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.
The break-even chart signifies the relationship between:

A. Cost and Volume of Sales

B. Cost and Volume of Profit

C. Cost and Volume of Production

D. All the above

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92.
Which of the following statement is incorrect?

A. A person who receives profits is always a partner

B. A person who receives profits is not necessarily a partner

C. The true test of partnership is the mutual agency, i.e., agency relationship among partners

D. Partnership comes into existence only through an agreement

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93.
If sales are Rs. 14,900, Gross Profit Rs. 3,300, Net Loss Rs. 500. The operating expenses will be:

A. Rs. 2,800

B. Rs. 3,800

C. Rs. 11,100

D. Rs. 11,600

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94.
The most precise test of liquidity is

A. Quick ratio

B. Current ratio

C. Absolute liquid ratio

D. None of the above

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95.
Assertion (A): In preparing final accounts, if closing stock is given in the trial balance, it is shown only in the Balance Sheet.
Reason (R): Any item appearing in the trial balance is treated only at one place i.e. either in the trading and profit & loss a/c or in the balance sheet.
Now, 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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96.
In piecemeal distribution of cash on dissolution of a firm, cash is distributed to partners in the-

A. Capital Ratio

B. Profit Sharing Ratio

C. Sacrificing Ratio

D. None of these

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97.
Revaluation method of depreciation is generally used in the case of:

A. Plant

B. Land & building

C. Stock

D. Loose Tools

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98.
Wages Outstanding' is appearing in the Trial Balance of a company. While preparing the Income Statement and Balance Sheet, 'Wages Outstanding' should appear in-

A. the Balance Sheet only

B. the Income Statement only

C. both Income Statement and Balance Sheet

D. neither Income Statement nor Balance Sheet

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99.
Interest on loan be allowed to partners where there is no express agreement between partners to this effect and also partnership deed does not have any provision regarding this

A. No interest will be allowed

B. Allowed Interest @ 12% per annum

C. Allowed Interest @ 6% per annum

D. None of these

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100.
The cost of the motor car as on 1^st January 1987 is Rs. 70,000. The rate of depreciation is 10% P.A. The balance of motor car on 1^st January 1991 by fixed installation method and by written down value method will be

A. Rs. 42,000, Rs. 45,927

B. Rs. 45,927, Rs. 47,526

C. Rs. 35,000, Rs. 39,415

D. Rs. 45,927, Rs. 48,718

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Accounting MCQ Questions and Solutions with Explanations | Commerce

91. The break-even chart signifies the relationship between:

Answer & Solution

92. Which of the following statement is incorrect?

Answer & Solution

93. If sales are Rs. 14,900, Gross Profit Rs. 3,300, Net Loss Rs. 500. The operating expenses will be:

Answer & Solution

94. The most precise test of liquidity is

Answer & Solution

Answer & Solution

96. In piecemeal distribution of cash on dissolution of a firm, cash is distributed to partners in the-

Answer & Solution

97. Revaluation method of depreciation is generally used in the case of:

Answer & Solution

98. Wages Outstanding' is appearing in the Trial Balance of a company. While preparing the Income Statement and Balance Sheet, 'Wages Outstanding' should appear in-

Answer & Solution

99. Interest on loan be allowed to partners where there is no express agreement between partners to this effect and also partnership deed does not have any provision regarding this

Answer & Solution

100. The cost of the motor car as on 1st January 1987 is Rs. 70,000. The rate of depreciation is 10% P.A. The balance of motor car on 1st January 1991 by fixed installation method and by written down value method will be

Answer & Solution

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91.
The break-even chart signifies the relationship between:

92.
Which of the following statement is incorrect?

93.
If sales are Rs. 14,900, Gross Profit Rs. 3,300, Net Loss Rs. 500. The operating expenses will be:

94.
The most precise test of liquidity is

96.
In piecemeal distribution of cash on dissolution of a firm, cash is distributed to partners in the-

97.
Revaluation method of depreciation is generally used in the case of:

98.
Wages Outstanding' is appearing in the Trial Balance of a company. While preparing the Income Statement and Balance Sheet, 'Wages Outstanding' should appear in-

99.
Interest on loan be allowed to partners where there is no express agreement between partners to this effect and also partnership deed does not have any provision regarding this

100.
The cost of the motor car as on 1^st January 1987 is Rs. 70,000. The rate of depreciation is 10% P.A. The balance of motor car on 1^st January 1991 by fixed installation method and by written down value method will be