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

51.
Profit on the sale of furniture in a non profit organisation is to be shown on the:

A. Credit side of Profit and Loss a/c

B. Credit side of Income and Expenditure account

C. Receipt side of Receipts and Payment account

D. Assets side of Balance Sheet

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52.
Pooling of interest is a method of

A. valuation of inventory

B. calculation of purchase consideration

C. accounting of amalgamation

D. valuing goodwill

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53.
Match List-I with List-II and select the correct answer:

List-I List-II

a. Separate Entity concept 1. Past events

b. Dual Aspect concept 2. Accounting Equations

c. Money Measure concept 3. Business is distinct from its owner

d. Historical concept 4. Translation of events/transaction in money terms

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

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

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

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

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54.
Which one of the following statements is not true?

A. Conversion of debentures into preference shares will decrease debt-equity ratio

B. Long-term liabilities due for payment within a year should be treated as current liabilities

C. Higher operating ratio indicates higher profits

D. Cost of sales is a better numerator than sales while calculating stock turnover

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55.
The statement of changes in financial position shows

A. Sources and uses of funds

B. Assets and Liabilities

C. Income and Expenses

D. None of these

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56.
Which of the following statements is not correct?

A. Managerial accounting and cost accounting both are complementary to each of the in nature

B. Managerial accounting is concerned with the accounting information that is useful to management

C. Managerial accounting includes details of quantitative information only

D. Managerial accounting depends on cost accounting

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57.
Depreciation takes into account

A. Fall in value of asset

B. Decrease in usefulness

C. Decrease in the obsolescence of the asset

D. Decrease in asset due to wear and tear

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58.
A company shifted its factory after construction of a new building. During this process, Rs. 20,000 was spent on demolishing the old structure and Rs. 2,000 in moving the old stock. How will these expenses be classified?

A. Capital expenditure

B. Revenue expenditure

C. Capital and revenue expenditure respectively

D. Deferred revenue expenditure

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59.
Match the following

List-I List-II

a. The document from which the returns to suppliers are recorded is known as . . . . . . . . 1. Assets

b. Wages paid on erection of a new machinery should be debited to . . . . . . . . 2. Debit note

c. Prepaid expense is an item of . . . . . . . . 3. Credit note

d. The receiver of goods returned will send a . . . . . . . . to the person, who return the goods. 4. Machinery account

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

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

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

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

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60.
To measure the profitability of a business, among the following which ratio will be used?
i. Acid test ratio
ii. Return on capital employed
iii. Net profit ratio
iv. Interest protection ratio
v. Stock periodic ratio
6. Debt equity ratio

A. Only iii

B. i and iii

C. ii and iii

D. i, ii, iii and iv

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1 2 3 4 5 6 7 8 9 10

List-I	List-II
a. Separate Entity concept	1. Past events
b. Dual Aspect concept	2. Accounting Equations
c. Money Measure concept	3. Business is distinct from its owner
d. Historical concept	4. Translation of events/transaction in money terms

List-I	List-II
a. The document from which the returns to suppliers are recorded is known as . . . . . . . .	1. Assets
b. Wages paid on erection of a new machinery should be debited to . . . . . . . .	2. Debit note
c. Prepaid expense is an item of . . . . . . . .	3. Credit note
d. The receiver of goods returned will send a . . . . . . . . to the person, who return the goods.	4. Machinery account

Accounting MCQ Questions and Solutions with Explanations | Commerce

51. Profit on the sale of furniture in a non profit organisation is to be shown on the:

Answer & Solution

52. Pooling of interest is a method of

Answer & Solution

Answer & Solution

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

Answer & Solution

55. The statement of changes in financial position shows

Answer & Solution

56. Which of the following statements is not correct?

Answer & Solution

57. Depreciation takes into account

Answer & Solution

58. A company shifted its factory after construction of a new building. During this process, Rs. 20,000 was spent on demolishing the old structure and Rs. 2,000 in moving the old stock. How will these expenses be classified?

Answer & Solution

Answer & Solution

60. To measure the profitability of a business, among the following which ratio will be used? i. Acid test ratio ii. Return on capital employed iii. Net profit ratio iv. Interest protection ratio v. Stock periodic ratio 6. Debt equity ratio

Answer & Solution

Read More Section(Accounting)

51.
Profit on the sale of furniture in a non profit organisation is to be shown on the:

52.
Pooling of interest is a method of

54.
Which one of the following statements is not true?

55.
The statement of changes in financial position shows

56.
Which of the following statements is not correct?

57.
Depreciation takes into account

58.
A company shifted its factory after construction of a new building. During this process, Rs. 20,000 was spent on demolishing the old structure and Rs. 2,000 in moving the old stock. How will these expenses be classified?

60.
To measure the profitability of a business, among the following which ratio will be used?
i. Acid test ratio
ii. Return on capital employed
iii. Net profit ratio
iv. Interest protection ratio
v. Stock periodic ratio
6. Debt equity ratio