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

31.
Consider the following statements:
Assertion (A): In double account system, the final accounts of a company fails to disclose the true condition of its assets.
Reason (R): Because the assets of the company are shown at their cost price even when they are completely worn out.
Now, select your answer:

A. Both A and R are correct and R is the correct explanation of A

B. Both A and R are correct 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

Answer & Solution Discuss in Board Save for Later

32.
The liability of partners is . . . . . . . . .

A. Limited

B. Unlimited

C. Both limited and unlimited

D. None of these

Answer & Solution Discuss in Board Save for Later

33.
A company with total assets amounting to Rs. 15,00,000 (including Goodwill Rs. 1,50,000 discount on issue of shares Rs. 2,00,000 and accumulated loss Rs. 2,00,000) and the total liabilities amounting to Rs. 2,20,000 (including a contingent liability of Rs. 40,000) has been taken over by a new company for a purchase consideration of Rs. 11,50,000. the Goodwill a/c in the vendee company's books will appear at:

A. Rs. 90,000

B. Rs. 1,50,000

C. Rs. 4,20,000

D. Rs. 2,40,000

Answer & Solution Discuss in Board Save for Later

34.
The question contains two statement. One is Assertion (A) and the other is Reason (R). You have to examine both the statements carefully and decide whether the Assertion (A) and Reason (R) are separately true? and If so, then Reason is the correct explanation of the Assertion. Mark these items in the balance sheet.
Assertion (A) Balance sheet does not reveal ownership of business.
Reason (R) Assets are just unrefined cost.

A. A and R both are correct and R is correct explanation of A

B. A and R both are correct and R is not correct explanation of A

C. A is correct but R is correct

D. A is wrong, but R is correct

Answer & Solution Discuss in Board Save for Later

35.
The term 'depletion' is used in relation to

A. Fixed assets

B. Wasting assets

C. Current assets

D. Intangible assets

Answer & Solution Discuss in Board Save for Later

36.
A retiring partner continues to be liable for obligations incurred after his retirement:

A. If unpaid amount is transferred to his loan account

B. If he does not give public notice

C. It he starts a similar business elsewhere

D. In all the situations till he survies

Answer & Solution Discuss in Board Save for Later

37.
Which of the following is not current asset?

A. Debtors

B. Prepaid expense

C. Stock

D. Purchase

Answer & Solution Discuss in Board Save for Later

38.
The profit ratio of A, B and C, who are partners in a firm is 4 : 3 : 2. After D is admitted their sacrificing ratio will be:

A. Equal

B. 4 : 3 : 2

C. 3 : 2 : 1

D. 5 : 3 : 2

Answer & Solution Discuss in Board Save for Later

39.
Study the following transactions.
1. Raising of short-term loans.
2. Goods purchased for cash.
3. Payment of bonus in the form of shares.
4. Issue of shares in lieu of raw materials.
Select the correct answer:

A. Only 4

B. 2, 3 and 4

C. Both 3 and 4

D. all of the above

Answer & Solution Discuss in Board Save for Later

40.
A partnership agreement comes to an end

A. When a partner takes leave from the firm

B. On a death of a partner

C. On a partner becoming insolvent

D. All of the above

Answer & Solution Discuss in Board Save for Later

1 2 3 4 5 6 7 8 9 10

Accounting MCQ Questions and Solutions with Explanations | Commerce

Answer & Solution

32. The liability of partners is . . . . . . . . .

Answer & Solution

Answer & Solution

Answer & Solution

35. The term 'depletion' is used in relation to

Answer & Solution

36. A retiring partner continues to be liable for obligations incurred after his retirement:

Answer & Solution

37. Which of the following is not current asset?

Answer & Solution

38. The profit ratio of A, B and C, who are partners in a firm is 4 : 3 : 2. After D is admitted their sacrificing ratio will be:

Answer & Solution

39. Study the following transactions. 1. Raising of short-term loans. 2. Goods purchased for cash. 3. Payment of bonus in the form of shares. 4. Issue of shares in lieu of raw materials. Select the correct answer:

Answer & Solution

40. A partnership agreement comes to an end

Answer & Solution

Read More Section(Accounting)

32.
The liability of partners is . . . . . . . . .

35.
The term 'depletion' is used in relation to

36.
A retiring partner continues to be liable for obligations incurred after his retirement:

37.
Which of the following is not current asset?

38.
The profit ratio of A, B and C, who are partners in a firm is 4 : 3 : 2. After D is admitted their sacrificing ratio will be:

39.
Study the following transactions.
1. Raising of short-term loans.
2. Goods purchased for cash.
3. Payment of bonus in the form of shares.
4. Issue of shares in lieu of raw materials.
Select the correct answer:

40.
A partnership agreement comes to an end