Accounting MCQ Questions and Solutions with Explanations | Commerce

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71.
With reference to the theory of contribution, which of the following statement is/are correct?
1. Contribution is the excess of sales over variable costs
2. Contribution is the excess of sales over total costs
Select the correct answer:

A. Only 1

B. Only 2

C. Both 1 and 2

D. Neither 1 nor 2

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72.
Which of the following statements is correct in regards to life-cycle costing?
1. It analyses the process of evaluating product profitability.
2. It helps planners to control costs more effectively.

A. Only 1

B. Only 2

C. Both 1 and 2

D. Neither 1 nor 2

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73.
Arrange the following in chronological order about assets as per liquidity order.
1. Debtors
2. Building
3. Cash
4. Stock

A. 2, 3, 1, 4

B. 3, 4, 1, 2

C. 1, 4, 2, 3

D. 3, 1, 4, 2

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74.
Which of the following accounting equation is not correct?

A. Assets - Liabilities = Equity

B. Assets - Equity = Liability

C. Assets + Liabilities = Equity

D. Liabilities + Equity = Asset

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75.
Which of the following accounts is Nominal A/c?

A. Interest A/c

B. Accrued Interest A/c

C. Outstanding Interest A/c

D. Prepaid Interest A/c

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76.
By which section of companies act, the final accounts of a company are governed?

A. Sec. 210

B. Sec. 211

C. Sec. 212

D. Sec. 213

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77.
When the current ratio is 2 : 5 and the amount of current liabilities is Rs. 25,000, the amount of current assets would be:

A. Rs. 62,000

B. Rs. 12,500

C. Rs. 10,000

D. None of the above

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78.
If original cost of a machine is Rs. 1,26,000 and its scrap value is Rs. 6000. what will be the amount of depreciation for II yr by using WDV method

A. Rs. 10,800

B. Rs. 11,340

C. Rs. 15,000

D. Rs. 14,000

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79.
X and Y sharing profits in the ratio of 7 : 3, admit Z for $${\frac{3}{7}^{{\text{th}}}}$$ share in the new firm in which he takes $${\frac{2}{7}^{{\text{th}}}}$$ from X and $${\frac{1}{7}^{{\text{th}}}}$$ form Y. The new ratio of X, Y and Z will be

A. 7 : 3 : 3

B. 4 : 2 : 3

C. 14 : 6 : 15

D. 29 : 11 : 30

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80.
The loss prior to incorporation cannot be treated

A. by debiting it to Profit & Loss A/c

B. by opening a goodwill account with the loss

C. by debiting it to goodwill account when some price for goodwill is paid at the time of purchasing the business

D. by debiting it to suspense A/c

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Accounting MCQ Questions and Solutions with Explanations | Commerce

71. With reference to the theory of contribution, which of the following statement is/are correct? 1. Contribution is the excess of sales over variable costs 2. Contribution is the excess of sales over total costs Select the correct answer:

Answer & Solution

72. Which of the following statements is correct in regards to life-cycle costing? 1. It analyses the process of evaluating product profitability. 2. It helps planners to control costs more effectively.

Answer & Solution

73. Arrange the following in chronological order about assets as per liquidity order. 1. Debtors 2. Building 3. Cash 4. Stock

Answer & Solution

74. Which of the following accounting equation is not correct?

Answer & Solution

75. Which of the following accounts is Nominal A/c?

Answer & Solution

76. By which section of companies act, the final accounts of a company are governed?

Answer & Solution

77. When the current ratio is 2 : 5 and the amount of current liabilities is Rs. 25,000, the amount of current assets would be:

Answer & Solution

78. If original cost of a machine is Rs. 1,26,000 and its scrap value is Rs. 6000. what will be the amount of depreciation for II yr by using WDV method

Answer & Solution

79. X and Y sharing profits in the ratio of 7 : 3, admit Z for $${\frac{3}{7}^{{\text{th}}}}$$ share in the new firm in which he takes $${\frac{2}{7}^{{\text{th}}}}$$ from X and $${\frac{1}{7}^{{\text{th}}}}$$ form Y. The new ratio of X, Y and Z will be

Answer & Solution

80. The loss prior to incorporation cannot be treated

Answer & Solution

Read More Section(Accounting)

71.
With reference to the theory of contribution, which of the following statement is/are correct?
1. Contribution is the excess of sales over variable costs
2. Contribution is the excess of sales over total costs
Select the correct answer:

72.
Which of the following statements is correct in regards to life-cycle costing?
1. It analyses the process of evaluating product profitability.
2. It helps planners to control costs more effectively.

73.
Arrange the following in chronological order about assets as per liquidity order.
1. Debtors
2. Building
3. Cash
4. Stock

74.
Which of the following accounting equation is not correct?

75.
Which of the following accounts is Nominal A/c?

76.
By which section of companies act, the final accounts of a company are governed?

77.
When the current ratio is 2 : 5 and the amount of current liabilities is Rs. 25,000, the amount of current assets would be:

78.
If original cost of a machine is Rs. 1,26,000 and its scrap value is Rs. 6000. what will be the amount of depreciation for II yr by using WDV method

79.
X and Y sharing profits in the ratio of 7 : 3, admit Z for $${\frac{3}{7}^{{\text{th}}}}$$ share in the new firm in which he takes $${\frac{2}{7}^{{\text{th}}}}$$ from X and $${\frac{1}{7}^{{\text{th}}}}$$ form Y. The new ratio of X, Y and Z will be

80.
The loss prior to incorporation cannot be treated