Accounting MCQ Questions and Solutions with Explanations | Commerce

71. Which of the following statements is not correct?

Answer & Solution

72. When capitals of partners are fluctuating, then in the case of dissolution of the firm, the deficiency of the insolvent partner's capital is borne by the solvent partners according to Garner Vs. Murrary decision:

Answer & Solution

73. Return on investment is the ratio between:

Answer & Solution

74. On the basis of the following information, what will be the EBIT corresponding to financial indifference point? Total capital outlay Rs. 60,00,000 Financing Plans 1. 100% Equity @ Rs. 10/- per share 2. Debt - equity ratio 2 : 1 Rate of interest 18% p.a., corporate tax rate 40%

Answer & Solution

75. Which of the following is not a movable property?

Answer & Solution

76. If accounting information is based on facts and it is verifiable by documents, it has the quality of

Answer & Solution

77. Sweat Equity Shares can be issued by a

Answer & Solution

78. Patent rights account is:

Answer & Solution

79. Which of the following statement is correct?

Answer & Solution

Answer & Solution

Read More Section(Accounting)

71.
Which of the following statements is not correct?

72.
When capitals of partners are fluctuating, then in the case of dissolution of the firm, the deficiency of the insolvent partner's capital is borne by the solvent partners according to Garner Vs. Murrary decision:

73.
Return on investment is the ratio between:

74.
On the basis of the following information, what will be the EBIT corresponding to financial indifference point?
Total capital outlay Rs. 60,00,000
Financing Plans
1. 100% Equity @ Rs. 10/- per share
2. Debt - equity ratio 2 : 1
Rate of interest 18% p.a., corporate tax rate 40%

75.
Which of the following is not a movable property?

76.
If accounting information is based on facts and it is verifiable by documents, it has the quality of

77.
Sweat Equity Shares can be issued by a

78.
Patent rights account is:

79.
Which of the following statement is correct?