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

11.
X Ltd. forfeited 30 shares of Rs. 10 each fully called up for non payment of allotment money of Rs. 3 per share and call money of Rs. 4 per share. These share were re-issued for Rs. 8 per share fully paid. What is the amount to be transferred to Capital Reserve A/c:

A. Rs. 300

B. Rs. 60

C. Rs. 30

D. Rs. 90

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12.
As per the decision in the Garner vs Murray case, when the partner's capital accounts are fixed, any loss arising due to the capital deficiency in the insolvent partner's capital account is to be borne by solvent partners in the ratio of . . . . . . . .

A. profit sharing ratio

B. last agreed capital ratio

C. sacrificing ratio

D. gaining ratio

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13.
Consolidated financial statements are prepared on the principle

A. In the form the companies are one entity, in sub stance they are separate

B. In form companies are separate, in substance, they are one

C. In form and substance, the companies are one entity

D. In form and substance, the companies are separate

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14.
Which of the following is not an undistributed profit?

A. General Reserve account

B. Employee compensation reserve

C. Security premium reserve

D. Dividend Equalization reserve account

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15.
Variance analysis is related to

A. Ratio analysis

B. Standard costing

C. Marginal costing

D. None of these

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16.
Bonds or debentures issued by Securitization company should bear interest not less than

A. Bank Rate

B. Prime Lending Rate

C. 1.5% over the Bank Rate

D. 1.5% over the Saving Rate

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17.
Combined leverage can be used to measure the relationship between

A. EBIT and EPS

B. Sales and EPS

C. Sales and EBIT

D. PAT and EPS

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18.
The assumption that "Anticipate no profit and provide for all losses" is based on

A. Convention of conservatism

B. Convention of consistency

C. Convention of materiality

D. Convention of full disclosure

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19.
Trade discount is allowed for:

A. Prompt payment of cash

B. Purchasing products in bulk quantity

C. Payment of cash within 30 days time period

D. Opening of several units in different markets for business expansion

E. Maintaining good relationship with the customers

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20.
Security premium reserve cannot be used for

A. Payment of dividend to Members

B. Issue of bonus shares to members

C. Writing off pre-liminary expenses of company

D. Writing off discount on issue of debenture

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Accounting MCQ Questions and Solutions with Explanations | Commerce

11. X Ltd. forfeited 30 shares of Rs. 10 each fully called up for non payment of allotment money of Rs. 3 per share and call money of Rs. 4 per share. These share were re-issued for Rs. 8 per share fully paid. What is the amount to be transferred to Capital Reserve A/c:

Answer & Solution

12. As per the decision in the Garner vs Murray case, when the partner's capital accounts are fixed, any loss arising due to the capital deficiency in the insolvent partner's capital account is to be borne by solvent partners in the ratio of . . . . . . . .

Answer & Solution

13. Consolidated financial statements are prepared on the principle

Answer & Solution

14. Which of the following is not an undistributed profit?

Answer & Solution

15. Variance analysis is related to

Answer & Solution

16. Bonds or debentures issued by Securitization company should bear interest not less than

Answer & Solution

17. Combined leverage can be used to measure the relationship between

Answer & Solution

18. The assumption that "Anticipate no profit and provide for all losses" is based on

Answer & Solution

19. Trade discount is allowed for:

Answer & Solution

20. Security premium reserve cannot be used for

Answer & Solution

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11.
X Ltd. forfeited 30 shares of Rs. 10 each fully called up for non payment of allotment money of Rs. 3 per share and call money of Rs. 4 per share. These share were re-issued for Rs. 8 per share fully paid. What is the amount to be transferred to Capital Reserve A/c:

12.
As per the decision in the Garner vs Murray case, when the partner's capital accounts are fixed, any loss arising due to the capital deficiency in the insolvent partner's capital account is to be borne by solvent partners in the ratio of . . . . . . . .

13.
Consolidated financial statements are prepared on the principle

14.
Which of the following is not an undistributed profit?

15.
Variance analysis is related to

16.
Bonds or debentures issued by Securitization company should bear interest not less than

17.
Combined leverage can be used to measure the relationship between

18.
The assumption that "Anticipate no profit and provide for all losses" is based on

19.
Trade discount is allowed for:

20.
Security premium reserve cannot be used for