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

61.
Which one of the following statements is not true as per the rule laid down in Garner Vs. Murray:

A. The solvent partners should bring in cash their share of loss on realisation

B. The loss on account of insolvency of a partner should then be borne by the solvent partners in the ratio of their capitals, after bringing in cash such loss on realisation

C. A solvent partner having debit balance in his capital account just before the dissolution will not be required to bear the loss on account of insolvency of a partner

D. A solvent partner having debit balance in his capital account, just before dissolution should bring in sufficient cash to raise his capital to his profit ratio

Answer & Solution Discuss in Board Save for Later

62.
Net worth of a business means:

A. equity capital

B. total assets

C. fixed assets - current assets

D. total assets - total external liabilities

Answer & Solution Discuss in Board Save for Later

63.
High ratio low profitability' is applicable to:

A. Net profit ratio

B. Rate of return on investment

C. Operating ratio

D. Stock turnover ratio

Answer & Solution Discuss in Board Save for Later

64.
The discount on issue of debentures is written off

A. before redemption of debentures

B. after redemption of debentures

C. in any period decided by the company

D. in no case later than the date of redemption

Answer & Solution Discuss in Board Save for Later

65.
The present value of the future contributions of employees is one of the methods of

A. HR accounting

B. inflation accounting

C. social accounting

D. responsibility accounting

Answer & Solution Discuss in Board Save for Later

66.
Match the following

List I List II

a. Capital is the difference between 1. Cost of goods sold from sales

b. Gross profit is ascertained by deducting 2. To find out cost of production

c. Wages paid for erecting machines are 3. Assets and liabilities

d. The manufacturing account is prepared 4. Debited to machinery account

A. a-4, b-3, c-2, d-1

B. a-4, b-3, c-1, d-2

C. a-3, b-4, c-1, d-2

D. a-3, b-1, c-4, d-2

Answer & Solution Discuss in Board Save for Later

67.
Trade mark, goodwill and building are shown under which head in company's balance sheet?

A. Fixed asset

B. Current asset

C. Loans and Advances

D. Investment

Answer & Solution Discuss in Board Save for Later

68.

Opening stock Rs. 2,000

Closing stock Rs. 3,000

Purchases Rs. 31,000

Debentures (representing ¹/₃ of owner's capital) Rs. 5,000

Sales Rs. 50,000

Capital turnover ratio will be:

A. 150%

B. 200%

C. 250%

D. 333.33%

Answer & Solution Discuss in Board Save for Later

69.
Share Allotment Account is a

A. Personal Account

B. Nominal Account

C. Real Account

D. Impersonal Account

Answer & Solution Discuss in Board Save for Later

70.
Incomplete method of accounting cannot be used by which of the following?

A. Sole trader

B. Partnership firm

C. Public limited company

D. A Lawyer

Answer & Solution Discuss in Board Save for Later

1 2 3 4 5 6 7 8 9 10

List I	List II
a. Capital is the difference between	1. Cost of goods sold from sales
b. Gross profit is ascertained by deducting	2. To find out cost of production
c. Wages paid for erecting machines are	3. Assets and liabilities
d. The manufacturing account is prepared	4. Debited to machinery account

Opening stock	Rs. 2,000
Closing stock	Rs. 3,000
Purchases	Rs. 31,000
Debentures (representing ¹/₃ of owner's capital)	Rs. 5,000
Sales	Rs. 50,000

Accounting MCQ Questions and Solutions with Explanations | Commerce

61. Which one of the following statements is not true as per the rule laid down in Garner Vs. Murray:

Answer & Solution

62. Net worth of a business means:

Answer & Solution

63. High ratio low profitability' is applicable to:

Answer & Solution

64. The discount on issue of debentures is written off

Answer & Solution

65. The present value of the future contributions of employees is one of the methods of

Answer & Solution

Answer & Solution

67. Trade mark, goodwill and building are shown under which head in company's balance sheet?

Answer & Solution

68. Opening stock Rs. 2,000 Closing stock Rs. 3,000 Purchases Rs. 31,000 Debentures (representing 1/3 of owner's capital) Rs. 5,000 Sales Rs. 50,000 Capital turnover ratio will be:

Answer & Solution

69. Share Allotment Account is a

Answer & Solution

70. Incomplete method of accounting cannot be used by which of the following?

Answer & Solution

Read More Section(Accounting)

61.
Which one of the following statements is not true as per the rule laid down in Garner Vs. Murray:

62.
Net worth of a business means:

63.
High ratio low profitability' is applicable to:

64.
The discount on issue of debentures is written off

65.
The present value of the future contributions of employees is one of the methods of

67.
Trade mark, goodwill and building are shown under which head in company's balance sheet?

68.

Opening stock Rs. 2,000

Closing stock Rs. 3,000

Purchases Rs. 31,000

Debentures (representing ¹/₃ of owner's capital) Rs. 5,000

Sales Rs. 50,000

Capital turnover ratio will be:

69.
Share Allotment Account is a

70.
Incomplete method of accounting cannot be used by which of the following?