Accounting MCQ Questions and Solutions with Explanations | Commerce

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11.
Under Hire Purchase System, the interest for each period is computed on

A. Cash price remaining unpaid

B. Installment price remaining unpaid

C. The amount that has been agreed under hire purchase agreement

D. Cash price minus the amount of hire purchase installment paid

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12.
Which of the following is an implicit cost of increasing proportion of debt of a company?

A. P.E. Ratio of the company would increase

B. Rate of return of the company would decrease

C. Tax-shield would not be available on new debts

D. Equity shareholders would demand higher return

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13.
Net credit sales of business was Rs. 1,75,000. Debtors Turnover ratio is 8 times. Closing debtors were in excess of opening debtors by Rs. 7,000. Opening debtors will be

A. Rs. 18,375

B. Rs. 21,875

C. Rs. 25,375

D. None of the above

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14.
Which of the following accounts is a personal account?

A. Drawings account

B. Bank account

C. Prepaid Rent account

D. All of the above

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15.
Dual aspect concept results in the following accounting equation

A. Revenue = Expenses

B. Capital + Profits = Assets + Expenses

C. Capital + Liabilities = Assets

D. Capital + Drawings - Owner's Equity

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16.
Posting of a transaction means - That transaction is

A. Written in two accounts

B. Written in debit side of related account

C. Written in credit side of related account

D. Written on appropriate side of two accounts

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17.
X and Y made a profit of Rs. 5,000 and invested Rs. 25,000 as capital in the firm. The expected average rate of return on capital is 15%. If it is valued at three year purchase then amount of goodwill will be

A. Rs. 7,500

B. Rs. 3,750

C. Rs. 15,000

D. Rs. 9,000

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18.
Grouping of similar items and transferring those to the respective accounts is known as:

A. Journalizing

B. Ledger adjustment

C. Posting

D. Preparation of trial balance

E. Passing of adjustment entries

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19.
Which of the following transactions involving the issuance of shares does not come within the definition of a 'share based payment' under Ind AS-102?

A. Employee share purchase plans

B. Employee share option plans

C. Share based payment relating to an acquisition of a subsidiary

D. Share appreciation rights

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20.
"Goods cost in transit" is an overhead of

A. Sales

B. Factory

C. Office

D. Delivery

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Accounting MCQ Questions and Solutions with Explanations | Commerce

11. Under Hire Purchase System, the interest for each period is computed on

Answer & Solution

12. Which of the following is an implicit cost of increasing proportion of debt of a company?

Answer & Solution

13. Net credit sales of business was Rs. 1,75,000. Debtors Turnover ratio is 8 times. Closing debtors were in excess of opening debtors by Rs. 7,000. Opening debtors will be

Answer & Solution

14. Which of the following accounts is a personal account?

Answer & Solution

15. Dual aspect concept results in the following accounting equation

Answer & Solution

16. Posting of a transaction means - That transaction is

Answer & Solution

17. X and Y made a profit of Rs. 5,000 and invested Rs. 25,000 as capital in the firm. The expected average rate of return on capital is 15%. If it is valued at three year purchase then amount of goodwill will be

Answer & Solution

18. Grouping of similar items and transferring those to the respective accounts is known as:

Answer & Solution

19. Which of the following transactions involving the issuance of shares does not come within the definition of a 'share based payment' under Ind AS-102?

Answer & Solution

20. "Goods cost in transit" is an overhead of

Answer & Solution

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11.
Under Hire Purchase System, the interest for each period is computed on

12.
Which of the following is an implicit cost of increasing proportion of debt of a company?

13.
Net credit sales of business was Rs. 1,75,000. Debtors Turnover ratio is 8 times. Closing debtors were in excess of opening debtors by Rs. 7,000. Opening debtors will be

14.
Which of the following accounts is a personal account?

15.
Dual aspect concept results in the following accounting equation

16.
Posting of a transaction means - That transaction is

17.
X and Y made a profit of Rs. 5,000 and invested Rs. 25,000 as capital in the firm. The expected average rate of return on capital is 15%. If it is valued at three year purchase then amount of goodwill will be

18.
Grouping of similar items and transferring those to the respective accounts is known as:

19.
Which of the following transactions involving the issuance of shares does not come within the definition of a 'share based payment' under Ind AS-102?

20.
"Goods cost in transit" is an overhead of