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

31.
The requirement of working capital depends on:

A. The period of operating cylce

B. The size of the business

C. The turnover of current assets

D. All the above A, B and C

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32.
The meaning of net invested capital is

A. Total assets - Current Liabilities

B. Total assets - Total Liabilities

C. Total assets - Fictitious Assets - Current Liabilities

D. None of the above

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33.
Contribution is

A. Sales - Purchase

B. Sales - Variable Cost

C. Sales - Fixed Cost

D. None of these

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34.
Which among the following is wrong?

A. $${\text{P/V Ratio}} = \frac{{{\text{Contribution}}}}{{{\text{Sales}}}}$$

B. $${\text{P/V Ratio}} = \frac{{{\text{Fixed Cost + Profit}}}}{{{\text{Sales}}}}$$

C. $${\text{P/V Ratio}} = \frac{{{\text{Sales }} - {\text{ Variable Cost}}}}{{{\text{Sales}}}}$$

D. $${\text{P/V Ratio}} = \frac{{{\text{Contribution}}}}{{{\text{Change in Sales}}}}$$

E. $${\text{P/V Ratio}} = \frac{{{\text{Fixed Cost}}}}{{{\text{Sales}}}}$$

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35.
Which of the following is not a tool of management accounting?

A. Financial Accounting

B. Inflation Accounting

C. Standard Costing

D. Analysis of Financial Statements

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36.
Assets of an organization is Rs. 21,315 and liabilities is Rs. 4,120. The capital of owner is

A. Rs. 21,315

B. Rs. 17,195

C. Rs. 25,435

D. Rs. 4120

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37.
The current ratio is ratio between:

A. Current assets and current liabilities

B. Liquid assets and current liabilities

C. Debts and equity

D. Fixed assets and sales

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38.
On 1^st June 2018, a partner introduced an additional capital Rs. 50,000 in the firm. In the absence of a part nership deed, on 31^st March 2019, he will receive an interest of

A. Rs. 3,000

B. Zero

C. Rs. 2,500

D. Rs. 1,800

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39.
Amount spent on advertisement campaign, the benefit of which is likely to last for at least three years, is
OR
Rs. 1,00,000 spent on special advertising compaign will be:

A. Capital expenditure

B. Revenue expenditure

C. Deferred revenue expenditure

D. Contingent expenditure

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40.
Realisation concept would apply when:

A. Money is realised from the debtors

B. Goods are delivered to customer

C. Order is received

D. none of the above

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Accounting MCQ Questions and Solutions with Explanations | Commerce

31. The requirement of working capital depends on:

Answer & Solution

32. The meaning of net invested capital is

Answer & Solution

33. Contribution is

Answer & Solution

34. Which among the following is wrong?

Answer & Solution

35. Which of the following is not a tool of management accounting?

Answer & Solution

36. Assets of an organization is Rs. 21,315 and liabilities is Rs. 4,120. The capital of owner is

Answer & Solution

37. The current ratio is ratio between:

Answer & Solution

38. On 1st June 2018, a partner introduced an additional capital Rs. 50,000 in the firm. In the absence of a part nership deed, on 31st March 2019, he will receive an interest of

Answer & Solution

39. Amount spent on advertisement campaign, the benefit of which is likely to last for at least three years, is OR Rs. 1,00,000 spent on special advertising compaign will be:

Answer & Solution

40. Realisation concept would apply when:

Answer & Solution

Read More Section(Accounting)

31.
The requirement of working capital depends on:

32.
The meaning of net invested capital is

33.
Contribution is

34.
Which among the following is wrong?

35.
Which of the following is not a tool of management accounting?

36.
Assets of an organization is Rs. 21,315 and liabilities is Rs. 4,120. The capital of owner is

37.
The current ratio is ratio between:

38.
On 1^st June 2018, a partner introduced an additional capital Rs. 50,000 in the firm. In the absence of a part nership deed, on 31^st March 2019, he will receive an interest of

39.
Amount spent on advertisement campaign, the benefit of which is likely to last for at least three years, is
OR
Rs. 1,00,000 spent on special advertising compaign will be:

40.
Realisation concept would apply when: