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

21.
Z is admitted in a firm for 14 shares in the profit where he brings Rs. 30,000 for goodwill. It will be taken away by the old partners X and Y in

A. Old profit-sharing ratio

B. New profit-sharing ratio

C. Sacrificing ratio

D. Capital ratio

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22.
On admission of a new partner increase in the value of an assets is credited to

A. Old Partner's Capital Account

B. Revaluation Account

C. Assets Account

D. All Partner's Capital Account

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23.
The accounting concepts related to Balance Sheet are
1. Realisation Concept
2. Cost Concept
3. Matching Concept
4. Accounting Equivalence Concept
Select the correct answer

A. 1 and 4 are correct

B. 2 and 3 are correct

C. 1 and 3 are correct

D. 2 and 4 are correct

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24.
A, B and C are partners. A's capital is Rs. 3,00,000 and B's capital is Rs. 1,00,000. C has not invested any amount as capital but alone manages the whole business. C wants Rs. 30,000 per annum as salary. The firm earned a profit of Rs. 1,50,000. How much will be each partner's share of profit?

A. A - Rs. 60,000, B - Rs. 60,000, C - Nil

B. A - Rs. 90,000, B - Rs. 30,000, C - Nil

C. A - Rs. 40,000, B - Rs. 40,000, C - 40,000

D. A - Rs. 50,000, B - Rs. 50,000, C - 50,000

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25.
Improvement of profit-volume ratio can be done by

A. Increasing selling price

B. Altering sales mixture

C. Reducing variable cost

D. All of the above

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26.
Stock turnover is:

A. Profitability ratio

B. Activity ratio

C. Leverage ratio

D. Liquidity ratio

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27.
Under copyright agreement the amount of royalty is computed on the basis of

A. Number of books published

B. Number of books sold

C. Total cost of books published

D. Total sale price of the books sold

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28.
Schedule III Part II of the Companies Act, 2013 deals with which one of the following?

A. Format of Balance Sheet

B. Format of Profit and Loss Account

C. Format of Trading Account

D. Format of Cash Flow

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29.
A company issued 50,000 Equity shares of Rs. 10 each, Rs. 8 paid up and 50,000 8% Preference shares of Rs. 100 each. Expected profits are Rs. 10,00,000 Normal rate of dividend on Equity shares is 16%, Provision for taxation 60% and 10% of the profit is transferred to reserves.
The value of equity share will be:

A. 40

B. 50

C. 45

D. None of the above

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30.
The installation expenses for a new machinery will be debited to:

A. Installation Expense Account

B. Cash Account

C. Profit & Loss Account

D. Machinery Account

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Accounting MCQ Questions and Solutions with Explanations | Commerce

21. Z is admitted in a firm for 14 shares in the profit where he brings Rs. 30,000 for goodwill. It will be taken away by the old partners X and Y in

Answer & Solution

22. On admission of a new partner increase in the value of an assets is credited to

Answer & Solution

23. The accounting concepts related to Balance Sheet are 1. Realisation Concept 2. Cost Concept 3. Matching Concept 4. Accounting Equivalence Concept Select the correct answer

Answer & Solution

24. A, B and C are partners. A's capital is Rs. 3,00,000 and B's capital is Rs. 1,00,000. C has not invested any amount as capital but alone manages the whole business. C wants Rs. 30,000 per annum as salary. The firm earned a profit of Rs. 1,50,000. How much will be each partner's share of profit?

Answer & Solution

25. Improvement of profit-volume ratio can be done by

Answer & Solution

26. Stock turnover is:

Answer & Solution

27. Under copyright agreement the amount of royalty is computed on the basis of

Answer & Solution

28. Schedule III Part II of the Companies Act, 2013 deals with which one of the following?

Answer & Solution

Answer & Solution

30. The installation expenses for a new machinery will be debited to:

Answer & Solution

Read More Section(Accounting)

21.
Z is admitted in a firm for 14 shares in the profit where he brings Rs. 30,000 for goodwill. It will be taken away by the old partners X and Y in

22.
On admission of a new partner increase in the value of an assets is credited to

23.
The accounting concepts related to Balance Sheet are
1. Realisation Concept
2. Cost Concept
3. Matching Concept
4. Accounting Equivalence Concept
Select the correct answer

24.
A, B and C are partners. A's capital is Rs. 3,00,000 and B's capital is Rs. 1,00,000. C has not invested any amount as capital but alone manages the whole business. C wants Rs. 30,000 per annum as salary. The firm earned a profit of Rs. 1,50,000. How much will be each partner's share of profit?

25.
Improvement of profit-volume ratio can be done by

26.
Stock turnover is:

27.
Under copyright agreement the amount of royalty is computed on the basis of

28.
Schedule III Part II of the Companies Act, 2013 deals with which one of the following?

30.
The installation expenses for a new machinery will be debited to: