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

81.
A private company does not:

A. Restrict the right to transfer the shares

B. Limit the number of its members

C. Appoint auditor

D. Publicly invite subscription to shares

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82.
A and B are partners sharing profit and losses in 5 : 3. They decided to admit C and provide him $${\frac{3}{{10}}^{{\text{th}}}}$$ share in profits. what will be new profit sharing ratio between A, B and C?

A. 10 : 20 : 30

B. 1 : 7 : 2

C. 3 : 6 : 1

D. 35 : 21 : 24

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83.
In case of insolvency of a partner, any balance in Reserve Fund or Profit and Loss A/c is distributed in all partners

A. equally

B. in profit sharing ratio

C. in the ratio of their capital

D. none of the above

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84.
Inventory of a manufacturing enterprise includes:

A. Raw materials

B. Work in progress

C. Finished stock

D. All the above

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85.
Cost, salvage and useful life of an asset are Rs. 10,000, Rs. 1,000 and 3 years respectively. The amount of depreciation as per sum of the years digit method for the first year will be

A. Rs. 5,000

B. Rs. 4,500

C. Rs. 3,333

D. Rs. 3,000

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86.
Excess of cost of investment over paid-up value of the shares is considered as

A. goodwill

B. capital reserve

C. minority interest

D. none of the above

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87.
Loss caused by theft of cash by cashier during business hours is a loss of

A. Revenue nature

B. Capital nature

C. Deferred revenue nature

D. None of these

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88.
A company cannot redeem its debentures

A. Out of accumulated profits

B. Out of accumulated losses

C. By purchase of own debentures from market

D. By conversion of debentures into shares

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89.
Statement I If the going concern concept is no longer valid, then all prepaid assets would be completely written-off immediately.
Statement II Also land held as an investment would be valued at its realisable value.

A. Both statements are correct

B. Both statements are incorrect

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

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

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90.
Match the following:

List-I List-II

a. At the beginning of each month 1. 5 and ¹/₂ month

b. At the end of each month quarter 2. 6 and ¹/₂ month

c. At the beginning of each quarter 3. 4 and ¹/₂ month

d. At the end of each 4. 7 and ¹/₂ month

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

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

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

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

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1 2 3 4 5 6 7 8 9 10

List-I	List-II
a. At the beginning of each month	1. 5 and ¹/₂ month
b. At the end of each month quarter	2. 6 and ¹/₂ month
c. At the beginning of each quarter	3. 4 and ¹/₂ month
d. At the end of each	4. 7 and ¹/₂ month

Accounting MCQ Questions and Solutions with Explanations | Commerce

81. A private company does not:

Answer & Solution

82. A and B are partners sharing profit and losses in 5 : 3. They decided to admit C and provide him $${\frac{3}{{10}}^{{\text{th}}}}$$ share in profits. what will be new profit sharing ratio between A, B and C?

Answer & Solution

83. In case of insolvency of a partner, any balance in Reserve Fund or Profit and Loss A/c is distributed in all partners

Answer & Solution

84. Inventory of a manufacturing enterprise includes:

Answer & Solution

85. Cost, salvage and useful life of an asset are Rs. 10,000, Rs. 1,000 and 3 years respectively. The amount of depreciation as per sum of the years digit method for the first year will be

Answer & Solution

86. Excess of cost of investment over paid-up value of the shares is considered as

Answer & Solution

87. Loss caused by theft of cash by cashier during business hours is a loss of

Answer & Solution

88. A company cannot redeem its debentures

Answer & Solution

89. Statement I If the going concern concept is no longer valid, then all prepaid assets would be completely written-off immediately. Statement II Also land held as an investment would be valued at its realisable value.

Answer & Solution

90. Match the following: List-I List-II a. At the beginning of each month 1. 5 and 1/2 month b. At the end of each month quarter 2. 6 and 1/2 month c. At the beginning of each quarter 3. 4 and 1/2 month d. At the end of each 4. 7 and 1/2 month

Answer & Solution

Read More Section(Accounting)

81.
A private company does not:

82.
A and B are partners sharing profit and losses in 5 : 3. They decided to admit C and provide him $${\frac{3}{{10}}^{{\text{th}}}}$$ share in profits. what will be new profit sharing ratio between A, B and C?

83.
In case of insolvency of a partner, any balance in Reserve Fund or Profit and Loss A/c is distributed in all partners

84.
Inventory of a manufacturing enterprise includes:

85.
Cost, salvage and useful life of an asset are Rs. 10,000, Rs. 1,000 and 3 years respectively. The amount of depreciation as per sum of the years digit method for the first year will be

86.
Excess of cost of investment over paid-up value of the shares is considered as

87.
Loss caused by theft of cash by cashier during business hours is a loss of

88.
A company cannot redeem its debentures

89.
Statement I If the going concern concept is no longer valid, then all prepaid assets would be completely written-off immediately.
Statement II Also land held as an investment would be valued at its realisable value.

90.
Match the following:

List-I List-II

a. At the beginning of each month 1. 5 and ¹/₂ month

b. At the end of each month quarter 2. 6 and ¹/₂ month

c. At the beginning of each quarter 3. 4 and ¹/₂ month

d. At the end of each 4. 7 and ¹/₂ month