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.
On the insolvency of partner, the deficiency of his capital account is borne by the solvent partners, according to the decision of Garner Vs. Murray's in

A. equal ratio

B. capital ratio

C. profit sharing ratio

D. none of the above

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52.
Read the following
Assertion (A): ''Share premium cannot be utilised for any purpose other than mentioned in Sec. 78 of the Companies Act."
Reason (R): "Share premium is a capital receipt."
Select the correct answer:

A. Both A and R are True and R is the correct explanation of A

B. Both A and R are true but R is not a correct explanation of A

C. A is true but R is false

D. A is false but R is true

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53.
Assets and liabilities are . . . . . . . . for determination of capital?

A. Revaluation

B. Distribution

C. Sacrifice

D. All of the above

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54.
Net profit + Non cash expenses = ?

A. Gross profit

B. Profit after tax

C. Fund from operation activity

D. Distributable profit

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55.
The current ratio of X limited is 2 : 1 and the quick ratio is 1.5 : 1. If the current liability is Rs. 80,000, then the value of the stock will be-

A. Rs. 1,60,000

B. Rs. 1,20,000

C. Rs. 40,000

D. Rs. 80,000

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56.
On purchase of old furniture Rs. 8,000 were spent on its repairs. This amount should be debited to

A. Repairs account

B. Furniture account

C. Wages account

D. None of the above

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57.
The basic concept related to profit and loss account is/are

A. realisation concept

B. matching concept

C. cost concept

D. Both A and B

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58.
If current ratio is 2.5 and working capital is Rs. 90,000 then the value of current assets would be

A. Rs. 60,000

B. Rs. 1,35,000

C. Rs. 1,50,000

D. Rs. 2,25,000

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59.
The Debt-Equity Ratio is a test of

A. Profitability

B. Solvency

C. Liquidity

D. Managerial efficiency

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60.
Break Even Point means

A. Sales × P/V ratio - Variable cost

B. Sales × P/V ratio + Fixed cost

C. Sales × P/V ratio - Fixed cost

D. Sales × P/V ratio + Variable cost

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Accounting MCQ Questions and Solutions with Explanations | Commerce

51. On the insolvency of partner, the deficiency of his capital account is borne by the solvent partners, according to the decision of Garner Vs. Murray's in

Answer & Solution

52. Read the following Assertion (A): ''Share premium cannot be utilised for any purpose other than mentioned in Sec. 78 of the Companies Act." Reason (R): "Share premium is a capital receipt." Select the correct answer:

Answer & Solution

53. Assets and liabilities are . . . . . . . . for determination of capital?

Answer & Solution

54. Net profit + Non cash expenses = ?

Answer & Solution

55. The current ratio of X limited is 2 : 1 and the quick ratio is 1.5 : 1. If the current liability is Rs. 80,000, then the value of the stock will be-

Answer & Solution

56. On purchase of old furniture Rs. 8,000 were spent on its repairs. This amount should be debited to

Answer & Solution

57. The basic concept related to profit and loss account is/are

Answer & Solution

58. If current ratio is 2.5 and working capital is Rs. 90,000 then the value of current assets would be

Answer & Solution

59. The Debt-Equity Ratio is a test of

Answer & Solution

60. Break Even Point means

Answer & Solution

Read More Section(Accounting)

51.
On the insolvency of partner, the deficiency of his capital account is borne by the solvent partners, according to the decision of Garner Vs. Murray's in

52.
Read the following
Assertion (A): ''Share premium cannot be utilised for any purpose other than mentioned in Sec. 78 of the Companies Act."
Reason (R): "Share premium is a capital receipt."
Select the correct answer:

53.
Assets and liabilities are . . . . . . . . for determination of capital?

54.
Net profit + Non cash expenses = ?

55.
The current ratio of X limited is 2 : 1 and the quick ratio is 1.5 : 1. If the current liability is Rs. 80,000, then the value of the stock will be-

56.
On purchase of old furniture Rs. 8,000 were spent on its repairs. This amount should be debited to

57.
The basic concept related to profit and loss account is/are

58.
If current ratio is 2.5 and working capital is Rs. 90,000 then the value of current assets would be

59.
The Debt-Equity Ratio is a test of

60.
Break Even Point means