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.
Which of the following is true when a debtor pays his dues?

A. The asset side of the balance sheet will decrease

B. The asset side of the balance sheet will increase

C. The liability side of the balance sheet will increase

D. There is no change in total assets or total liabilities

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82.
Which of the following ratios indicate the short-term liquidity of a business?

A. Inventory turnover ratio

B. Debt equity ratio

C. Acid test ratio

D. Proprietary ratio

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83.
The maximum amount beyond which a company is not allowed to raise funds by issue of shares is

A. Issued capital

B. Reserve capital

C. Nominal capital

D. Subscribed capital

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84.
Based on which of the following concepts, is share capital account shown on the liability side of a balance sheet?

A. Business entity concept

B. Money measurement concept

C. Cost concept

D. Going concern concept

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85.
Which of the following is not considered as Research & Development costs?

A. Testing in search for product alternatives

B. Legal work on patent application

C. Modification of design of a process

D. Searching for application of new research findings

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86.
Amortization of unidentified intangible assets is in terms of

A. Conservatism concept

B. Materiality concept

C. Matching concept

D. Cost concept

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87.
Declared dividend should be classified in the balance sheet as a

A. Provision

B. Current liability

C. Reserve

D. Current asset

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88.
If the opening inventory of a business is undercast, it will

A. Increase gross profit and decrease net profit

B. Decrease gross profit as well as net profit

C. Increase value of assets

D. Increase gross profit as well as net profit

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89.
Which of the following is not a financial statement?

A. Profit and loss account

B. Profit and loss appropriation account

C. Balance sheet

D. Trial Balance

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90.
Provision for bad debts is made as per the

A. Conservatism concept

B. Cost concept

C. Consistency concept

D. Going concern concept

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Accounting MCQ Questions and Solutions with Explanations | Commerce

81. Which of the following is true when a debtor pays his dues?

Answer & Solution

82. Which of the following ratios indicate the short-term liquidity of a business?

Answer & Solution

83. The maximum amount beyond which a company is not allowed to raise funds by issue of shares is

Answer & Solution

84. Based on which of the following concepts, is share capital account shown on the liability side of a balance sheet?

Answer & Solution

85. Which of the following is not considered as Research & Development costs?

Answer & Solution

86. Amortization of unidentified intangible assets is in terms of

Answer & Solution

87. Declared dividend should be classified in the balance sheet as a

Answer & Solution

88. If the opening inventory of a business is undercast, it will

Answer & Solution

89. Which of the following is not a financial statement?

Answer & Solution

90. Provision for bad debts is made as per the

Answer & Solution

Read More Section(Accounting)

81.
Which of the following is true when a debtor pays his dues?

82.
Which of the following ratios indicate the short-term liquidity of a business?

83.
The maximum amount beyond which a company is not allowed to raise funds by issue of shares is

84.
Based on which of the following concepts, is share capital account shown on the liability side of a balance sheet?

85.
Which of the following is not considered as Research & Development costs?

86.
Amortization of unidentified intangible assets is in terms of

87.
Declared dividend should be classified in the balance sheet as a

88.
If the opening inventory of a business is undercast, it will

89.
Which of the following is not a financial statement?

90.
Provision for bad debts is made as per the