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.
The amount spent to increase the earning capacity of a business is:

A. Capital loss

B. Deferred revenue expenditure

C. Revenue expense

D. Capital expenditure

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42.
When any partner retires and the remaining partners carry on the business with the firm's property without any final settlements of accounts the outgoing partner is entitled to:

A. Interest @ 6% per annum of the amount due to him

B. Such share of the profits as may be proportionate to his share of the firm's property

C. Interest at mutually agreed rate

D. Interest at the rate charged by Banks on the amount due to him

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43.
Where is the depreciation account appearing in the trial balance is shown?

A. Profit and Loss A/c

B. Liabilities side

C. Deducted from the concerned assets

D. All of the above

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44.
Match the following:

List-I List-II

a. Partnership can be formed for the purpose of carrying . . . . . . . . 1. incoming partner

b. Guaranteed profit is generally given to . . . . . . . . 2. business

c. Every partner is a joint . . . . . . . . of the partnership property. 3. nominal

d. Partners, who do not contribute any capital and have no interest in the business are known as . . . . . . . . partners. 4. owner

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

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

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

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

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45.
Capital of Business is:

A. Cash

B. An asset

C. A Liability

D. None of the above

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46.
Match List-I and List-II and Select the correct answer:

List-I List-II

a. Loss in business 1. Profit & Loss Adjustment A/c

b. Partner loan 2. Joint Life Policy

c. Death of Partners 3. Debit balance of Profit and Loss A/c

d. Revaluation A/c 4. 6% Interest

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

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

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

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

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47.
Responsibility accounting seeks to establish a relationship between planning and controlling by:

A. establishing a system of collective responsibility

B. fixing organisational responsibilities for profit planning and controlling

C. devising standards of work performance

D. controlling cost and performance

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48.
A public company acquired the following assets and liabilities of a firm : Building Rs. 25,000, Machinery Rs. 15,000 Debtors Rs. 10,000, Stock Rs. 15,000 and Creditors Rs. 8,000. What will be the amount of goodwill or capital reserve if the purchase consideration of the business was Rs. 54,000.

A. Rs. 3,000 goodwill

B. Rs. 3,000 Capital reserve

C. Rs. 11,000 Goodwill

D. Rs. 11,000 Capital reserve

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49.
Under which type of agreement royalty is paid on the basis of sale?

A. Mining

B. Patent

C. Copy right

D. Licensing

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50.
What is the another name of managerial accounting?

A. Cost accounting

B. Traditional accounting

C. Decision accounting

D. None of these

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1 2 3 4 5 6 7 8 9 10

List-I	List-II
a. Partnership can be formed for the purpose of carrying . . . . . . . .	1. incoming partner
b. Guaranteed profit is generally given to . . . . . . . .	2. business
c. Every partner is a joint . . . . . . . . of the partnership property.	3. nominal
d. Partners, who do not contribute any capital and have no interest in the business are known as . . . . . . . . partners.	4. owner

List-I	List-II
a. Loss in business	1. Profit & Loss Adjustment A/c
b. Partner loan	2. Joint Life Policy
c. Death of Partners	3. Debit balance of Profit and Loss A/c
d. Revaluation A/c	4. 6% Interest

Accounting MCQ Questions and Solutions with Explanations | Commerce

41. The amount spent to increase the earning capacity of a business is:

Answer & Solution

42. When any partner retires and the remaining partners carry on the business with the firm's property without any final settlements of accounts the outgoing partner is entitled to:

Answer & Solution

43. Where is the depreciation account appearing in the trial balance is shown?

Answer & Solution

Answer & Solution

45. Capital of Business is:

Answer & Solution

46. Match List-I and List-II and Select the correct answer: List-I List-II a. Loss in business 1. Profit & Loss Adjustment A/c b. Partner loan 2. Joint Life Policy c. Death of Partners 3. Debit balance of Profit and Loss A/c d. Revaluation A/c 4. 6% Interest

Answer & Solution

47. Responsibility accounting seeks to establish a relationship between planning and controlling by:

Answer & Solution

48. A public company acquired the following assets and liabilities of a firm : Building Rs. 25,000, Machinery Rs. 15,000 Debtors Rs. 10,000, Stock Rs. 15,000 and Creditors Rs. 8,000. What will be the amount of goodwill or capital reserve if the purchase consideration of the business was Rs. 54,000.

Answer & Solution

49. Under which type of agreement royalty is paid on the basis of sale?

Answer & Solution

50. What is the another name of managerial accounting?

Answer & Solution

Read More Section(Accounting)

41.
The amount spent to increase the earning capacity of a business is:

42.
When any partner retires and the remaining partners carry on the business with the firm's property without any final settlements of accounts the outgoing partner is entitled to:

43.
Where is the depreciation account appearing in the trial balance is shown?

45.
Capital of Business is:

46.
Match List-I and List-II and Select the correct answer:

List-I List-II

a. Loss in business 1. Profit & Loss Adjustment A/c

b. Partner loan 2. Joint Life Policy

c. Death of Partners 3. Debit balance of Profit and Loss A/c

d. Revaluation A/c 4. 6% Interest

47.
Responsibility accounting seeks to establish a relationship between planning and controlling by:

48.
A public company acquired the following assets and liabilities of a firm : Building Rs. 25,000, Machinery Rs. 15,000 Debtors Rs. 10,000, Stock Rs. 15,000 and Creditors Rs. 8,000. What will be the amount of goodwill or capital reserve if the purchase consideration of the business was Rs. 54,000.

49.
Under which type of agreement royalty is paid on the basis of sale?

50.
What is the another name of managerial accounting?