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

81.
Match List-I with List-II and choose correct answer:

List-I List-II

P. Partner's loan 1. Debit balance of profit and loss

Q. Death of a partner 2. 6% interest

R. Loss in business 3. Joint life insurance policy

S. Revolution account 4. Profit and loss adjustment account

A. P-2, Q-3, R-1, S-4

B. P-1, Q-2, R-3, S-4

C. P-3, Q-2, R-1, S-4

D. P-4, Q-1, R-2, S-3

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82.
Accounting Standard relating to Accounting Policies is

A. AS-1

B. AS-2

C. AS-3

D. AS-4

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83.
Original cost of an asset is Rs. 57,000, scrap value Rs.2,000 and estimated life 10 years. What will be the amount of depreciation in the first year according to the sum of the year's digits methods:

A. Rs. 10,000

B. Rs. 5,900

C. Rs. 5,700

D. Rs. 5,500

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84.
The basic purpose of funds flow statement is to indicate the

A. funancial position

B. increase or decrease in working assets

C. increase or decrease in liabilities

D. increase or decrease in working capital

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85.
The accounting standard related to amalgamation of company is

A. AS-14

B. AS-20

C. AS-16

D. AS-12

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86.
When interest is to be allowed on the capitals of the partners, it is generally calculated on the:

A. Capital in the beginning of the year

B. Capital in the end of the year

C. Average capital

D. Capital at the end of the year less drawings, if any

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87.
Out of the following, which four expenditures would be recorded in the motor van account?
1. Cost Rs. 2,00,000
2. Registration Rs. 5,000
3. Petrol Rs. 2,000
4. Salary to driver Rs. 4,000
5. Writing the company name Rs. 3,500
6. Road tax paid (one time) Rs. 4,500
Select the correct answer:

A. 1, 2, 3 and 4

B. 1, 2, 5 and 6

C. 1, 3, 5 and 6

D. 1, 2, 3 and 5

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88.
Limited Partnership form of business organisation means

A. the number of partners is limited

B. the liability of some partners limited

C. the liability of all partners is limited

D. the amount of capital that can be raised is limited

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89.
Dividend declared and paid by a company is

A. an expense of the company

B. an income of the company

C. the distribution of profit earned by the company

D. the source of fund for the company

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90.
It is given in adjustment that during the accounting year, the trader distributed goods worth Rs. 5,000 as free samples. While preparing Final Accounts, this will be shown in

A. Profit and Loss Account

B. Both in Trading and Profit and Loss Account

C. Trading Account

D. Balance Sheet

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1 2 3 4 5 6 7 8 9 10

List-I	List-II
P. Partner's loan	1. Debit balance of profit and loss
Q. Death of a partner	2. 6% interest
R. Loss in business	3. Joint life insurance policy
S. Revolution account	4. Profit and loss adjustment account

Accounting MCQ Questions and Solutions with Explanations | Commerce

81. Match List-I with List-II and choose correct answer: List-I List-II P. Partner's loan 1. Debit balance of profit and loss Q. Death of a partner 2. 6% interest R. Loss in business 3. Joint life insurance policy S. Revolution account 4. Profit and loss adjustment account

Answer & Solution

82. Accounting Standard relating to Accounting Policies is

Answer & Solution

83. Original cost of an asset is Rs. 57,000, scrap value Rs.2,000 and estimated life 10 years. What will be the amount of depreciation in the first year according to the sum of the year's digits methods:

Answer & Solution

84. The basic purpose of funds flow statement is to indicate the

Answer & Solution

85. The accounting standard related to amalgamation of company is

Answer & Solution

86. When interest is to be allowed on the capitals of the partners, it is generally calculated on the:

Answer & Solution

87. Out of the following, which four expenditures would be recorded in the motor van account? 1. Cost Rs. 2,00,000 2. Registration Rs. 5,000 3. Petrol Rs. 2,000 4. Salary to driver Rs. 4,000 5. Writing the company name Rs. 3,500 6. Road tax paid (one time) Rs. 4,500 Select the correct answer:

Answer & Solution

88. Limited Partnership form of business organisation means

Answer & Solution

89. Dividend declared and paid by a company is

Answer & Solution

90. It is given in adjustment that during the accounting year, the trader distributed goods worth Rs. 5,000 as free samples. While preparing Final Accounts, this will be shown in

Answer & Solution

Read More Section(Accounting)

81.
Match List-I with List-II and choose correct answer:

List-I List-II

P. Partner's loan 1. Debit balance of profit and loss

Q. Death of a partner 2. 6% interest

R. Loss in business 3. Joint life insurance policy

S. Revolution account 4. Profit and loss adjustment account

82.
Accounting Standard relating to Accounting Policies is

83.
Original cost of an asset is Rs. 57,000, scrap value Rs.2,000 and estimated life 10 years. What will be the amount of depreciation in the first year according to the sum of the year's digits methods:

84.
The basic purpose of funds flow statement is to indicate the

85.
The accounting standard related to amalgamation of company is

86.
When interest is to be allowed on the capitals of the partners, it is generally calculated on the:

87.
Out of the following, which four expenditures would be recorded in the motor van account?
1. Cost Rs. 2,00,000
2. Registration Rs. 5,000
3. Petrol Rs. 2,000
4. Salary to driver Rs. 4,000
5. Writing the company name Rs. 3,500
6. Road tax paid (one time) Rs. 4,500
Select the correct answer:

88.
Limited Partnership form of business organisation means

89.
Dividend declared and paid by a company is

90.
It is given in adjustment that during the accounting year, the trader distributed goods worth Rs. 5,000 as free samples. While preparing Final Accounts, this will be shown in