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.
A, B and C are partners in a firm sharing profits and losses in the ratio of 4 : 3 : 2. They agreed to take D into partnership and gave him $${\frac{1}{8}^{{\text{th}}}}$$ share. What will be their new profit sharing ratio?

A. 4 : 3 : 2 : 1

B. 28 : 21 : 14 : 9

C. 28 : 21 : 14 : 8

D. 4 : 1 : 2 : 1

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52.
Accounting starts where book keeping ends and . . . . . . . . begins where accounting ends

A. Auditing

B. Certification

C. Stock

D. Purchase

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53.
A concern should select an accounting policy which enables it to

A. pay the proper amount of income tax

B. calculate the correct amount of cash in hand

C. present a true and fair view of its state of affairs and profit or loss

D. Both A and B

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54.
If the operating ratio is 75% then the net ratio will be

A. 15%

B. 25%

C. 20%

D. None of these

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55.
A powerhouse originally built for Rs. 4,00,000 is to be replaced by a new one. The total cost of consturction is Rs. 14,00,000. But the estimated cost of construction of the original size powerhouse at present is Rs. 6,00,000. The revenue cost will be

A. Rs. 4,00,000

B. Rs. 4,50,000

C. Rs. 5,00,000

D. Rs. 6,00,000

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56.
Match List-I with List-II and select the correct answer:

List-I List-II

a. Measurement of income 1. Accrues to the equity of owners

b. Recognition of expense 2. Recognition of revenue
c. Basis of realization 3. Matching revenue with expenses

d. Identification of revenue 4. Accounting period

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

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

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

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

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57.
A and B are partners sharing profit and losses in 3 : 2. C is admitted in the firm for $${\frac{1}{5}^{{\text{th}}}}$$ share and he brings Rs. 10,000 as capital. What will be adjusted capital of B?

A. Rs. 10,000

B. Rs. 12,000

C. Rs. 14,000

D. Rs. 16,000

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58.
Average profit Rs. 20,000, normal profit Rs. 5,000, calculate goodwill on the basis of 3 year purchase of super profit

A. Rs. 40,000

B. Rs. 60,000

C. Rs. 50,000

D. Rs. 45,000

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59.
If profits are $$\frac{1}{4}$$ of cost, what is the share of profit in sales?

A. $$\frac{1}{3}$$

B. $$\frac{1}{4}$$

C. $$\frac{1}{5}$$

D. $$\frac{1}{6}$$

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60.
A and B share profits in the ratio of 7 : 3. They admitted C as a partner. A surrenders $${\frac{1}{4}^{{\text{th}}}}$$ of his share and B $${\frac{1}{3}^{{\text{rd}}}}$$ share to C. New profit sharing ratio among A, B and C would be:

A. 6 : 2 : 1

B. 6 : 2 : 2

C. 12 : 6 : 7

D. 21 : 8 : 11

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1 2 3 4 5 6 7 8 9 10

List-I	List-II
a. Measurement of income	1. Accrues to the equity of owners
b. Recognition of expense	2. Recognition of revenue
c. Basis of realization	3. Matching revenue with expenses
d. Identification of revenue	4. Accounting period

Accounting MCQ Questions and Solutions with Explanations | Commerce

51. A, B and C are partners in a firm sharing profits and losses in the ratio of 4 : 3 : 2. They agreed to take D into partnership and gave him $${\frac{1}{8}^{{\text{th}}}}$$ share. What will be their new profit sharing ratio?

Answer & Solution

52. Accounting starts where book keeping ends and . . . . . . . . begins where accounting ends

Answer & Solution

53. A concern should select an accounting policy which enables it to

Answer & Solution

54. If the operating ratio is 75% then the net ratio will be

Answer & Solution

55. A powerhouse originally built for Rs. 4,00,000 is to be replaced by a new one. The total cost of consturction is Rs. 14,00,000. But the estimated cost of construction of the original size powerhouse at present is Rs. 6,00,000. The revenue cost will be

Answer & Solution

56. Match List-I with List-II and select the correct answer: List-I List-II a. Measurement of income 1. Accrues to the equity of owners b. Recognition of expense 2. Recognition of revenue c. Basis of realization 3. Matching revenue with expenses d. Identification of revenue 4. Accounting period

Answer & Solution

57. A and B are partners sharing profit and losses in 3 : 2. C is admitted in the firm for $${\frac{1}{5}^{{\text{th}}}}$$ share and he brings Rs. 10,000 as capital. What will be adjusted capital of B?

Answer & Solution

58. Average profit Rs. 20,000, normal profit Rs. 5,000, calculate goodwill on the basis of 3 year purchase of super profit

Answer & Solution

59. If profits are $$\frac{1}{4}$$ of cost, what is the share of profit in sales?

Answer & Solution

60. A and B share profits in the ratio of 7 : 3. They admitted C as a partner. A surrenders $${\frac{1}{4}^{{\text{th}}}}$$ of his share and B $${\frac{1}{3}^{{\text{rd}}}}$$ share to C. New profit sharing ratio among A, B and C would be:

Answer & Solution

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51.
A, B and C are partners in a firm sharing profits and losses in the ratio of 4 : 3 : 2. They agreed to take D into partnership and gave him $${\frac{1}{8}^{{\text{th}}}}$$ share. What will be their new profit sharing ratio?

52.
Accounting starts where book keeping ends and . . . . . . . . begins where accounting ends

53.
A concern should select an accounting policy which enables it to

54.
If the operating ratio is 75% then the net ratio will be

55.
A powerhouse originally built for Rs. 4,00,000 is to be replaced by a new one. The total cost of consturction is Rs. 14,00,000. But the estimated cost of construction of the original size powerhouse at present is Rs. 6,00,000. The revenue cost will be

56.
Match List-I with List-II and select the correct answer:

List-I List-II

a. Measurement of income 1. Accrues to the equity of owners

b. Recognition of expense 2. Recognition of revenue
c. Basis of realization 3. Matching revenue with expenses

d. Identification of revenue 4. Accounting period

57.
A and B are partners sharing profit and losses in 3 : 2. C is admitted in the firm for $${\frac{1}{5}^{{\text{th}}}}$$ share and he brings Rs. 10,000 as capital. What will be adjusted capital of B?

58.
Average profit Rs. 20,000, normal profit Rs. 5,000, calculate goodwill on the basis of 3 year purchase of super profit

59.
If profits are $$\frac{1}{4}$$ of cost, what is the share of profit in sales?

60.
A and B share profits in the ratio of 7 : 3. They admitted C as a partner. A surrenders $${\frac{1}{4}^{{\text{th}}}}$$ of his share and B $${\frac{1}{3}^{{\text{rd}}}}$$ share to C. New profit sharing ratio among A, B and C would be: