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.
Depreciation is charged on

A. Current asset

B. Fixed asset

C. Intangible asset

D. Tangible asset

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22.
Consider the following statements:
Assertion (A): Every shareholder has a right to receive a share-certificate from the company whose shares he has purchased.
Reason (R): Share-certificate is a conclusive evidence of the title of the person to the shares which are written in his name in the certificate.
Now select your answer:

A. Both A and R are ture and R is the correct explanation of A

B. Both A and R are true and R is not the correct explanation of A

C. A is true, but R is false

D. A is false, but R is ture

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23.
If Earnings-Price (E-P) ratio is 0.05 and Earnings Per Share (EPS) is Rs. 8 the market price of the share will be

A. 40

B. 100

C. 160

D. 0.40

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24.
Nominal account that shows debit balance is-

A. Expense

B. Profit

C. Assets

D. Liabilty

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25.
Which of the following account will be debited if purchases of goods are made on credit?

A. Cash

B. Debtor

C. Creditor

D. Puchases

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26.
Del-credere commision is paid to the agent for:

A. His hard work

B. Meeting incidental expenses

C. Undertaking responsibility of payment from buyers

D. Achieving targets of sales set by the principal

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27.
Anu and Tanu are equal partners with fixed capitals of Rs. 2,00,000 and Rs. 1,00,000, respectively. After closing the accounts for the year ending 31^st March 2019, it was dis covered that the interest on capitals @ 8% per annum was omitted to be provided. In the adjusting entry

A. Anu will be credited with Rs. 6,000 and Tanu will be credited with Rs. 8,000

B. Anu will be debited with Rs. 16,000 and Tanu will be debited with Rs. 8,000

C. Anu will be credited with Rs. 4,000 and Tanu will be debited with Rs. 4,000

D. Anu will be debited with Rs. 4,000 and Tanu will be credited with Rs. 4,000

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28.
On 28^th March, 2019 stock worth Rs. 10,000 was lost by fire. The insurance company admitted full claim. On 31^st March. 2019 while preparing Final Accounts, it will be shown

A. Only in Trading Account

B. Only in Profit and Loss Account

C. Both in Trading and Profit and Loss Account

D. Both in Trading Account and Balance Sheet

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29.
Debenture holders:

A. are the owners of the company

B. have the right to vote

C. have the right to dividend

D. are the creditors of the company

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30.
Credit balance of bank account represents-

A. Capital

B. A liability

C. Asset

D. None of the above

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Accounting MCQ Questions and Solutions with Explanations | Commerce

21. Depreciation is charged on

Answer & Solution

Answer & Solution

23. If Earnings-Price (E-P) ratio is 0.05 and Earnings Per Share (EPS) is Rs. 8 the market price of the share will be

Answer & Solution

24. Nominal account that shows debit balance is-

Answer & Solution

25. Which of the following account will be debited if purchases of goods are made on credit?

Answer & Solution

26. Del-credere commision is paid to the agent for:

Answer & Solution

27. Anu and Tanu are equal partners with fixed capitals of Rs. 2,00,000 and Rs. 1,00,000, respectively. After closing the accounts for the year ending 31st March 2019, it was dis covered that the interest on capitals @ 8% per annum was omitted to be provided. In the adjusting entry

Answer & Solution

28. On 28th March, 2019 stock worth Rs. 10,000 was lost by fire. The insurance company admitted full claim. On 31st March. 2019 while preparing Final Accounts, it will be shown

Answer & Solution

29. Debenture holders:

Answer & Solution

30. Credit balance of bank account represents-

Answer & Solution

Read More Section(Accounting)

21.
Depreciation is charged on

23.
If Earnings-Price (E-P) ratio is 0.05 and Earnings Per Share (EPS) is Rs. 8 the market price of the share will be

24.
Nominal account that shows debit balance is-

25.
Which of the following account will be debited if purchases of goods are made on credit?

26.
Del-credere commision is paid to the agent for:

27.
Anu and Tanu are equal partners with fixed capitals of Rs. 2,00,000 and Rs. 1,00,000, respectively. After closing the accounts for the year ending 31^st March 2019, it was dis covered that the interest on capitals @ 8% per annum was omitted to be provided. In the adjusting entry

28.
On 28^th March, 2019 stock worth Rs. 10,000 was lost by fire. The insurance company admitted full claim. On 31^st March. 2019 while preparing Final Accounts, it will be shown

29.
Debenture holders:

30.
Credit balance of bank account represents-