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

31.
Which of these is not an essential feature of a partnership firm?

A. Mutual agency

B. Compulsory registration

C. Association of two or more persons

D. Existence of business

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32.
As per section 55 of Companies Act 2013, the redemption of preference shares can be made:

A. Out of profits available for dividend

B. From the issue of new shares

C. Partially from available profits and partially from issue of new shares

D. All are correct

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33.
Break-Even Point is

A. Where total revenue equals total costs

B. Where total revenue equals total fixed cost

C. Where total revenue equals total variable cost

D. Where total revenue exceeds the total costs

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34.
Firm has earned exceptionally high profits from a contract, which will not be renewed. In such a case, this profit will not be included in . . . . . . . .

A. profit share of the partners

B. calculation of the goodwill

C. Both A and B

D. None of these

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35.
Which of the following is not a subsidiary book?

A. Purchase book

B. Sales book

C. Bills receivables book

D. Assets books

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36.
Match list-I with list-II and select your answer:

List-I (Assets) List-II (Method of Depreciation)

a. Patterns 1. Annuity Method

b. Motor Lorries 2. Revalution Method

c. Copy-right 3. Fixed Instalment Method

d. Live Stock 4. Diminishing Balance Method

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

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

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

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

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37.
A, B and C are partners sharing profits and losses in 5 : 3 : 2. What will be new profit sharing ratio between A and C if B decided to take leave from the firm?

A. 5 : 3

B. 5 : 1

C. 5 : 2

D. 3 : 2

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38.
Which of the following errors cannot be located by the Trial Balance:

A. Errors in making totals of the ledger accounts

B. Errors in carrying forward of totals

C. Errors of omission in posting

D. Errors in balancing the ledger accounts

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39.
Which of the following statements is true:

A. Building account is a nominal account

B. Outstanding rent account is a non-personal account

C. Every debit has a corresponding credit

D. Incomes are debited

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40.
On 31^st March, 1995 the following balances of accounts appeared in the books of a firm Capital Account Rs. 2,00,000 General Reserve Rs. 50,000; Sundry Creditors Rs. 50,000 and Cash in hand Rs. 10,000. The firm is dissolved, and the assets realised Rs. 1,25,000. The loss on realisation is:

A. Rs. 1,75,000

B. Rs. 1,65,000

C. Rs. 1,15,000

D. Rs. 1,05,000

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1 2 3 4 5 6 7 8 9 10

List-I (Assets)	List-II (Method of Depreciation)
a. Patterns	1. Annuity Method
b. Motor Lorries	2. Revalution Method
c. Copy-right	3. Fixed Instalment Method
d. Live Stock	4. Diminishing Balance Method

Accounting MCQ Questions and Solutions with Explanations | Commerce

31. Which of these is not an essential feature of a partnership firm?

Answer & Solution

32. As per section 55 of Companies Act 2013, the redemption of preference shares can be made:

Answer & Solution

33. Break-Even Point is

Answer & Solution

34. Firm has earned exceptionally high profits from a contract, which will not be renewed. In such a case, this profit will not be included in . . . . . . . .

Answer & Solution

35. Which of the following is not a subsidiary book?

Answer & Solution

36. Match list-I with list-II and select your answer: List-I (Assets) List-II (Method of Depreciation) a. Patterns 1. Annuity Method b. Motor Lorries 2. Revalution Method c. Copy-right 3. Fixed Instalment Method d. Live Stock 4. Diminishing Balance Method

Answer & Solution

37. A, B and C are partners sharing profits and losses in 5 : 3 : 2. What will be new profit sharing ratio between A and C if B decided to take leave from the firm?

Answer & Solution

38. Which of the following errors cannot be located by the Trial Balance:

Answer & Solution

39. Which of the following statements is true:

Answer & Solution

40. On 31st March, 1995 the following balances of accounts appeared in the books of a firm Capital Account Rs. 2,00,000 General Reserve Rs. 50,000; Sundry Creditors Rs. 50,000 and Cash in hand Rs. 10,000. The firm is dissolved, and the assets realised Rs. 1,25,000. The loss on realisation is:

Answer & Solution

Read More Section(Accounting)

31.
Which of these is not an essential feature of a partnership firm?

32.
As per section 55 of Companies Act 2013, the redemption of preference shares can be made:

33.
Break-Even Point is

34.
Firm has earned exceptionally high profits from a contract, which will not be renewed. In such a case, this profit will not be included in . . . . . . . .

35.
Which of the following is not a subsidiary book?

36.
Match list-I with list-II and select your answer:

List-I (Assets) List-II (Method of Depreciation)

a. Patterns 1. Annuity Method

b. Motor Lorries 2. Revalution Method

c. Copy-right 3. Fixed Instalment Method

d. Live Stock 4. Diminishing Balance Method

37.
A, B and C are partners sharing profits and losses in 5 : 3 : 2. What will be new profit sharing ratio between A and C if B decided to take leave from the firm?

38.
Which of the following errors cannot be located by the Trial Balance:

39.
Which of the following statements is true:

40.
On 31^st March, 1995 the following balances of accounts appeared in the books of a firm Capital Account Rs. 2,00,000 General Reserve Rs. 50,000; Sundry Creditors Rs. 50,000 and Cash in hand Rs. 10,000. The firm is dissolved, and the assets realised Rs. 1,25,000. The loss on realisation is: