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

51.
If preference shares of Rs. 2,50,000 are to be redeemed and for that 12,500 equity shares of Rs. 10 each are to be issued at 10% discount, then the amount transferred to capital redemption fund will be

A. Rs. 1,75,000

B. Rs. 1,25,000

C. Rs. 1,37,000

D. Rs. 1,12,000

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52.
Give:

Current ratio 2.5

Liquid ratio 1.5

Working capital Rs. 1,20,000

Fixed Assets Rs. 3,00,000

Stock in trade will be:

A. Rs. 60,000

B. Rs. 80,000

C. Rs. 1,00,000

D. Rs. 1,20,000

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53.
Calls paid in advance is shown separately on the following:

A. liabilities side of B/s

B. asset side of B/s

C. debit side of P.L. a/c

D. credit side of P.L. a/c

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54.
The break even point at which-

A. Total revenue is equal to total cost

B. Contribution is equal to the total fixed cost

C. Neither profit nor loss

D. All of the above

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55.
Accounting process does not include:

A. Recording

B. Classifying

C. Simplifying

D. Summarising

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56.
A firms has inventory turnover of 3 and cost of goods sold is Rs. 2,70,000. With better inventory management, the inventory turnover is increased to 5. This would result in

A. Increase in inventory by Rs. 54,000

B. Decrease in inventory by Rs. 36,000

C. Increase in cost of goods sold by Rs. 20,000

D. Decrease in inventory by Rs. 90,000

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57.

Opening Stock Rs. 15,000

Purchases Rs. 40,000

Cost of goods sold Rs. 52,000

Sales Rs. 57,000

Gross profit on gross loss is?

A. Rs. 12,000

B. Rs. 5,000

C. Rs. 5,000 (Loss)

D. Rs. 7,000

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58.
What is the prescribed order of writing the following provisions in the Balance Sheet of companies as required by the Indian Companies Act, 1956, Part I, Schedule VI:
1. Provision for contingencies
2. Proposed dividends
3. Provision for taxation
4. Provision for Provident Fund scheme
Select your answer:

A. 3, 4, 2, 1

B. 3, 2, 1, 4

C. 2, 1, 3, 4

D. 4, 3, 2, 1

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59.
IFRS-2 applies to share-based payment transactions in which an entity . . . . . . . . goods or services.

A. acquires

B. receives

C. transfers

D. Both A and B

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60.
Which of the following is correct?
1. Unrealised dividend is an asset to the company
2. Dividend declared between two annual general meeting is called interim dividend
3. A company can distribute both interim and final dividend in the same financial year
Choose the correct answer:

A. 2 and 3

B. 1, 2 and 3

C. 1 and 3

D. 1 and 2

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1 2 3 4 5 6 7 8 9 10

Current ratio	2.5
Liquid ratio	1.5
Working capital	Rs. 1,20,000
Fixed Assets	Rs. 3,00,000

Opening Stock	Rs. 15,000
Purchases	Rs. 40,000
Cost of goods sold	Rs. 52,000
Sales	Rs. 57,000

Accounting MCQ Questions and Solutions with Explanations | Commerce

51. If preference shares of Rs. 2,50,000 are to be redeemed and for that 12,500 equity shares of Rs. 10 each are to be issued at 10% discount, then the amount transferred to capital redemption fund will be

Answer & Solution

52. Give: Current ratio 2.5 Liquid ratio 1.5 Working capital Rs. 1,20,000 Fixed Assets Rs. 3,00,000 Stock in trade will be:

Answer & Solution

53. Calls paid in advance is shown separately on the following:

Answer & Solution

54. The break even point at which-

Answer & Solution

55. Accounting process does not include:

Answer & Solution

56. A firms has inventory turnover of 3 and cost of goods sold is Rs. 2,70,000. With better inventory management, the inventory turnover is increased to 5. This would result in

Answer & Solution

57. Opening Stock Rs. 15,000 Purchases Rs. 40,000 Cost of goods sold Rs. 52,000 Sales Rs. 57,000 Gross profit on gross loss is?

Answer & Solution

Answer & Solution

59. IFRS-2 applies to share-based payment transactions in which an entity . . . . . . . . goods or services.

Answer & Solution

60. Which of the following is correct? 1. Unrealised dividend is an asset to the company 2. Dividend declared between two annual general meeting is called interim dividend 3. A company can distribute both interim and final dividend in the same financial year Choose the correct answer:

Answer & Solution

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51.
If preference shares of Rs. 2,50,000 are to be redeemed and for that 12,500 equity shares of Rs. 10 each are to be issued at 10% discount, then the amount transferred to capital redemption fund will be

52.
Give:

Current ratio 2.5

Liquid ratio 1.5

Working capital Rs. 1,20,000

Fixed Assets Rs. 3,00,000

Stock in trade will be:

53.
Calls paid in advance is shown separately on the following:

54.
The break even point at which-

55.
Accounting process does not include:

56.
A firms has inventory turnover of 3 and cost of goods sold is Rs. 2,70,000. With better inventory management, the inventory turnover is increased to 5. This would result in

57.

Opening Stock Rs. 15,000

Purchases Rs. 40,000

Cost of goods sold Rs. 52,000

Sales Rs. 57,000

Gross profit on gross loss is?

59.
IFRS-2 applies to share-based payment transactions in which an entity . . . . . . . . goods or services.

60.
Which of the following is correct?
1. Unrealised dividend is an asset to the company
2. Dividend declared between two annual general meeting is called interim dividend
3. A company can distribute both interim and final dividend in the same financial year
Choose the correct answer: