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

61.
Consider the following statements:
Assertion (A): Value added statement is an improvement over the traditional method of preparing profit and loss account.
Reason (R): Value added statement reflects the profit added by the firm and the share of various stockeholders of the business.
Now, select your 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 the correct explanation of A

C. A is true but R is false

D. A is false but R is true

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62.
Assets of a business means:

A. Liabilities - Capital

B. Cash + Capital

C. Liabilities + Capital

D. Capital - Drawings

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63.
The record of cash transactions by non-trading concerns is shown in

A. Receipt and Payment A/c

B. Income and Expenditure A/c

C. Profit and Loss A/c

D. Manufacturing A/c

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64.
Which of the following is a capital expenditure:

A. Repairs and painting of an old building

B. Repairing and servicing of an old typewriter

C. Retreading of truck tyers

D. Repairing of staircases

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65.
Assertion (A): Increasing the value of closing inventory increases profit.
Reason (R): Increasing the value of closing inventory reduces the cost of goods sold
In the context of the above two statements, which of the following is correct?

A. Both (A) and (R) are correct

B. Only (A) is correct

C. Only (R) is correct

D. Both (A) and (R) are incorrect

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66.
Arrange the following liabilities in the order of company balance sheet.
i. Bank Overdraft
ii. Bank Loan
iii. Share Capital
iv. Provision for Taxation

A. i, ii, iii, iv

B. iv, iii, ii, i

C. iii, ii, i, iv

D. iii, ii, iv, i

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67.
Which of the following will be debited in Income and expenditure account of a school?

A. Income from tution fee

B. Amount of annual prize which was given from prize account

C. Maps purchased for Geography

D. Monetary punishment received from students

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68.
What shall be the amount of Shareholders fund, if Equity Share Capital is Rs. 16,00,000, 8% Preference Share Capital is Rs. 2,00,000, General Reserve Rs. 73,000, Profit and Loss account balance (Cr.) Rs. 41,000, Preliminary Expenses. Rs. 20,000 and Short-term liabilities Rs. 30,000:

A. Rs. 15,00,000

B. Rs. 18,94,000

C. Rs. 19,14,000

D. Rs. 19,34,000

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69.
The objectives of a business organization do not include

A. Maximisation of total investment

B. Maximisation of profits

C. Maximisation of sales

D. Survival

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70.
Which of the following is the reason for decapitalization?

A. Company raises more capital than required

B. Company commissioner buys assets at higher price

C. Company has not provided adequate depreciation on assets

D. Company has reinvested a large part of its excess projects

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Accounting MCQ Questions and Solutions with Explanations | Commerce

Answer & Solution

62. Assets of a business means:

Answer & Solution

63. The record of cash transactions by non-trading concerns is shown in

Answer & Solution

64. Which of the following is a capital expenditure:

Answer & Solution

65. Assertion (A): Increasing the value of closing inventory increases profit. Reason (R): Increasing the value of closing inventory reduces the cost of goods sold In the context of the above two statements, which of the following is correct?

Answer & Solution

66. Arrange the following liabilities in the order of company balance sheet. i. Bank Overdraft ii. Bank Loan iii. Share Capital iv. Provision for Taxation

Answer & Solution

67. Which of the following will be debited in Income and expenditure account of a school?

Answer & Solution

68. What shall be the amount of Shareholders fund, if Equity Share Capital is Rs. 16,00,000, 8% Preference Share Capital is Rs. 2,00,000, General Reserve Rs. 73,000, Profit and Loss account balance (Cr.) Rs. 41,000, Preliminary Expenses. Rs. 20,000 and Short-term liabilities Rs. 30,000:

Answer & Solution

69. The objectives of a business organization do not include

Answer & Solution

70. Which of the following is the reason for decapitalization?

Answer & Solution

Read More Section(Accounting)

62.
Assets of a business means:

63.
The record of cash transactions by non-trading concerns is shown in

64.
Which of the following is a capital expenditure:

65.
Assertion (A): Increasing the value of closing inventory increases profit.
Reason (R): Increasing the value of closing inventory reduces the cost of goods sold
In the context of the above two statements, which of the following is correct?

66.
Arrange the following liabilities in the order of company balance sheet.
i. Bank Overdraft
ii. Bank Loan
iii. Share Capital
iv. Provision for Taxation

67.
Which of the following will be debited in Income and expenditure account of a school?

68.
What shall be the amount of Shareholders fund, if Equity Share Capital is Rs. 16,00,000, 8% Preference Share Capital is Rs. 2,00,000, General Reserve Rs. 73,000, Profit and Loss account balance (Cr.) Rs. 41,000, Preliminary Expenses. Rs. 20,000 and Short-term liabilities Rs. 30,000:

69.
The objectives of a business organization do not include

70.
Which of the following is the reason for decapitalization?