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

61.
Underwriting commission is due on which basis?

A. On issue price of shares

B. On face value of shares

C. On market price of shares

D. On called up value of shares

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62.
The cost of taking 'license' to run cinema is

A. Revenue

B. Capital

C. Investment

D. None of the above

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63.
Which is the convention of accounting, where in there is no overvaluation of assets and incomes:

A. Uniformity

B. Materiality

C. Conservatism

D. Continuity

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64.
Ram and Shyarn are partners in a firm with a capital of Rs. 4,80,000 and Rs. 3,10,000 respectively. They admitted Ganesh as a partner with $${\frac{1}{4}^{{\text{th}}}}$$ share of profit, and Ganesh brings Rs. 3,00,000 as his capital. Ganesh's share of goodwill will be

A. Rs. 1,10,000

B. Rs. 27,500

C. Rs. 17,500

D. Rs. 70,000

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65.
Match List-I with List-II and choose answer

List-I List-II

a. Cash 1. Equity share capital

b. Profit 2. Permanent property

c. Discount on issue of shares 3. Virtual asset

d. Machinery and plant 4. Current asset

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

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

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

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

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66.
In case of a company "Buy Back" is related to:

A. Prospectus

B. Shares

C. Debentures

D. Cheques

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67.
Indicate which of the following is correct?

A. Net profit + Operating expenses + Cost of goods sold = Sales

B. Net loss + Operating expenses + Purchases = Sales

C. Gross profit + Net loss - Cost of goods sold = Net profit

D. Sales + Net loss - Gross profit = Cost of goods sold

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68.
On what value the depreciation is charged in the books of the buyer in case of hire purchase method?

A. Hire purchase price

B. Cash price

C. Hire purchase price or cash price whichever is more

D. Assumed price

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69.
Which one of the following statements is false:

A. Realisation A/c is credited when the assets are realised

B. Realisation A/c is directly credited when unrecorded asset is realised

C. When goodwill is given in the books of a firm, then on dissolution of the firm goodwill A/c is also transferred to realisation A/c

D. In case of gradual realisation of assets, the cash will be distributed amongst the partners in their profit-sharing ratio though their capitals are not in their profit-sharing ratio

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70.
While preparing Funds Flow Statement an increase in working capital is regarded as:

A. Application of funds

B. Source of funds

C. Neither application nor source of funds

D. Both application as well as source of funds

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1 2 3 4 5 6 7 8 9 10

List-I	List-II
a. Cash	1. Equity share capital
b. Profit	2. Permanent property
c. Discount on issue of shares	3. Virtual asset
d. Machinery and plant	4. Current asset

Accounting MCQ Questions and Solutions with Explanations | Commerce

61. Underwriting commission is due on which basis?

Answer & Solution

62. The cost of taking 'license' to run cinema is

Answer & Solution

63. Which is the convention of accounting, where in there is no overvaluation of assets and incomes:

Answer & Solution

64. Ram and Shyarn are partners in a firm with a capital of Rs. 4,80,000 and Rs. 3,10,000 respectively. They admitted Ganesh as a partner with $${\frac{1}{4}^{{\text{th}}}}$$ share of profit, and Ganesh brings Rs. 3,00,000 as his capital. Ganesh's share of goodwill will be

Answer & Solution

65. Match List-I with List-II and choose answer List-I List-II a. Cash 1. Equity share capital b. Profit 2. Permanent property c. Discount on issue of shares 3. Virtual asset d. Machinery and plant 4. Current asset

Answer & Solution

66. In case of a company "Buy Back" is related to:

Answer & Solution

67. Indicate which of the following is correct?

Answer & Solution

68. On what value the depreciation is charged in the books of the buyer in case of hire purchase method?

Answer & Solution

69. Which one of the following statements is false:

Answer & Solution

70. While preparing Funds Flow Statement an increase in working capital is regarded as:

Answer & Solution

Read More Section(Accounting)

61.
Underwriting commission is due on which basis?

62.
The cost of taking 'license' to run cinema is

63.
Which is the convention of accounting, where in there is no overvaluation of assets and incomes:

64.
Ram and Shyarn are partners in a firm with a capital of Rs. 4,80,000 and Rs. 3,10,000 respectively. They admitted Ganesh as a partner with $${\frac{1}{4}^{{\text{th}}}}$$ share of profit, and Ganesh brings Rs. 3,00,000 as his capital. Ganesh's share of goodwill will be

65.
Match List-I with List-II and choose answer

List-I List-II

a. Cash 1. Equity share capital

b. Profit 2. Permanent property

c. Discount on issue of shares 3. Virtual asset

d. Machinery and plant 4. Current asset

66.
In case of a company "Buy Back" is related to:

67.
Indicate which of the following is correct?

68.
On what value the depreciation is charged in the books of the buyer in case of hire purchase method?

69.
Which one of the following statements is false:

70.
While preparing Funds Flow Statement an increase in working capital is regarded as: