Accounting MCQ Questions and Solutions with Explanations | Commerce

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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

31.
Which one of the following concept is used as fund in the preparation of Funds Flow Statement?

A. Current Assets

B. Working Capital

C. Cash

D. All Financial Resources

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32.
The effect of surrender of shares is the same as of shares:

A. Issue

B. Forfeiture

C. Re-Issue

D. None of these

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33.
Calculate the interest on drawings assuming the rate @ 10% p.a for the year ended 31^st December 2016, for the withdrawals of Rs. 2000 made at the beginning of each month

A. Rs. 1,100

B. Rs. 1,200

C. Rs. 1,300

D. Rs. 1,400

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34.
The principle 'anticipate no profit and provide for all possible losses' emanates from:

A. The convention of relevance

B. The consistency concept

C. The materiality concept

D. The conservatism concept

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35.
Which of the following errors will not affect the trial balance?

A. Goods for Rs. 300 purchased on cash, expenses account was debited instead of purchases account

B. Purchases Returns Book for December was overcast by Rs. 200

C. Sales book carried forward Rs. 2200 instead of Rs. 2000

D. None of the above

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36.
If a share of Rs. 100 issued at a discount of Rs. 5 of which full amount has been called up is forfeited for nonpayment of final call of Rs. 20, the share capital account will be debited by

A. Rs. 80

B. Rs. 100

C. Rs. 95

D. Rs. 105

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37.
That portion of the share capital which can be called up only on the winding-up of the company is the

A. reserve capital

B. subscribed capital

C. issued capital

D. authorised capital

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38.
Consider the following items:
i. Debentures
ii. Prepaid rent
iii. Interest accrued
iv. Bank overdraft
Which of them are current liabilities:

A. i, ii, iii and iv

B. iv

C. ii, iii and iv

D. i, ii and iii

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39.
During the Year 2004, the income from subscription was Rs. 4,500, subscription received in advance Rs. 360. On 31^st December 2004, the outstanding subscription was Rs. 140. The amount of subscription to be shown in Receipts and Payments a/c for the year 2004 would be

A. Rs. 4,500

B. Rs. 5,000

C. Rs. 4,000

D. None of the above

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40.
When a company takes over another one and clearly becomes a new owner, the action is called

A. merger

B. acquisition

C. strategic alliance

D. none of these

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Accounting MCQ Questions and Solutions with Explanations | Commerce

31. Which one of the following concept is used as fund in the preparation of Funds Flow Statement?

Answer & Solution

32. The effect of surrender of shares is the same as of shares:

Answer & Solution

33. Calculate the interest on drawings assuming the rate @ 10% p.a for the year ended 31st December 2016, for the withdrawals of Rs. 2000 made at the beginning of each month

Answer & Solution

34. The principle 'anticipate no profit and provide for all possible losses' emanates from:

Answer & Solution

35. Which of the following errors will not affect the trial balance?

Answer & Solution

36. If a share of Rs. 100 issued at a discount of Rs. 5 of which full amount has been called up is forfeited for nonpayment of final call of Rs. 20, the share capital account will be debited by

Answer & Solution

37. That portion of the share capital which can be called up only on the winding-up of the company is the

Answer & Solution

38. Consider the following items: i. Debentures ii. Prepaid rent iii. Interest accrued iv. Bank overdraft Which of them are current liabilities:

Answer & Solution

39. During the Year 2004, the income from subscription was Rs. 4,500, subscription received in advance Rs. 360. On 31st December 2004, the outstanding subscription was Rs. 140. The amount of subscription to be shown in Receipts and Payments a/c for the year 2004 would be

Answer & Solution

40. When a company takes over another one and clearly becomes a new owner, the action is called

Answer & Solution

Read More Section(Accounting)

31.
Which one of the following concept is used as fund in the preparation of Funds Flow Statement?

32.
The effect of surrender of shares is the same as of shares:

33.
Calculate the interest on drawings assuming the rate @ 10% p.a for the year ended 31^st December 2016, for the withdrawals of Rs. 2000 made at the beginning of each month

34.
The principle 'anticipate no profit and provide for all possible losses' emanates from:

35.
Which of the following errors will not affect the trial balance?

36.
If a share of Rs. 100 issued at a discount of Rs. 5 of which full amount has been called up is forfeited for nonpayment of final call of Rs. 20, the share capital account will be debited by

37.
That portion of the share capital which can be called up only on the winding-up of the company is the

38.
Consider the following items:
i. Debentures
ii. Prepaid rent
iii. Interest accrued
iv. Bank overdraft
Which of them are current liabilities:

39.
During the Year 2004, the income from subscription was Rs. 4,500, subscription received in advance Rs. 360. On 31^st December 2004, the outstanding subscription was Rs. 140. The amount of subscription to be shown in Receipts and Payments a/c for the year 2004 would be

40.
When a company takes over another one and clearly becomes a new owner, the action is called