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

41.
If the net sales of the year is Rs. 2,50,000 and the debtors is Rs. 50,000, then the average collection period will be

A. 45 day

B. 54 day

C. 73 day

D. 37 day

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42.
An adjustment entry for prepaid expenses affects

A. Assets and Expenses

B. Assets and Income

C. Liabilities and Expenses

D. Liabilities and Assets

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43.
Over-capitalisation can be remedied:

A. By redemption of debentures

B. By increasing the rate of interest on debentures

C. By issue of bonus shares

D. By increasing the number of shares

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44.
On dissolution of a firm, if goodwill does not appear in the Balance Sheet of the firm, it is

A. calculated

B. not calculated

C. calculated and credited to Realisation a/c

D. calculated and directly credited to capital accounts of partners

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45.
Accounts do not record:

A. Profit and Loss

B. Liabilities

C. Number of Employees

D. Assets

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46.
A decreasing current ratio indicates:

A. A stable liquidity

B. An increasing liquidity

C. A strained liquidity

D. Satisfactory current solvency

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47.
Which of the following is not a business activity?

A. A person earns Rs. 500 profit selling his old T.V.

B. Activities of an insurance company

C. Running a provisional store

D. Cooking and selling food in a hotel

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48.
In the absence of any contract to the contrary, profit on dissolution of a partnership firm is credited to the partner's capital accounts:

A. In the ratio of their capitals just before dissolution

B. In the ratio of their capitals as originally contributed by them

C. In their profit sharing ratio

D. None of the above

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49.
Assertion (A): Premium receivedon issue of shares is credited to share premium account but not to profit and loss account.
Reason (R): Since share premium is not a trading profit, it is not distributed to shareholders.

A. Both (A) and (R) are correct, but (R) is not the correct explanation of (A)

B. (A) is incorrect, but (R) is correct

C. Both (A) and (R) are correct, and (R) is the correct explanation of (A)

D. (A) is correct, but (R) is incorrect

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50.
Total capital employed is equal to:

A. fixed assets

B. fixed assets + net working capital

C. total assets

D. net worth

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Accounting MCQ Questions and Solutions with Explanations | Commerce

41. If the net sales of the year is Rs. 2,50,000 and the debtors is Rs. 50,000, then the average collection period will be

Answer & Solution

42. An adjustment entry for prepaid expenses affects

Answer & Solution

43. Over-capitalisation can be remedied:

Answer & Solution

44. On dissolution of a firm, if goodwill does not appear in the Balance Sheet of the firm, it is

Answer & Solution

45. Accounts do not record:

Answer & Solution

46. A decreasing current ratio indicates:

Answer & Solution

47. Which of the following is not a business activity?

Answer & Solution

48. In the absence of any contract to the contrary, profit on dissolution of a partnership firm is credited to the partner's capital accounts:

Answer & Solution

49. Assertion (A): Premium receivedon issue of shares is credited to share premium account but not to profit and loss account. Reason (R): Since share premium is not a trading profit, it is not distributed to shareholders.

Answer & Solution

50. Total capital employed is equal to:

Answer & Solution

Read More Section(Accounting)

41.
If the net sales of the year is Rs. 2,50,000 and the debtors is Rs. 50,000, then the average collection period will be

42.
An adjustment entry for prepaid expenses affects

43.
Over-capitalisation can be remedied:

44.
On dissolution of a firm, if goodwill does not appear in the Balance Sheet of the firm, it is

45.
Accounts do not record:

46.
A decreasing current ratio indicates:

47.
Which of the following is not a business activity?

48.
In the absence of any contract to the contrary, profit on dissolution of a partnership firm is credited to the partner's capital accounts:

49.
Assertion (A): Premium receivedon issue of shares is credited to share premium account but not to profit and loss account.
Reason (R): Since share premium is not a trading profit, it is not distributed to shareholders.

50.
Total capital employed is equal to: