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

41.
If equity share are forfeited then capital account is debited with

A. Face value of share

B. Prepaid amount of shares

C. Called amount on shares

D. Uncalled amount on shares

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42.
Depreciation of fixed assets is an example of

A. Capital expenditure

B. Revenue expenditure

C. Deferred revenue expenditure

D. Real expenditure

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43.
Gearing ratio means the following ratio:

A. Long-term debt + Preference capital/Net worth

B. Long-term debt/Equity capital

C. Long-term debt/Preference capital

D. Long-term debt/Equity capital + Preference capital

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44.
Preference Shares dividend & ratio of net profit after tax and total number of equity shares mutual ratio known as:

A. Solvency Ratio

B. Overall Profitability Ratio

C. Financial Position Ratio

D. Earnings per share

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45.
Which of the following should be shown on the asset side of the Balance sheet:

A. Preliminary Expenses

B. Outstanding Rent

C. Share Premium A/c

D. None of the above

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46.
Interest on capital provided to partners is calculated on

A. Capital at the end-drawing

B. Capital at the end of the year

C. On Average capital

D. Opening capital of the year

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47.
Which of the following types of information dues Ind AS-107 not require to be disclosed about the significance of financial instruments?

A. Fair value of financial instruments

B. Carrying amounts of categories of financial instruments

C. Information about the use of hedge accounting

D. Information about financial instruments, contracts and obligations under share based payment transactions

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48.
Which of the following is a deferred revenue expenditure?

A. Legal expenses incurred on the purchase of land

B. Expenses on a mega advertisement campaign while launching a new product

C. Expenses incurred on installation of a new machine

D. Wages paid for construction of an additional room in the building

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49.
For non-profit organisations, net income is ascertained by preparing:

A. Receipt and Payment Account

B. Profit and Loss Account

C. Fund Flow Statement

D. Income and Expenditute Account

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50.
Contingent liability is shown due to:

A. concept of full disclosure

B. concept of conservatism

C. concept of materiality

D. dual aspect concept

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Accounting MCQ Questions and Solutions with Explanations | Commerce

41. If equity share are forfeited then capital account is debited with

Answer & Solution

42. Depreciation of fixed assets is an example of

Answer & Solution

43. Gearing ratio means the following ratio:

Answer & Solution

44. Preference Shares dividend & ratio of net profit after tax and total number of equity shares mutual ratio known as:

Answer & Solution

45. Which of the following should be shown on the asset side of the Balance sheet:

Answer & Solution

46. Interest on capital provided to partners is calculated on

Answer & Solution

47. Which of the following types of information dues Ind AS-107 not require to be disclosed about the significance of financial instruments?

Answer & Solution

48. Which of the following is a deferred revenue expenditure?

Answer & Solution

49. For non-profit organisations, net income is ascertained by preparing:

Answer & Solution

50. Contingent liability is shown due to:

Answer & Solution

Read More Section(Accounting)

41.
If equity share are forfeited then capital account is debited with

42.
Depreciation of fixed assets is an example of

43.
Gearing ratio means the following ratio:

44.
Preference Shares dividend & ratio of net profit after tax and total number of equity shares mutual ratio known as:

45.
Which of the following should be shown on the asset side of the Balance sheet:

46.
Interest on capital provided to partners is calculated on

47.
Which of the following types of information dues Ind AS-107 not require to be disclosed about the significance of financial instruments?

48.
Which of the following is a deferred revenue expenditure?

49.
For non-profit organisations, net income is ascertained by preparing:

50.
Contingent liability is shown due to: