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

71.
Drawings Account is

A. Nominal Account

B. Personal Account

C. Real Account

D. Fictitious Account

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72.
Compensating error affects

A. Trial balance

B. Balance sheet

C. Profit and loss a/c

D. None of the above

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73.
Match the following

List I List II

a. Revenue means the income of a . . . . . . . . nature. 1. Fixed assets

b. Premium paid on the life insurance policy of the proprietor will be debited to . . . . . . . . account. 2. Regular

c. Going concern concept is relevant for . . . . . . . . 3. Matching

d. Recognition of cost in the same period as associated revenues is called . . . . . . . . principle. 4. Drawings

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

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

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

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

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74.
Which of the following have contra entries?

A. Simple cash book

B. Petty cash book

C. Three column cash book

D. All cash books

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75.
If the goodwill A/c is raised at the time of retirement of a partner and is to be written off, then the capital accounts of the remaining partners are debited in

A. new profit sharing ratio

B. capital ratio

C. old profit sharing ratio

D. sacrificing ratio

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76.
Human Resource Accounting is the measurement and reporting . . . . . . . . and . . . . . . . . of people in organisational resources.

A. benefit, opportunities

B. cost, value

C. contract, agreement

D. none of these

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77.
X Ltd. forfeited 20 shares of Rs. 10 each on which Rs. 6 per share was paid. If out of these, 8 shares were reissued to Hari as fully paid on payment of Rs. 5.50 per share what would be the amount to the credit of share forfeited A/c:

A. Rs. 48

B. Rs. 72

C. Rs. 84

D. Rs. 120

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78.
The accounting concept that is used to prepare the Profit and Loss Account is known as:

A. Cost

B. Realisation

C. Matching

D. Disclosure

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79.
Which of the following is not correctly matched? (Class : Ratio)

A. Profitability ⇔ Operating Ratio

B. Activity ⇔ Proprietary Ratio

C. Liquidity ⇔ Current Ratio

D. Long term Solvency ⇔ Debt equity ratio

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80.
What is the underlying concept that support the immediate recognition of an estimated loss?

A. Substance over form

B. Consistency

C. Matching

D. Prudence

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1 2 3 4 5 6 7 8 9 10

List I	List II
a. Revenue means the income of a . . . . . . . . nature.	1. Fixed assets
b. Premium paid on the life insurance policy of the proprietor will be debited to . . . . . . . . account.	2. Regular
c. Going concern concept is relevant for . . . . . . . .	3. Matching
d. Recognition of cost in the same period as associated revenues is called . . . . . . . . principle.	4. Drawings

Accounting MCQ Questions and Solutions with Explanations | Commerce

71. Drawings Account is

Answer & Solution

72. Compensating error affects

Answer & Solution

Answer & Solution

74. Which of the following have contra entries?

Answer & Solution

75. If the goodwill A/c is raised at the time of retirement of a partner and is to be written off, then the capital accounts of the remaining partners are debited in

Answer & Solution

76. Human Resource Accounting is the measurement and reporting . . . . . . . . and . . . . . . . . of people in organisational resources.

Answer & Solution

77. X Ltd. forfeited 20 shares of Rs. 10 each on which Rs. 6 per share was paid. If out of these, 8 shares were reissued to Hari as fully paid on payment of Rs. 5.50 per share what would be the amount to the credit of share forfeited A/c:

Answer & Solution

78. The accounting concept that is used to prepare the Profit and Loss Account is known as:

Answer & Solution

79. Which of the following is not correctly matched? (Class : Ratio)

Answer & Solution

80. What is the underlying concept that support the immediate recognition of an estimated loss?

Answer & Solution

Read More Section(Accounting)

71.
Drawings Account is

72.
Compensating error affects

74.
Which of the following have contra entries?

75.
If the goodwill A/c is raised at the time of retirement of a partner and is to be written off, then the capital accounts of the remaining partners are debited in

76.
Human Resource Accounting is the measurement and reporting . . . . . . . . and . . . . . . . . of people in organisational resources.

77.
X Ltd. forfeited 20 shares of Rs. 10 each on which Rs. 6 per share was paid. If out of these, 8 shares were reissued to Hari as fully paid on payment of Rs. 5.50 per share what would be the amount to the credit of share forfeited A/c:

78.
The accounting concept that is used to prepare the Profit and Loss Account is known as:

79.
Which of the following is not correctly matched? (Class : Ratio)

80.
What is the underlying concept that support the immediate recognition of an estimated loss?