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 term 'financial assets' includes all of the following except

A. technical knowledge

B. bank loan

C. lease obligations

D. shares, bonds and debentures

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92.
Which of the following does not increase in the working capital?

A. On increase in movable assets

B. On decrease in movable liability

C. On decrease in movable assets

D. None of these

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93.
Turnover ratios help the management in

A. managing the resources

B. evaluating the performance

C. planning the production

D. all the above

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94.
Registration of transfer of share is done

A. In the agency

B. In the company

C. With the registrar of companies

D. With the central government

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95.
Closing stock Rs. 53,400, cost of good sold Rs. 75,000 gross profit Rs. 5,000, purchases Rs. 82,000. Value of opening stock will be

A. Rs. 46,400

B. Rs. 41,400

C. Rs. 60,400

D. Rs. 55,400

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96.
Which one of the following statement is correct?

A. Subscription received in advance is not shown in Receipts and Payments account

B. Expenses and incomes on accrual basis are not shown in Receipts and Payments account

C. Capital receipts and capital expenditures are recorded in Income and Expenditure account

D. It is essential that balance sheet should accompany receipts and payments account

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97.
Assertion (A): When a company earns profit prior to its incorporation, it is called capital profit.
Reason (R): Capital profit cannot be used for distribution as a dividend to shareholders.
Which of the following is correct?

A. (A) is correct, but (R) is incorrect

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

C. (A) is incorrect, but (R) is correct

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

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98.
Inventory turnover ratio is

A. Activity Ratio

B. Profitability Ratio

C. Solvency Ratio

D. Liquidity Ratio

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99.
Five years ago, on old machine was purchased for Rs. 1,00,000 and Rs. 10,000 was paid on its repairing charges. There was also accumulated depreciation of Rs. 50,000 on this machinery. At the beginning of the sixth year it was sold for Rs. 60,000. Profit or loss from this sale will be

A. Profit of Rs. 10,000

B. Loss of Rs. 50,000

C. Loss of Rs. 40,000

D. No profit or no loss

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100.
If preference share capital of Rs. 5,00,000 is to be redeemed, and 25,000 equity shares of Rs. 10 each have been issued at a discount of 10%. For this purpose, the amount to be transferred to Capital Redemption Reserve will be:

A. Rs. 3,50,000

B. Rs. 2,50,000

C. Rs. 2,75,000

D. Rs. 2,25,000

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Accounting MCQ Questions and Solutions with Explanations | Commerce

91. The term 'financial assets' includes all of the following except

Answer & Solution

92. Which of the following does not increase in the working capital?

Answer & Solution

93. Turnover ratios help the management in

Answer & Solution

94. Registration of transfer of share is done

Answer & Solution

95. Closing stock Rs. 53,400, cost of good sold Rs. 75,000 gross profit Rs. 5,000, purchases Rs. 82,000. Value of opening stock will be

Answer & Solution

96. Which one of the following statement is correct?

Answer & Solution

97. Assertion (A): When a company earns profit prior to its incorporation, it is called capital profit. Reason (R): Capital profit cannot be used for distribution as a dividend to shareholders. Which of the following is correct?

Answer & Solution

98. Inventory turnover ratio is

Answer & Solution

99. Five years ago, on old machine was purchased for Rs. 1,00,000 and Rs. 10,000 was paid on its repairing charges. There was also accumulated depreciation of Rs. 50,000 on this machinery. At the beginning of the sixth year it was sold for Rs. 60,000. Profit or loss from this sale will be

Answer & Solution

100. If preference share capital of Rs. 5,00,000 is to be redeemed, and 25,000 equity shares of Rs. 10 each have been issued at a discount of 10%. For this purpose, the amount to be transferred to Capital Redemption Reserve will be:

Answer & Solution

Read More Section(Accounting)

91.
The term 'financial assets' includes all of the following except

92.
Which of the following does not increase in the working capital?

93.
Turnover ratios help the management in

94.
Registration of transfer of share is done

95.
Closing stock Rs. 53,400, cost of good sold Rs. 75,000 gross profit Rs. 5,000, purchases Rs. 82,000. Value of opening stock will be

96.
Which one of the following statement is correct?

97.
Assertion (A): When a company earns profit prior to its incorporation, it is called capital profit.
Reason (R): Capital profit cannot be used for distribution as a dividend to shareholders.
Which of the following is correct?

98.
Inventory turnover ratio is

99.
Five years ago, on old machine was purchased for Rs. 1,00,000 and Rs. 10,000 was paid on its repairing charges. There was also accumulated depreciation of Rs. 50,000 on this machinery. At the beginning of the sixth year it was sold for Rs. 60,000. Profit or loss from this sale will be

100.
If preference share capital of Rs. 5,00,000 is to be redeemed, and 25,000 equity shares of Rs. 10 each have been issued at a discount of 10%. For this purpose, the amount to be transferred to Capital Redemption Reserve will be: