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

41.
In the event of death of a partner, the amount of joint life policy is credited to

A. the account of dead partner only

B. all the partner's capital accounts in the profit and loss ratio

C. remaining partner's capital accounts in profit and loss ratio

D. none of these

Answer & Solution Discuss in Board Save for Later

42.
The Balance Sheet of an Indian company should show, by way of notes, the following contingent liabilities :

A. Claims against the company not acknowledged by as debts

B. Uncalled liability on shares partly paid

C. Arrears of fixed cumulative dividends

D. All the above

Answer & Solution Discuss in Board Save for Later

43.
Which of the following is a current liability?

A. Capital

B. Reserve Fund

C. Bills Payable

D. Debenture

Answer & Solution Discuss in Board Save for Later

44.
The Garner Vs. Murray case was concerned with the settlement of accounts among the partners at the time of:

A. Admission of a new partner

B. Retirement of a partner

C. Death of a partner

D. Insolvency of a partner

Answer & Solution Discuss in Board Save for Later

45.
Under statement of closing work-in-progress in the period will

A. understate cost of goodsmanufactured in that period

B. overstate current assets

C. overstate gross profit from sales in that period

D. understate net income in that period

Answer & Solution Discuss in Board Save for Later

46.
Under the 'imprest system of petty cash book' the petty cashier submits the periodical statement and recovers

A. budget allotted for the period

B. actual amount spent

C. budget allotted plus unspent amount

D. petty amount of cash

Answer & Solution Discuss in Board Save for Later

47.

Net loss Rs. 20,000

Depreciation on Machinery Rs. 50,000

Amortisation of goodwill Rs. 5,000

Loss on the sale of old furniture Rs. 3,500

Profit on the sale of land Rs. 8,500

Funds from operation are

A. Rs. 25,000

B. Rs. 30,000

C. Rs. 32,000

D. Rs. 36,500

Answer & Solution Discuss in Board Save for Later

48.
Match the following

List-I List-II

a. Income is measured and financial position is assessed 1. Consistency concept

b. Anticipate no profit and provide for all possible losses 2. Going concern concept

c. Assets are depreciated on the basis of expected life rather than on the basis of market value 3. Conservatism concept

d. The comparison of one accounting period with that in the past is possible 4. Matching concept

A. a-4, b-3, c-2, d-1

B. a-2, b-1, c-4, d-3

C. a-4, b-3, c-1, d-2

D. a-3, b-4, c-2, d-1

Answer & Solution Discuss in Board Save for Later

49.
Fixed Assets (Net):
31^st December,1994 = Rs. 1,50,000
31^st December, 1995 = Rs. 1,90,000
Provision for depreciation:
A machine costing Rs. 70,000 (book value Rs. 40,000) was disposed for Rs. 25,000 during the year 1995
The application of funds in respect of fixed assets during the year is:

A. Rs. 1,10,000

B. Rs. 1,80,008

C. Rs. 2,05,000

D. Rs. 2,20,000

Answer & Solution Discuss in Board Save for Later

50.
Which of the following is not a current liability:

A. Bank overdraft

B. Redeemable debentures

C. Accounts payable

D. Provision for bad debts

Answer & Solution Discuss in Board Save for Later

1 2 3 4 5 6 7 8 9 10

Net loss	Rs. 20,000
Depreciation on Machinery	Rs. 50,000
Amortisation of goodwill	Rs. 5,000
Loss on the sale of old furniture	Rs. 3,500
Profit on the sale of land	Rs. 8,500

List-I	List-II
a. Income is measured and financial position is assessed	1. Consistency concept
b. Anticipate no profit and provide for all possible losses	2. Going concern concept
c. Assets are depreciated on the basis of expected life rather than on the basis of market value	3. Conservatism concept
d. The comparison of one accounting period with that in the past is possible	4. Matching concept

Accounting MCQ Questions and Solutions with Explanations | Commerce

41. In the event of death of a partner, the amount of joint life policy is credited to

Answer & Solution

42. The Balance Sheet of an Indian company should show, by way of notes, the following contingent liabilities :

Answer & Solution

43. Which of the following is a current liability?

Answer & Solution

44. The Garner Vs. Murray case was concerned with the settlement of accounts among the partners at the time of:

Answer & Solution

45. Under statement of closing work-in-progress in the period will

Answer & Solution

46. Under the 'imprest system of petty cash book' the petty cashier submits the periodical statement and recovers

Answer & Solution

47. Net loss Rs. 20,000 Depreciation on Machinery Rs. 50,000 Amortisation of goodwill Rs. 5,000 Loss on the sale of old furniture Rs. 3,500 Profit on the sale of land Rs. 8,500 Funds from operation are

Answer & Solution

Answer & Solution

49. Fixed Assets (Net): 31st December,1994 = Rs. 1,50,000 31st December, 1995 = Rs. 1,90,000 Provision for depreciation: A machine costing Rs. 70,000 (book value Rs. 40,000) was disposed for Rs. 25,000 during the year 1995 The application of funds in respect of fixed assets during the year is:

Answer & Solution

50. Which of the following is not a current liability:

Answer & Solution

Read More Section(Accounting)

41.
In the event of death of a partner, the amount of joint life policy is credited to

42.
The Balance Sheet of an Indian company should show, by way of notes, the following contingent liabilities :

43.
Which of the following is a current liability?

44.
The Garner Vs. Murray case was concerned with the settlement of accounts among the partners at the time of:

45.
Under statement of closing work-in-progress in the period will

46.
Under the 'imprest system of petty cash book' the petty cashier submits the periodical statement and recovers

47.

Net loss Rs. 20,000

Depreciation on Machinery Rs. 50,000

Amortisation of goodwill Rs. 5,000

Loss on the sale of old furniture Rs. 3,500

Profit on the sale of land Rs. 8,500

Funds from operation are

49.
Fixed Assets (Net):
31^st December,1994 = Rs. 1,50,000
31^st December, 1995 = Rs. 1,90,000
Provision for depreciation:
A machine costing Rs. 70,000 (book value Rs. 40,000) was disposed for Rs. 25,000 during the year 1995
The application of funds in respect of fixed assets during the year is:

50.
Which of the following is not a current liability: