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.
If opening stock Rs. 50,000, closing stock Rs. 60,000 and cost of gold sold is Rs. 2,20,00, then stock turnover ratio will be

A. Two times

B. Three times

C. Four times

D. One times

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82.
Discount on issue of shares by a company should be shown on the:

A. Debit side of the Profit and Loss account

B. Asset side of the Balance Sheet

C. Credit side of the Profit and Loss account

D. Liability side of the Balance Sheet

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83.
Which one of the following statements is not true?

A. In the absence of partnership deed profit and loss is distributed among partners in equal ratio

B. Minor partner can get his share of profit

C. The relation between partners are created through deed

D. Registration of partnership is compulsory

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84.
"Every debit should have equal and corresponding credit." Which of the following Accounting Concept says so?

A. Matching Concept

B. Dual Aspect Concept

C. Accrual Concept

D. Business Entity Concept

E. Realization Concept

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85.
The objective of hedge accounting is to represent, in the financial statements, the effect of an entity's that use financial instruments to manage arising from particular risks that could affect profit or loss.

A. risk management activities, exposures

B. risk mitigation activities, credit losses

C. risk diversification activities, credit concentration

D. risk mitigation activities, credit exposures

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86.
If the current ratio of a firm is 2.5 : 1 and working capital is Rs. 90,000 then the amount of current liabilities will be

A. Rs. 2,25,000

B. Rs. 1,35,000

C. Rs. 60,000

D. Rs. 36,000

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87.
Asha and Vipasha are equal partners with fixed capitals of Rs. 5,00,000 and Rs. 2,00,000, respectively. After closing the accounts for the year ending 31^st March 2019, it was discovered that the interest on capitals was provided @ 6% per annum instead of 5% per annum. In the adjusting entry

A. Asha will be debited with Rs. 1,500 and Vipasha will be credited with Rs. 1,500

B. Asha will be credited with Rs. 1,500 and Vipasha will be debited with Rs. 1,500

C. Asha will be debited with Rs. 5,000 and Vipasha will be debited with Rs. 2,000

D. Asha will be credited with Rs. 5,000 and Vipasha will be credited with Rs. 2,000

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88.
Match the items of the following two lists and indicate the correct answer:

List-I List-II

a. Earning ability of a firm 1. Basis of accounting

b. Conservatism 2. P/V ratio

c. Cash profit 3. Cash flow statement

d. Cash and accrual 4. Prudence

A. a-2, b-4, c-3, d-1

B. a-2, b-1, c-4, d-3

C. a-3, b-4, c-1, d-2

D. a-3, b-4, c-2, d-1

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89.
The more accurate guide to liquidity of a firm is provided by:

A. The current ratio

B. The quick ratio

C. The receivable-turnover ratio

D. The inventory-turnover ratio

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90.
A machine was purchased on 1^st January 1987. It was depreciated by written down value method at the rate of 10% P.A. The depreciated value of machine as on 1^st January 1990 is Rs. 13,122. The cost of machine on 1^st January 1990 was

A. Rs. 20,000

B. Rs. 18,000

C. Rs. 22,000

D. Rs. 19,000

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1 2 3 4 5 6 7 8 9 10

List-I	List-II
a. Earning ability of a firm	1. Basis of accounting
b. Conservatism	2. P/V ratio
c. Cash profit	3. Cash flow statement
d. Cash and accrual	4. Prudence

Accounting MCQ Questions and Solutions with Explanations | Commerce

81. If opening stock Rs. 50,000, closing stock Rs. 60,000 and cost of gold sold is Rs. 2,20,00, then stock turnover ratio will be

Answer & Solution

82. Discount on issue of shares by a company should be shown on the:

Answer & Solution

83. Which one of the following statements is not true?

Answer & Solution

84. "Every debit should have equal and corresponding credit." Which of the following Accounting Concept says so?

Answer & Solution

85. The objective of hedge accounting is to represent, in the financial statements, the effect of an entity's that use financial instruments to manage arising from particular risks that could affect profit or loss.

Answer & Solution

86. If the current ratio of a firm is 2.5 : 1 and working capital is Rs. 90,000 then the amount of current liabilities will be

Answer & Solution

87. Asha and Vipasha are equal partners with fixed capitals of Rs. 5,00,000 and Rs. 2,00,000, respectively. After closing the accounts for the year ending 31st March 2019, it was discovered that the interest on capitals was provided @ 6% per annum instead of 5% per annum. In the adjusting entry

Answer & Solution

88. Match the items of the following two lists and indicate the correct answer: List-I List-II a. Earning ability of a firm 1. Basis of accounting b. Conservatism 2. P/V ratio c. Cash profit 3. Cash flow statement d. Cash and accrual 4. Prudence

Answer & Solution

89. The more accurate guide to liquidity of a firm is provided by:

Answer & Solution

90. A machine was purchased on 1st January 1987. It was depreciated by written down value method at the rate of 10% P.A. The depreciated value of machine as on 1st January 1990 is Rs. 13,122. The cost of machine on 1st January 1990 was

Answer & Solution

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81.
If opening stock Rs. 50,000, closing stock Rs. 60,000 and cost of gold sold is Rs. 2,20,00, then stock turnover ratio will be

82.
Discount on issue of shares by a company should be shown on the:

83.
Which one of the following statements is not true?

84.
"Every debit should have equal and corresponding credit." Which of the following Accounting Concept says so?

85.
The objective of hedge accounting is to represent, in the financial statements, the effect of an entity's that use financial instruments to manage arising from particular risks that could affect profit or loss.

86.
If the current ratio of a firm is 2.5 : 1 and working capital is Rs. 90,000 then the amount of current liabilities will be

87.
Asha and Vipasha are equal partners with fixed capitals of Rs. 5,00,000 and Rs. 2,00,000, respectively. After closing the accounts for the year ending 31^st March 2019, it was discovered that the interest on capitals was provided @ 6% per annum instead of 5% per annum. In the adjusting entry

88.
Match the items of the following two lists and indicate the correct answer:

List-I List-II

a. Earning ability of a firm 1. Basis of accounting

b. Conservatism 2. P/V ratio

c. Cash profit 3. Cash flow statement

d. Cash and accrual 4. Prudence

89.
The more accurate guide to liquidity of a firm is provided by:

90.
A machine was purchased on 1^st January 1987. It was depreciated by written down value method at the rate of 10% P.A. The depreciated value of machine as on 1^st January 1990 is Rs. 13,122. The cost of machine on 1^st January 1990 was