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

41.
A company can re-issue its forfeited shares at a:

A. premium

B. face value

C. a discount

D. all of the above

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42.
In which order the following items will be shown on the liabilities side of the Balance Sheet of a Company:
1. Current liabilities and provisions
2. Secured loans
3. Share capital
4. Reserves and surplus
Select the correct answer:

A. 3, 4, 2, 1

B. 1, 2, 3, 4

C. 4, 3, 2, 1

D. 3, 4, 1, 2

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43.
A, Y and Z are partners in the ratio of 5 : 4 : 1. Z is guaranteed that his share of profit will not be less than Rs. 80,000 and any deficiency will be borne by A and Y in the ratio of 3 : 2. If the firm's profit is Rs. 5,60,000, how much deficiencywill be borne by Y?

A. Rs. 2,14,400

B. Rs. 14,400

C. Rs. 2,09,600

D. Rs. 9,600

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44.
To provide funds to pay to the retiring partner or to the representatives of a partner, generally . . . . . . . . . is created by partners.

A. sinking fund

B. joint life policy

C. reserve fund

D. None of these

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45.
The adjustment entry passed to eliminate the inter company owing is

A. Debit Amalgamation Adjustment A/c, Credit Sundry Debtors A/c

B. Debit Sundry Debtors A/c, Credit Statutory Reserve A/c

C. Debit Sundry Creditors A/c, Credit Sundry Debtors A/c

D. Debit Amalgamation Adjustment A/c, Credit Statutory Reserve A/c

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46.
The expenditure incurred for enhancing the capacity of an existing equipment is:

A. A revenue expenditure

B. A deferred revenue expenditure

C. A capital expenditure

D. A charge on the profits of the business

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47.
Arrange the following parties in the event of dissolution of a firm.
1. Secured creditors
2. Unsecured creditors
3. Partners who have granted loans
4. Partners who have contributed over and above profit sharing ratio
Select the correct answer:

A. 2, 1, 3, 4

B. 1, 2, 3, 4

C. 1, 2, 4, 3

D. 2, 1, 4, 3

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48.
Statement I In the traditional accounting, assets are shown at cost, year after year.
Statement II The cost in inflation accounting represent the cost that prevails at the time of reporting.
Which of the following is/are correct?

A. Both statements are correct

B. Both statements are incorrect

C. Statement I is correct, but statement II is incorrect

D. Statement II is correct, but statement I is incorrect

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49.
The liability of shareholder in a public company is limited to

A. Amount paid on shares

B. Nominal value of shares

C. Market value of shares

D. None of the above

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50.
A company has equity capital of Rs. 2,00,000 preference capital of Rs. 1,00,000, 12% debentures of Rs. 1,00,000, long-term loans of Rs. 2,00,000 and short-term loans of Rs. 1,00,000. The capital-gearing ratio will be:

A. 1 : 1

B. 0.5 : 1

C. 0.4 : 1

D. None of the above

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Accounting MCQ Questions and Solutions with Explanations | Commerce

41. A company can re-issue its forfeited shares at a:

Answer & Solution

42. In which order the following items will be shown on the liabilities side of the Balance Sheet of a Company: 1. Current liabilities and provisions 2. Secured loans 3. Share capital 4. Reserves and surplus Select the correct answer:

Answer & Solution

43. A, Y and Z are partners in the ratio of 5 : 4 : 1. Z is guaranteed that his share of profit will not be less than Rs. 80,000 and any deficiency will be borne by A and Y in the ratio of 3 : 2. If the firm's profit is Rs. 5,60,000, how much deficiencywill be borne by Y?

Answer & Solution

44. To provide funds to pay to the retiring partner or to the representatives of a partner, generally . . . . . . . . . is created by partners.

Answer & Solution

45. The adjustment entry passed to eliminate the inter company owing is

Answer & Solution

46. The expenditure incurred for enhancing the capacity of an existing equipment is:

Answer & Solution

47. Arrange the following parties in the event of dissolution of a firm. 1. Secured creditors 2. Unsecured creditors 3. Partners who have granted loans 4. Partners who have contributed over and above profit sharing ratio Select the correct answer:

Answer & Solution

48. Statement I In the traditional accounting, assets are shown at cost, year after year. Statement II The cost in inflation accounting represent the cost that prevails at the time of reporting. Which of the following is/are correct?

Answer & Solution

49. The liability of shareholder in a public company is limited to

Answer & Solution

50. A company has equity capital of Rs. 2,00,000 preference capital of Rs. 1,00,000, 12% debentures of Rs. 1,00,000, long-term loans of Rs. 2,00,000 and short-term loans of Rs. 1,00,000. The capital-gearing ratio will be:

Answer & Solution

Read More Section(Accounting)

41.
A company can re-issue its forfeited shares at a:

42.
In which order the following items will be shown on the liabilities side of the Balance Sheet of a Company:
1. Current liabilities and provisions
2. Secured loans
3. Share capital
4. Reserves and surplus
Select the correct answer:

43.
A, Y and Z are partners in the ratio of 5 : 4 : 1. Z is guaranteed that his share of profit will not be less than Rs. 80,000 and any deficiency will be borne by A and Y in the ratio of 3 : 2. If the firm's profit is Rs. 5,60,000, how much deficiencywill be borne by Y?

44.
To provide funds to pay to the retiring partner or to the representatives of a partner, generally . . . . . . . . . is created by partners.

45.
The adjustment entry passed to eliminate the inter company owing is

46.
The expenditure incurred for enhancing the capacity of an existing equipment is:

47.
Arrange the following parties in the event of dissolution of a firm.
1. Secured creditors
2. Unsecured creditors
3. Partners who have granted loans
4. Partners who have contributed over and above profit sharing ratio
Select the correct answer:

48.
Statement I In the traditional accounting, assets are shown at cost, year after year.
Statement II The cost in inflation accounting represent the cost that prevails at the time of reporting.
Which of the following is/are correct?

49.
The liability of shareholder in a public company is limited to

50.
A company has equity capital of Rs. 2,00,000 preference capital of Rs. 1,00,000, 12% debentures of Rs. 1,00,000, long-term loans of Rs. 2,00,000 and short-term loans of Rs. 1,00,000. The capital-gearing ratio will be: