Accounting MCQ Questions and Solutions with Explanations | Commerce

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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

51.
Which of the following is not a current asset?

A. Stock

B. Preliminary expenses

C. Debtors

D. Cash balance

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52.
After sale of investment the balance of sinking fund investment account is transferred to

A. Profit and loss account

B. Capital reserve account

C. Sinking fund account

D. Debentures account

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53.
The only item that is not recorded in the books of account is-

A. Goodwill

B. Special Discount

C. Trade Discount

D. Cash Discount

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54.
Liability of a partner in a partnership firm

A. limited

B. unlimited

C. restricted

D. undefined

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55.
If opening stock is Rs. 2,45,000, Purchases Rs. 15,00,000, Sales Rs. 17,40,000 and Rate of gross profit on cost is 20%, then closing stock will be

A. Rs. 3,53,000

B. Rs. 2,95,000

C. Rs. 2,45,000

D. Rs. 1,95,000

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56.
When the reserve is to be capitalized the shares issued to the existing shares are called

A. Right issue

B. Bonus share

C. Preference share

D. All of the above

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57.
An arrangement under which a company raises funds by issuing securities which carry a fixed rate of interest or dividend which is less than the average earnings of the company with a view to increasing the return on equity shares, is known as:

A. Under-capitalisation

B. Over-capitalisation

C. Trading on equity

D. Capital gearing

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58.
On the admission of a new partner, Revaluation of assets and liabilities is to be made for the

A. benefit of old partners

B. benefit of new partner

C. mutual benefit of old and new partners

D. benefit of old partners who are sacrificing

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59.
Acid Test Ratio is:

A. Current Assets : Current Liabilities

B. Quick Assets : Current Liabilities

C. Total Assets : Total Liabilities

D. Fixed Assets : Fixed Liabilities

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60.
Cost volume profit analysis is not based on which of the following recognition-

A. The sales mix of the products remains constants

B. Quantity of stock is variable from year to year

C. Income and cost are linear within the prescribed limits

D. Value of goods and wages are immutable/constant

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Accounting MCQ Questions and Solutions with Explanations | Commerce

51. Which of the following is not a current asset?

Answer & Solution

52. After sale of investment the balance of sinking fund investment account is transferred to

Answer & Solution

53. The only item that is not recorded in the books of account is-

Answer & Solution

54. Liability of a partner in a partnership firm

Answer & Solution

55. If opening stock is Rs. 2,45,000, Purchases Rs. 15,00,000, Sales Rs. 17,40,000 and Rate of gross profit on cost is 20%, then closing stock will be

Answer & Solution

56. When the reserve is to be capitalized the shares issued to the existing shares are called

Answer & Solution

57. An arrangement under which a company raises funds by issuing securities which carry a fixed rate of interest or dividend which is less than the average earnings of the company with a view to increasing the return on equity shares, is known as:

Answer & Solution

58. On the admission of a new partner, Revaluation of assets and liabilities is to be made for the

Answer & Solution

59. Acid Test Ratio is:

Answer & Solution

60. Cost volume profit analysis is not based on which of the following recognition-

Answer & Solution

Read More Section(Accounting)

51.
Which of the following is not a current asset?

52.
After sale of investment the balance of sinking fund investment account is transferred to

53.
The only item that is not recorded in the books of account is-

54.
Liability of a partner in a partnership firm

55.
If opening stock is Rs. 2,45,000, Purchases Rs. 15,00,000, Sales Rs. 17,40,000 and Rate of gross profit on cost is 20%, then closing stock will be

56.
When the reserve is to be capitalized the shares issued to the existing shares are called

57.
An arrangement under which a company raises funds by issuing securities which carry a fixed rate of interest or dividend which is less than the average earnings of the company with a view to increasing the return on equity shares, is known as:

58.
On the admission of a new partner, Revaluation of assets and liabilities is to be made for the

59.
Acid Test Ratio is:

60.
Cost volume profit analysis is not based on which of the following recognition-