Accounting MCQs

If Fixed cost = Rs. 2,50,000;
Variable cost = Rs. 10 per unit
Selling price = Rs. 15 per unit and
Production level = 75,000 units
Calculate profit earned by using marginal costing technique

A Company purchased 8% bonds at a cost of Rs. 12,00,000 (face value Rs. 10,00,000) on 1^st January 2003. Half yearly interest is payable on this investment on 30^th June and 31^st December each year. The company closes its accounts on 31^st March 2003. The amount of accured interest shown in profit and loss account for the year ended is:

In financial statements, adequate disclosure is ensured by companies as per the requirements of:
I. management policies
II. materiality concept
III. disclosure concept
IV. relevant provision of the Companies Act
V. internal control
Of these statements:

A particular firm provided the following data for an accounting year
Current ratio = 2.5 : 1
Liquid ratio = 1.5 : 1
Net working capital = Rs. 6,00,000
Current assets and current liabilities of the firm are, respectively:

Match the items in Column-I with the items in Column-2

Column-1	Column-2
a. Materiality concept	1. The same accounting method used by a firm from one period to another
b. Going Concern concept	2. An inappropriate assumption of a firm being bankrupt
c. Historical Cost concept	3. A normal basis used for accounting assets
d. Consistency concept	4. Relates to the importance of an item or event

Upon dissolution, which is the proper order for application of the firm's assets?
1. Payment of partner's loan.
2. In paying, the debts of the firm to third partiy.
3. Distribution of surplus to partners in profit sharing ratio.
4. Payment of partners capital.
Select the correct answer:

Stock as on 5^th January - Rs. 27,000; purchases between 31^st December and 5^th January - Rs. 700; cost of sales between 31^st December and 5^th January - Rs. 1,500 what was the stock on 31^st December?

Match List-I (Items of expenditure and receipt) with List-II (Nature of expenditure and receipt) and select the correct answer using the options given below the lists:

List-I	List-II
a. Compensation paid to retrenched workers of the factory for the loss of service	1. Capital expenditure
b. Legal expenses incurred in connection with the purchase of a plot of land	2. Capital receipt
c. Compensation received from the government for the compulsory removal of a business premises to another place	3. Revenue expenditure
d. Sale proceeds of merchandise (goods)	4. Revenue receipt

Debit: all Expenses and Losses
Credit: all Gains or Income
This formula is applicable for: