Accounting MCQ Questions and Solutions with Explanations | Commerce

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71.
A prepayment of insurance premium will appear in the Balance Sheet and in the Insurance Premium account respectively as:

A. A liability and a debit balance

B. An asset and a debit balance

C. An asset and a credit balance

D. A liability and a credit balance

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72.
In case of forfeiture of share, share forfeiture account is credited with

A. Money received

B. Money due

C. Equal value

D. None of the above

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73.
A share of Rs. 10 issued at 2 ruppes premium on which full amount is called is forfeited due to non-payment of Rs. 4. What will be amount recorded in share capital account

A. Rs. 12

B. Rs. 10

C. Rs. 8

D. Rs. 6

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74.
Depreciation is admissible on which of the following asset?

A. Animal

B. Tea plant

C. Goodwill of business

D. Patent

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75.
The method/criteria that cannot be used for the measurement of social cost benefit of a particular project is

A. capital output ratio

B. value added method

C. saving in foreign exchange

D. total cost concept

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76.
Correct equation of balance sheet is

A. Assets = Liability + owner's equity

B. The claim of outsiders against the business is the residual claim

C. Owner's equity increases by loss

D. Increase in asset leads to increase in owner's equity

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77.
Money received on issue of share which is more than the nominal value of shares is credited to which account?

A. Security premium account

B. Discount account

C. Share capital account

D. Profit and loss account

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78.
Net asset of a business on 1^st January and 31^st January are Rs. 39,000 and Rs. 38,000 respectively. Additional capital and drawing made by owner during the month is Rs. 2,000 and Rs. 6,000. What is net income earned during the month of January?

A. Rs. 1,000 (Loss)

B. Rs. 3,000

C. Rs. 5,000

D. Rs. 4,000

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79.
A company proposes to introduce a new product in the market. The company wants to maintain P/V Ratio at 25%. If variable cost of the product is 300, what will be the selling price?

A. Rs. 100

B. Rs. 200

C. Rs. 300

D. Rs. 400

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80.
Which of the following is not a ratio for analysis of profitability?

A. Operating ratio

B. Net Profit ratio

C. Acid test ratio

D. None of these

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Accounting MCQ Questions and Solutions with Explanations | Commerce

71. A prepayment of insurance premium will appear in the Balance Sheet and in the Insurance Premium account respectively as:

Answer & Solution

72. In case of forfeiture of share, share forfeiture account is credited with

Answer & Solution

73. A share of Rs. 10 issued at 2 ruppes premium on which full amount is called is forfeited due to non-payment of Rs. 4. What will be amount recorded in share capital account

Answer & Solution

74. Depreciation is admissible on which of the following asset?

Answer & Solution

75. The method/criteria that cannot be used for the measurement of social cost benefit of a particular project is

Answer & Solution

76. Correct equation of balance sheet is

Answer & Solution

77. Money received on issue of share which is more than the nominal value of shares is credited to which account?

Answer & Solution

78. Net asset of a business on 1st January and 31st January are Rs. 39,000 and Rs. 38,000 respectively. Additional capital and drawing made by owner during the month is Rs. 2,000 and Rs. 6,000. What is net income earned during the month of January?

Answer & Solution

79. A company proposes to introduce a new product in the market. The company wants to maintain P/V Ratio at 25%. If variable cost of the product is 300, what will be the selling price?

Answer & Solution

80. Which of the following is not a ratio for analysis of profitability?

Answer & Solution

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71.
A prepayment of insurance premium will appear in the Balance Sheet and in the Insurance Premium account respectively as:

72.
In case of forfeiture of share, share forfeiture account is credited with

73.
A share of Rs. 10 issued at 2 ruppes premium on which full amount is called is forfeited due to non-payment of Rs. 4. What will be amount recorded in share capital account

74.
Depreciation is admissible on which of the following asset?

75.
The method/criteria that cannot be used for the measurement of social cost benefit of a particular project is

76.
Correct equation of balance sheet is

77.
Money received on issue of share which is more than the nominal value of shares is credited to which account?

78.
Net asset of a business on 1^st January and 31^st January are Rs. 39,000 and Rs. 38,000 respectively. Additional capital and drawing made by owner during the month is Rs. 2,000 and Rs. 6,000. What is net income earned during the month of January?

79.
A company proposes to introduce a new product in the market. The company wants to maintain P/V Ratio at 25%. If variable cost of the product is 300, what will be the selling price?

80.
Which of the following is not a ratio for analysis of profitability?