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

51.
Creating provision for bad and Doubtful debts is based on which accounting concept?

A. Principal of disclosure

B. Concept of stability

C. Conservatism concept

D. Principle of consistency

Answer & Solution Discuss in Board Save for Later

52.
Who among the following can be appointed as a debenture trustee?

A. A scheduled bank carrying on commercial activity

B. Beneficiary holding shares in a company

C. Beneficiary entitled to receive the money which is to be paid by the company to the debenture trustee

D. Who is not subject to any gurantee in respect of principal loans reserved by way of debentures or interest thereon

Answer & Solution Discuss in Board Save for Later

53.
The most rigorous test of liquidity is:

A. Current Ratio

B. Acid Test Ratio

C. Absolute Ratio

D. Stock Turnover Ratio

Answer & Solution Discuss in Board Save for Later

54.
A machine was purchased for Rs. 10,000 and its life was estimated to be 3 years, and at the end of its life, its book value was Rs. 5,120. If depreciation is calculated according to Diminishing Balance method, the rate of depreciation would be:

A. 25%

B. 15%

C. 20%

D. 10%

Answer & Solution Discuss in Board Save for Later

55.
Bill discounted from bank is

A. Contingent liability

B. Current liability

C. Current assets

D. None of the above

Answer & Solution Discuss in Board Save for Later

56.
Profit on sale of sinking fund investment will be debited to

A. Profit and Loss A/c

B. Sinking Fund A/c

C. Sinking Fund Investment A/c

D. Revaluation A/c

Answer & Solution Discuss in Board Save for Later

57.
The current cost on producing 5 units is Rs. 100/-. If fixed cost is Rs. 40/- then what will be the total average cost of 5 units

A. Rs. 28

B. Rs. 60

C. Rs. 12

D. Rs. 140

Answer & Solution Discuss in Board Save for Later

58.
When funds from operations are Rs. 42,000 and amount of depreciation on plant and machinery is Rs. 5,000, the amount of net profit will be

A. Rs. 37,000

B. Rs. 42,000

C. Rs. 47,000

D. a sum which cannot be computed

Answer & Solution Discuss in Board Save for Later

59.

Opening Debtors Rs. 10,000

Sales Returns Rs. 7,000

Bad Debts Rs. 3,000

Cash Received from Debtors Rs. 40,000

Closing Debtor Rs. 13,000

Find out the amount of credit sales.

A. Rs. 63,000

B. Rs. 53,000

C. Rs. 46,000

D. None of the above

Answer & Solution Discuss in Board Save for Later

60.
Net working capital is equal to

A. Excess of total assets over total liabilities

B. Excess of current assets over current liabilities

C. Aggregate current assets of the firm

D. Excess of total assets over total current liabilities

Answer & Solution Discuss in Board Save for Later

1 2 3 4 5 6 7 8 9 10

Opening Debtors	Rs. 10,000
Sales Returns	Rs. 7,000
Bad Debts	Rs. 3,000
Cash Received from Debtors	Rs. 40,000
Closing Debtor	Rs. 13,000

Accounting MCQ Questions and Solutions with Explanations | Commerce

51. Creating provision for bad and Doubtful debts is based on which accounting concept?

Answer & Solution

52. Who among the following can be appointed as a debenture trustee?

Answer & Solution

53. The most rigorous test of liquidity is:

Answer & Solution

54. A machine was purchased for Rs. 10,000 and its life was estimated to be 3 years, and at the end of its life, its book value was Rs. 5,120. If depreciation is calculated according to Diminishing Balance method, the rate of depreciation would be:

Answer & Solution

55. Bill discounted from bank is

Answer & Solution

56. Profit on sale of sinking fund investment will be debited to

Answer & Solution

57. The current cost on producing 5 units is Rs. 100/-. If fixed cost is Rs. 40/- then what will be the total average cost of 5 units

Answer & Solution

58. When funds from operations are Rs. 42,000 and amount of depreciation on plant and machinery is Rs. 5,000, the amount of net profit will be

Answer & Solution

59. Opening Debtors Rs. 10,000 Sales Returns Rs. 7,000 Bad Debts Rs. 3,000 Cash Received from Debtors Rs. 40,000 Closing Debtor Rs. 13,000 Find out the amount of credit sales.

Answer & Solution

60. Net working capital is equal to

Answer & Solution

Read More Section(Accounting)

51.
Creating provision for bad and Doubtful debts is based on which accounting concept?

52.
Who among the following can be appointed as a debenture trustee?

53.
The most rigorous test of liquidity is:

54.
A machine was purchased for Rs. 10,000 and its life was estimated to be 3 years, and at the end of its life, its book value was Rs. 5,120. If depreciation is calculated according to Diminishing Balance method, the rate of depreciation would be:

55.
Bill discounted from bank is

56.
Profit on sale of sinking fund investment will be debited to

57.
The current cost on producing 5 units is Rs. 100/-. If fixed cost is Rs. 40/- then what will be the total average cost of 5 units

58.
When funds from operations are Rs. 42,000 and amount of depreciation on plant and machinery is Rs. 5,000, the amount of net profit will be

59.

Opening Debtors Rs. 10,000

Sales Returns Rs. 7,000

Bad Debts Rs. 3,000

Cash Received from Debtors Rs. 40,000

Closing Debtor Rs. 13,000

Find out the amount of credit sales.

60.
Net working capital is equal to