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.
A trader transfers 20% of his profit to General Reserve. On the basis of which concept, he does so?

A. Concept of conservatism

B. Concept of uniformity

C. Realization concept

D. Money-measurement concept

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42.
Which of the followingstatements istrue?

A. Capital expenditure does not affectthe profitability of a concern, but revenue expenditure does affect the profitability of a concern

B. Capital expenditure affects the profitability of a concern directly,but revenueexpenditure does not affectdirectly

C. Capital expenditure affects the profitability of a concern indirectly, but revenue expenditure affects directly

D. Both capital expenditure and revenue expenditure affectthe profitability of a concern directly

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43.
Adjustment entry for outstanding rent will be

A. Outstanding rent A/c Dr - To Rent A/c

B. Rent A/c Dr - To outstanding A/c

C. Profit and Loss A/c Dr - To rent A/c

D. Outstanding rent A/c Dr - To Profit and Loss A/c

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44.
Which of the following correctly depicts the difference between a merger and an acquisition of srock?

A. Acquisition of stock results in the total absorption of a firm, but a merger does not

B. In case of a merger, the firm can deal directly with the shareholders of the acquired firm, but not in the caseof acquisition of stock

C. Shareholders of the acquired or target firm vote by their response to a tender offer in the acquisition of stock, but cast a formal vote in a merger situation

D. A formal vote by the acquired firm's shareholders is required for the acquisition of stock but not for a merger

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45.
Debt-Equity Ratio is a kind of

A. Liquidity Ratio

B. Profitability Ratio

C. Capital Structure Ratio

D. Ratio of Efficiency

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46.
Who was insolvent in Garner vs. Murray case:

A. Murray

B. Wilkins

C. Garner

D. Garry

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47.
What is the correct sequence of the following actions required for the preparation of final accounts?
1. Preparation of Trial Balance
2. Balance of accounts
3. Preparation of annual financial statements
4. Making adjustment entries
Select the correct answer

A. 1, 2, 3, 4

B. 4, 3, 2, 1

C. 4, 2, 1, 3

D. 2, 1, 4, 3

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48.
The value of plant and machinery as on 1^st January, 2005 was Rs. 80,000/- and its value as on 31^th December 2005 was Rs. 1,20,000/-. During the year Rs. 10,000/ was written off as depreciation. This will result in

A. Sources of funds Rs. 30,000/-

B. Utilization of funds Rs. 50,000/-

C. Utilization of funds Rs. 40,000/-

D. Sources of funds Rs. 50,000/-

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49.
A company issued 1,00,000 equity shares of the face value of Rs. 100 each at Rs. 100 per share. So far Rs. 75 per share has been called up including Rs. 25 on allotment and Rs. 25 on first call. X to whom 200 shares were issued failed to pay the first call. His shares were forfeited and re-issued to Y at Rs. 70 per share as fully paid-up. The amount to be transferred to Capital Reserve a/c would be:

A. Rs. 4,000

B. Rs. 6,000

C. Rs. 8,000

D. Rs. 10,000

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50.
When subsidiary books are maintained, the entry for special discounts to customers is done in:

A. Journal

B. Sales book

C. Cash book

D. None of these

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Accounting MCQ Questions and Solutions with Explanations | Commerce

41. A trader transfers 20% of his profit to General Reserve. On the basis of which concept, he does so?

Answer & Solution

42. Which of the followingstatements istrue?

Answer & Solution

43. Adjustment entry for outstanding rent will be

Answer & Solution

44. Which of the following correctly depicts the difference between a merger and an acquisition of srock?

Answer & Solution

45. Debt-Equity Ratio is a kind of

Answer & Solution

46. Who was insolvent in Garner vs. Murray case:

Answer & Solution

47. What is the correct sequence of the following actions required for the preparation of final accounts? 1. Preparation of Trial Balance 2. Balance of accounts 3. Preparation of annual financial statements 4. Making adjustment entries Select the correct answer

Answer & Solution

48. The value of plant and machinery as on 1st January, 2005 was Rs. 80,000/- and its value as on 31th December 2005 was Rs. 1,20,000/-. During the year Rs. 10,000/ was written off as depreciation. This will result in

Answer & Solution

Answer & Solution

50. When subsidiary books are maintained, the entry for special discounts to customers is done in:

Answer & Solution

Read More Section(Accounting)

41.
A trader transfers 20% of his profit to General Reserve. On the basis of which concept, he does so?

42.
Which of the followingstatements istrue?

43.
Adjustment entry for outstanding rent will be

44.
Which of the following correctly depicts the difference between a merger and an acquisition of srock?

45.
Debt-Equity Ratio is a kind of

46.
Who was insolvent in Garner vs. Murray case:

47.
What is the correct sequence of the following actions required for the preparation of final accounts?
1. Preparation of Trial Balance
2. Balance of accounts
3. Preparation of annual financial statements
4. Making adjustment entries
Select the correct answer

48.
The value of plant and machinery as on 1^st January, 2005 was Rs. 80,000/- and its value as on 31^th December 2005 was Rs. 1,20,000/-. During the year Rs. 10,000/ was written off as depreciation. This will result in

50.
When subsidiary books are maintained, the entry for special discounts to customers is done in: