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

11.
At the time of retirement of a partner, the existing profit and loss balance is transferred to which account?

A. Realisation

B. Revaluation

C. Goodwill

D. Existing partners capital

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12.
According to which of the following accounting concepts, the owner of the business is also considered a creditor to the extent of the capital?

A. Money measurement concept

B. Cost concept

C. Dual aspect concept

D. Business entity concept

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13.
Which of the following will result in flow of funds:

A. Appreciation in value of buildings

B. Depreciation of assets

C. Purchase of furniture

D. Writing off goodwill

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14.
Which is the best depreciation method in case of mineral deposit?

A. Depletion method

B. Revaluation method

C. Annuity method

D. None of the above

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15.
There is decrease in the ownership of the owners by-

A. Issue of bonus share

B. Redemption of debentures

C. Redemption of preference share

D. Purchase of building

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16.
Which of them are current liabilities?
1. Debentures
2. Prepaid rent
3. Interest accrued
4. Bank overdraft
Select the correct answer:

A. 1, 2, 3 and 4

B. Only 4

C. 2, 3 and 4

D. 1, 2 and 3

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17.
Responsibility accounting aims to

A. ensure that a manager is punished if things go wrong

B. ensure that costs become the responsibility of a specific manager

C. allocate costs to all areas of a business

D. reduce the costs that a department incurs

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18.
A firm stands dissolve in the following cases
1. the partners agree that the firm should be dissolved.
2. the business becomes legal.
3. in case of partnership at will, a partner gives notice of dissolution.
4. the court orders dissolution.
Select the correct answer:

A. 1, 2 and 4

B. Only 3

C. Both 2 and 3

D. Only 2

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19.
Kinds of share capital is:

A. Bond

B. Mutual fund

C. Equity share capital

D. All of these

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20.
Which of the following item will have credit balance?

A. Deferred revenue income

B. Income earned but not received

C. Declared but unpaid dividend

D. Deduction on issue of debentures

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Accounting MCQ Questions and Solutions with Explanations | Commerce

11. At the time of retirement of a partner, the existing profit and loss balance is transferred to which account?

Answer & Solution

12. According to which of the following accounting concepts, the owner of the business is also considered a creditor to the extent of the capital?

Answer & Solution

13. Which of the following will result in flow of funds:

Answer & Solution

14. Which is the best depreciation method in case of mineral deposit?

Answer & Solution

15. There is decrease in the ownership of the owners by-

Answer & Solution

16. Which of them are current liabilities? 1. Debentures 2. Prepaid rent 3. Interest accrued 4. Bank overdraft Select the correct answer:

Answer & Solution

17. Responsibility accounting aims to

Answer & Solution

18. A firm stands dissolve in the following cases 1. the partners agree that the firm should be dissolved. 2. the business becomes legal. 3. in case of partnership at will, a partner gives notice of dissolution. 4. the court orders dissolution. Select the correct answer:

Answer & Solution

19. Kinds of share capital is:

Answer & Solution

20. Which of the following item will have credit balance?

Answer & Solution

Read More Section(Accounting)

11.
At the time of retirement of a partner, the existing profit and loss balance is transferred to which account?

12.
According to which of the following accounting concepts, the owner of the business is also considered a creditor to the extent of the capital?

13.
Which of the following will result in flow of funds:

14.
Which is the best depreciation method in case of mineral deposit?

15.
There is decrease in the ownership of the owners by-

16.
Which of them are current liabilities?
1. Debentures
2. Prepaid rent
3. Interest accrued
4. Bank overdraft
Select the correct answer:

17.
Responsibility accounting aims to

18.
A firm stands dissolve in the following cases
1. the partners agree that the firm should be dissolved.
2. the business becomes legal.
3. in case of partnership at will, a partner gives notice of dissolution.
4. the court orders dissolution.
Select the correct answer:

19.
Kinds of share capital is:

20.
Which of the following item will have credit balance?