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

21.
Accrual system of accounting is also known as

A. Cash system

B. Mercantile system

C. Receipt system

D. Government system

Answer & Solution Discuss in Board Save for Later

22.
Match the following

List-I List-II

a. Ind AS-223 1. Impairment of assets

b. Ind AS-27 2. Borrowing costs

c. Ind AS-36 3. Agriculture

d. Ind AS-41 4. Separate financial statements

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

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

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

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

Answer & Solution Discuss in Board Save for Later

23.
Earned, but yet not received income is treated as

A. Assets

B. Liability

C. Loss

D. Capital

Answer & Solution Discuss in Board Save for Later

24.
Secret reserves may not result by:

A. Premium on issue of shares

B. Profits prior to incorporation

C. Dividend equalization reserve

D. Reserve created out of profit on the sale of Fixed Assets

Answer & Solution Discuss in Board Save for Later

25.
If the operating ratio is 91.5 operating profit ratio will be:

A. 159.5%

B. 8.5%

C. 9.5%

D. None of the above

Answer & Solution Discuss in Board Save for Later

26.
The balance of property at cost has been Rs. 20,000 and Rs. 17,000 in 2015 and 2016, respectively. The profit on the sale of property of Rs. 2,000 is credited to capital reserve account and a new property costing Rs. 5,000 was bought in 2016. Determine the sale proceeds from the property.

A. Rs. 3,000

B. Rs. 7,000

C. Rs. 10,000

D. Rs. 15,000

Answer & Solution Discuss in Board Save for Later

27.
In the balance sheet, the preliminary expense of Rs. 10,000 was reduced to Rs. 500. It will be considered as.

A. Sale of pre-liminary expenses

B. Current asset

C. Adjustment in profit from operation

D. None of the above

Answer & Solution Discuss in Board Save for Later

28.
A partner of a firm becomes insolvent, loss due to it will be shared by other partners:

A. equally

B. in the ratio of their capital

C. in profit sharing ratio

D. none of the above

Answer & Solution Discuss in Board Save for Later

29.
Minimum rent is also known as

A. Dead rent

B. Fixed rent

C. Flat rent

D. All of the above

Answer & Solution Discuss in Board Save for Later

30.
Hire-purchase price of a machinery is Rs. 30,000 and its cash price is Rs. 24,000. Payment is to be made in three equal installments. State the interest of second installment.

A. Rs. 1,500

B. Rs. 3,000

C. Rs. 2,000

D. Rs. 2,400

Answer & Solution Discuss in Board Save for Later

1 2 3 4 5 6 7 8 9 10

List-I	List-II
a. Ind AS-223	1. Impairment of assets
b. Ind AS-27	2. Borrowing costs
c. Ind AS-36	3. Agriculture
d. Ind AS-41	4. Separate financial statements

Accounting MCQ Questions and Solutions with Explanations | Commerce

21. Accrual system of accounting is also known as

Answer & Solution

22. Match the following List-I List-II a. Ind AS-223 1. Impairment of assets b. Ind AS-27 2. Borrowing costs c. Ind AS-36 3. Agriculture d. Ind AS-41 4. Separate financial statements

Answer & Solution

23. Earned, but yet not received income is treated as

Answer & Solution

24. Secret reserves may not result by:

Answer & Solution

25. If the operating ratio is 91.5 operating profit ratio will be:

Answer & Solution

26. The balance of property at cost has been Rs. 20,000 and Rs. 17,000 in 2015 and 2016, respectively. The profit on the sale of property of Rs. 2,000 is credited to capital reserve account and a new property costing Rs. 5,000 was bought in 2016. Determine the sale proceeds from the property.

Answer & Solution

27. In the balance sheet, the preliminary expense of Rs. 10,000 was reduced to Rs. 500. It will be considered as.

Answer & Solution

28. A partner of a firm becomes insolvent, loss due to it will be shared by other partners:

Answer & Solution

29. Minimum rent is also known as

Answer & Solution

30. Hire-purchase price of a machinery is Rs. 30,000 and its cash price is Rs. 24,000. Payment is to be made in three equal installments. State the interest of second installment.

Answer & Solution

Read More Section(Accounting)

21.
Accrual system of accounting is also known as

22.
Match the following

List-I List-II

a. Ind AS-223 1. Impairment of assets

b. Ind AS-27 2. Borrowing costs

c. Ind AS-36 3. Agriculture

d. Ind AS-41 4. Separate financial statements

23.
Earned, but yet not received income is treated as

24.
Secret reserves may not result by:

25.
If the operating ratio is 91.5 operating profit ratio will be:

26.
The balance of property at cost has been Rs. 20,000 and Rs. 17,000 in 2015 and 2016, respectively. The profit on the sale of property of Rs. 2,000 is credited to capital reserve account and a new property costing Rs. 5,000 was bought in 2016. Determine the sale proceeds from the property.

27.
In the balance sheet, the preliminary expense of Rs. 10,000 was reduced to Rs. 500. It will be considered as.

28.
A partner of a firm becomes insolvent, loss due to it will be shared by other partners:

29.
Minimum rent is also known as

30.
Hire-purchase price of a machinery is Rs. 30,000 and its cash price is Rs. 24,000. Payment is to be made in three equal installments. State the interest of second installment.