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

11.
Which of the following is not an accounting convention:

A. Consistency

B. Full disclosure

C. Materiality

D. Secrecy

Answer & Solution Discuss in Board Save for Later

12.
A purchase invoice for Rs. 1,250 was entered in the purchase book at Rs. 1,520 is called:

A. Errors of omission

B. Errors of commission

C. Errors of principle

D. Compensatory errors

E. Errors of duplication

Answer & Solution Discuss in Board Save for Later

13.
On issue of shares, the application money should not be less than

A. 2.5% of the nominal value of shares

B. 2.5% of the issue price of shares

C. 5.0% of the nominal value of shares

D. 5.0% of the issue price of shares

Answer & Solution Discuss in Board Save for Later

14.
The margin of safety/residue of security is equal to

A. Fixed cost + profit

B. Fixed cost + Support residue

C. Sales income - Sales income at the break even point

D. Sales income - Variable costs

Answer & Solution Discuss in Board Save for Later

15.
A and B are partners with a profit-sharing ratio of 2 : 1 and capitals of Rs. 3,00,000 and Rs. 2,00,000, respectively. They are allowed 6% per annum interest on their cap itals and are charged 10% per annum interest on their drawings. Their drawings during the year were Rs. 60,000 for A and Rs. 40,000 for B. B's share of net profit as per profit and loss appropriation account amounted to Rs. 40,000. The net profit of the firm before any appropriation was

A. Rs. 1,22,000

B. Rs. 1,13,000

C. Rs. 1,17,000

D. Rs. 1,45,000

Answer & Solution Discuss in Board Save for Later

16.
Which statement is true in case of Receipt and Payment A/c:

A. It is a nominal account

B. All cash and credit items are shown

C. It begins with credit balance

D. The closing balance indicates cash balance

Answer & Solution Discuss in Board Save for Later

17.
Advanced money received from a customer for supply of goods in future is a/an

A. Income

B. Expense

C. Current Liability

D. Current Asset

Answer & Solution Discuss in Board Save for Later

18.
The sum of the shares sacrificed by the old partners is equal to the share given to . . . . . . . . .

A. Newly admitted partner

B. Retired partner

C. Old partner who is now going to retire

D. Executors of the deceased partner

E. Insolvent partner

Answer & Solution Discuss in Board Save for Later

19.
If Opening Stock is Rs. 10,000, Net Purchase Rs. 70,000, Wages Rs. 2,500, Carriage Inward Rs. 500 and Closing Stock Rs. 15,000. What is the Manufacturing Cost?

A. Rs. 65,000

B. Rs. 83,000

C. Rs. 68,000

D. Rs. 73,000

Answer & Solution Discuss in Board Save for Later

20.
A worker is paid Rs. 1 per hour, and the standard time fixed in 10 hours. Whereas the rate of premium is 50%. One worker is able to complete the work in 8 hours. The wages payable to him under Halsey Plan will be:

A. Rs. 8

B. Rs. 10

C. Rs. 9

D. Rs. 11

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

11. Which of the following is not an accounting convention:

Answer & Solution

12. A purchase invoice for Rs. 1,250 was entered in the purchase book at Rs. 1,520 is called:

Answer & Solution

13. On issue of shares, the application money should not be less than

Answer & Solution

14. The margin of safety/residue of security is equal to

Answer & Solution

Answer & Solution

16. Which statement is true in case of Receipt and Payment A/c:

Answer & Solution

17. Advanced money received from a customer for supply of goods in future is a/an

Answer & Solution

18. The sum of the shares sacrificed by the old partners is equal to the share given to . . . . . . . . .

Answer & Solution

19. If Opening Stock is Rs. 10,000, Net Purchase Rs. 70,000, Wages Rs. 2,500, Carriage Inward Rs. 500 and Closing Stock Rs. 15,000. What is the Manufacturing Cost?

Answer & Solution

20. A worker is paid Rs. 1 per hour, and the standard time fixed in 10 hours. Whereas the rate of premium is 50%. One worker is able to complete the work in 8 hours. The wages payable to him under Halsey Plan will be:

Answer & Solution

Read More Section(Accounting)

11.
Which of the following is not an accounting convention:

12.
A purchase invoice for Rs. 1,250 was entered in the purchase book at Rs. 1,520 is called:

13.
On issue of shares, the application money should not be less than

14.
The margin of safety/residue of security is equal to

16.
Which statement is true in case of Receipt and Payment A/c:

17.
Advanced money received from a customer for supply of goods in future is a/an

18.
The sum of the shares sacrificed by the old partners is equal to the share given to . . . . . . . . .

19.
If Opening Stock is Rs. 10,000, Net Purchase Rs. 70,000, Wages Rs. 2,500, Carriage Inward Rs. 500 and Closing Stock Rs. 15,000. What is the Manufacturing Cost?

20.
A worker is paid Rs. 1 per hour, and the standard time fixed in 10 hours. Whereas the rate of premium is 50%. One worker is able to complete the work in 8 hours. The wages payable to him under Halsey Plan will be: