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

11.
A, B and C are partners in a firm. Their profit sharing ratio is 4 : 3 : 2. What will be their sacrificing ratio upon admission of D?

A. Equal

B. 4 : 3 : 2

C. 3 : 2 : 1

D. 5 : 3 : 2

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12.
When liquidation expenses are paid and borne by the seller company, then it is debited to

A. Realization A/c

B. Bank A/c

C. Goodwill A/c

D. None of the above

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13.
The benefits of debt financing over equity financing are likely to be highest in which of the following situations?

A. High marginal tax rates and low non-interest tax benefits

B. Low marginal tax rates and low non-interest tax benefits

C. High marginal tax rates and high non-interest tax benefits

D. Low marginal tax rates and high non-interest tax benefits

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14.
Recording of business transaction in a systematic manner and classifying them in ledger is called

A. Accounting

B. Book-keeping

C. Adjustment

D. Measurement

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15.
Preparation of consolidated statement as per AS-21 is

A. optional

B. mandatory for listed companies

C. mandatory for Pvt. Ltd

D. partnership firm

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16.
Income and Expenditure A/c includes figures relating to:

A. Previous year

B. Current year

C. Future year

D. All the above

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17.
Statement I IFRS are issued by International Accounting Standard Board (IASB).
Statement II IFRS-16, i.e.'leases' applies to annual reporting periods beginning on or after 1^st January, 2019.

A. Only statement I is true

B. Only statement II is true

C. Both statements are true

D. Both statements are false

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18.
Share can be issued at a discount only after . . . . . . . . year from the commencement of business.

A. shares can not be issued at discount

B. one

C. two

D. two and a half

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19.
Consider the following statements.
1. The entity concept of accounting is not applicable to sole trading concerns and partnership concerns.
2. Assets are to be shown in the balance sheet at their replacement cost on liquidation.
3. Money measurement concept takes into account changes in the value of monetary unit.
4. When a creditor is paid, this results in decrease of one asset and a corresponding increase in other asset.
Which of the statements given above are correct?

A. Both 1 and 2

B. Both 2 and 3

C. Both 3 and 4

D. None of the above

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20.
Which of the following statement about a minor partner is incorrect?

A. Minor can be admitted only to the benefits of an existing firm

B. Minor cannot be admitted to the benefits of a new firm taking minor as a partner

C. Minor cannot be a full-fledged partner in a firm

D. Minor can be a full-fledged partner in a firm

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Accounting MCQ Questions and Solutions with Explanations | Commerce

11. A, B and C are partners in a firm. Their profit sharing ratio is 4 : 3 : 2. What will be their sacrificing ratio upon admission of D?

Answer & Solution

12. When liquidation expenses are paid and borne by the seller company, then it is debited to

Answer & Solution

13. The benefits of debt financing over equity financing are likely to be highest in which of the following situations?

Answer & Solution

14. Recording of business transaction in a systematic manner and classifying them in ledger is called

Answer & Solution

15. Preparation of consolidated statement as per AS-21 is

Answer & Solution

16. Income and Expenditure A/c includes figures relating to:

Answer & Solution

17. Statement I IFRS are issued by International Accounting Standard Board (IASB). Statement II IFRS-16, i.e.'leases' applies to annual reporting periods beginning on or after 1st January, 2019.

Answer & Solution

18. Share can be issued at a discount only after . . . . . . . . year from the commencement of business.

Answer & Solution

Answer & Solution

20. Which of the following statement about a minor partner is incorrect?

Answer & Solution

Read More Section(Accounting)

11.
A, B and C are partners in a firm. Their profit sharing ratio is 4 : 3 : 2. What will be their sacrificing ratio upon admission of D?

12.
When liquidation expenses are paid and borne by the seller company, then it is debited to

13.
The benefits of debt financing over equity financing are likely to be highest in which of the following situations?

14.
Recording of business transaction in a systematic manner and classifying them in ledger is called

15.
Preparation of consolidated statement as per AS-21 is

16.
Income and Expenditure A/c includes figures relating to:

17.
Statement I IFRS are issued by International Accounting Standard Board (IASB).
Statement II IFRS-16, i.e.'leases' applies to annual reporting periods beginning on or after 1^st January, 2019.

18.
Share can be issued at a discount only after . . . . . . . . year from the commencement of business.

20.
Which of the following statement about a minor partner is incorrect?