Accounting MCQ Questions and Solutions with Explanations

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81.
A partnership firm prepared realisation account at the time of

A. Admission of new partner

B. A partner taking leave from the firm

C. Dissolution of firm

D. At the end of financial year

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82.
Consider the following activities:
1. Summarising the performance of a business
2. Analysing of the business transactions
3. Interpreting the results
4. Recording the transactions

A. 1234

B. 4213

C. 4321

D. 3142

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83.
Comparison of the financial statements of the current year with the performance of previous years of the same firm', is known as:

A. Trend Analysis

B. Horizontal Analysis

C. Intra-firm comparison

D. All of the above

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84.
What will be the difference in the receipt of book debts?

A. Current ratio will increase

B. Current ratio will decrease

C. There will be no effect on the current ratio

D. None of the above

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85.
Depreciation is caused by

A. price fluctuations

B. accident

C. use of asset

D. none of the above

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86.
Which of the following statements is true relating to Income and Expenditure Account?

A. It begins with a debit balance

B. It is a nominal account

C. It is prepared to ascertain financial position of the concern

D. It is prepared by all profit making organisations

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87.
Which one of the following statements is not correct:

A. Net capital employed equals fixed assets

B. Low sales in relation to fixed assets mean underutilisation of fixed assets

C. Expenses ratios reflect the profit earning capacity of the concern

D. The analysis for short term solvency of a company attempts to focus attention on the cash generation power of the company

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88.
Balance of share forfeiture account is shown in the Balance Sheet under the heading

A. Current Liability & Provisions

B. Reserves and Surplus

C. Share Capital

D. Unsecured Loan

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89.
Premium paid on the Joint Life Policy of the partners is

A. Credited to the respective partner's capital account

B. Debited to the respective partner's capital account

C. Credited to profit and loss account

D. Debited to profit and loss account

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90.
If the value of net-assets employed be Rs. 25,00,000. Average profit for the preceeding three years be Rs. 3,00,000 and the normal rate of return be 10%, the value of Goodwill by capitalization method will be:

A. Rs. 15,00,000

B. Rs. 5,00,000

C. Rs. 22,00,000

D. Rs. 2,50,000

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Accounting MCQ Questions and Solutions with Explanations | Commerce

81. A partnership firm prepared realisation account at the time of

Answer & Solution

82. Consider the following activities: 1. Summarising the performance of a business 2. Analysing of the business transactions 3. Interpreting the results 4. Recording the transactions

Answer & Solution

83. Comparison of the financial statements of the current year with the performance of previous years of the same firm', is known as:

Answer & Solution

84. What will be the difference in the receipt of book debts?

Answer & Solution

85. Depreciation is caused by

Answer & Solution

86. Which of the following statements is true relating to Income and Expenditure Account?

Answer & Solution

87. Which one of the following statements is not correct:

Answer & Solution

88. Balance of share forfeiture account is shown in the Balance Sheet under the heading

Answer & Solution

89. Premium paid on the Joint Life Policy of the partners is

Answer & Solution

90. If the value of net-assets employed be Rs. 25,00,000. Average profit for the preceeding three years be Rs. 3,00,000 and the normal rate of return be 10%, the value of Goodwill by capitalization method will be:

Answer & Solution

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81.
A partnership firm prepared realisation account at the time of

82.
Consider the following activities:
1. Summarising the performance of a business
2. Analysing of the business transactions
3. Interpreting the results
4. Recording the transactions

83.
Comparison of the financial statements of the current year with the performance of previous years of the same firm', is known as:

84.
What will be the difference in the receipt of book debts?

85.
Depreciation is caused by

86.
Which of the following statements is true relating to Income and Expenditure Account?

87.
Which one of the following statements is not correct:

88.
Balance of share forfeiture account is shown in the Balance Sheet under the heading

89.
Premium paid on the Joint Life Policy of the partners is

90.
If the value of net-assets employed be Rs. 25,00,000. Average profit for the preceeding three years be Rs. 3,00,000 and the normal rate of return be 10%, the value of Goodwill by capitalization method will be: