Accounting MCQ Questions and Solutions with Explanations | Commerce

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61.
A limited liability company forfeited 30 shares of Rs. 10 each (fully called-up) for non payment of allotment amount of Rs. 3 per share and call amount of Rs. 4 per share. These shares were re-issued at Rs. 8 per share. In such situation amount transferred to capital reserve will be

A. Rs. 300

B. Rs. 60

C. Rs. 30

D. Rs. 90

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62.
Preference share of a company cannot be redeemed

A. At par

B. At premium

C. At Discount

D. At face value

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63.
The overall performance of a business unit is measured by:

A. Return on investment

B. Inventory turnover ratio

C. Net profit to sales ratio

D. Proprietary ratio

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64.
Underwriter is a person, who

A. Who arranges insurance policy

B. Manages import and export

C. Promises to purchase share unpurchased by public

D. Sells things on commission

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65.
X, Y and Z are partners in the ratio $$\frac{1}{2}:\frac{2}{5}$$ and $$\frac{1}{{10}}$$. If X retires then what is the profit sharing ratio between remaining partners?

A. 2 : 1

B. 4 : 1

C. 5 : 1

D. 3 : 1

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66.
Receipts and Payments Account is:

A. Real account

B. Personal account

C. Capital account

D. Nominal account

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67.
If out of net annual income of the year Rs. 42,000 the preference dividend and equity dividend paid are Rs. 7,000 and Rs. 24,000 respectively, and total equity capital be Rs. 1,40,000 the return on equity capital will be:

A. 30%

B. 27%

C. 25%

D. 22%

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68.
The basic principle of accounting "debit the receiver and credit the giver" is applicable to

A. Profit and loss account

B. Real account

C. Personal account

D. Cash account

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69.
Which of the following items should not be entered in Receipts and Payments Account of a club:

A. Sale of old newspaper

B. Loss on the sale of used asset

C. Payment of honorarium

D. Realisation from the sale of furniture

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70.
An increase in current liabilities in the schedule of changes in working capital shows

A. increase in working capital

B. no change in working capital

C. decrease in working capital

D. proportionate change in working capital

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Accounting MCQ Questions and Solutions with Explanations | Commerce

61. A limited liability company forfeited 30 shares of Rs. 10 each (fully called-up) for non payment of allotment amount of Rs. 3 per share and call amount of Rs. 4 per share. These shares were re-issued at Rs. 8 per share. In such situation amount transferred to capital reserve will be

Answer & Solution

62. Preference share of a company cannot be redeemed

Answer & Solution

63. The overall performance of a business unit is measured by:

Answer & Solution

64. Underwriter is a person, who

Answer & Solution

65. X, Y and Z are partners in the ratio $$\frac{1}{2}:\frac{2}{5}$$ and $$\frac{1}{{10}}$$. If X retires then what is the profit sharing ratio between remaining partners?

Answer & Solution

66. Receipts and Payments Account is:

Answer & Solution

67. If out of net annual income of the year Rs. 42,000 the preference dividend and equity dividend paid are Rs. 7,000 and Rs. 24,000 respectively, and total equity capital be Rs. 1,40,000 the return on equity capital will be:

Answer & Solution

68. The basic principle of accounting "debit the receiver and credit the giver" is applicable to

Answer & Solution

69. Which of the following items should not be entered in Receipts and Payments Account of a club:

Answer & Solution

70. An increase in current liabilities in the schedule of changes in working capital shows

Answer & Solution

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61.
A limited liability company forfeited 30 shares of Rs. 10 each (fully called-up) for non payment of allotment amount of Rs. 3 per share and call amount of Rs. 4 per share. These shares were re-issued at Rs. 8 per share. In such situation amount transferred to capital reserve will be

62.
Preference share of a company cannot be redeemed

63.
The overall performance of a business unit is measured by:

64.
Underwriter is a person, who

65.
X, Y and Z are partners in the ratio $$\frac{1}{2}:\frac{2}{5}$$ and $$\frac{1}{{10}}$$. If X retires then what is the profit sharing ratio between remaining partners?

66.
Receipts and Payments Account is:

67.
If out of net annual income of the year Rs. 42,000 the preference dividend and equity dividend paid are Rs. 7,000 and Rs. 24,000 respectively, and total equity capital be Rs. 1,40,000 the return on equity capital will be:

68.
The basic principle of accounting "debit the receiver and credit the giver" is applicable to

69.
Which of the following items should not be entered in Receipts and Payments Account of a club:

70.
An increase in current liabilities in the schedule of changes in working capital shows