Accounting MCQs
Practice free Accounting multiple-choice questions with instant answer feedback and step-by-step solutions. Click an option to check yourself, reveal the full explanation, and work through all 3354 questions — no login required.
Question 3016hard
Which of the following are prepared by the organisations keeping only incomplete accounting records?
I. Cash book
II. Customer's Accounts
III. Expenses Accounts
IV. Day Books
Choose the correct answer using the options given below:
I. Cash book
II. Customer's Accounts
III. Expenses Accounts
IV. Day Books
Choose the correct answer using the options given below:
Question 3017hard
As per section 205 (2A) a company is obliged to transfer at least what amount in reserve, if the rate of dividend is more than 20% of the paid up capital?
or
If the proposed dividend is 20% the percentage of profits to be transferred to reserve is:
or
If the proposed dividend is 20% the percentage of profits to be transferred to reserve is:
Question 3018medium
Assertion (A): Accounting information refers to only events concerned with a business firm.
Reason (R): Accounting information is presented in financial statements.
Reason (R): Accounting information is presented in financial statements.
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Question 3019hard
You are given the following items-
1. Bill received
2. Investment
3. Debtors
4. Interest earned but not received
Which of the following arrangement in order of liquidity is correct?
1. Bill received
2. Investment
3. Debtors
4. Interest earned but not received
Which of the following arrangement in order of liquidity is correct?
Question 3020medium
Given:
Total Assets: Rs. 8,00,000
Current Liabilities: Rs. 2,00,000
No. of shares: Rs. 40,000
Face value per share: Rs. 10
Value per share will be:
Total Assets: Rs. 8,00,000
Current Liabilities: Rs. 2,00,000
No. of shares: Rs. 40,000
Face value per share: Rs. 10
Value per share will be:
Question 3021hard
Stock Rs. 14,000; Debtors Rs. 20,000: Creditors Rs. 20,000; Credit balance of profit and loss account at the beginning of the year Rs. 18,000; administration and selling expenses Rs. 20,000; 10% dividend on equity capital Rs. 3,000.
The following ratios are also given:
Stock turnover: 5 times
Current ratio 2 : 1
Debtors collection period: 73 days
Outstanding expenses: 15% of creditors
Ratio of net profit after tax to net tangible assets is 1: 10
Rate of Income tax: 5%
Ratio of fixed assets to paid up capital is 9: 10.
The total assets of the firm are:
The following ratios are also given:
Stock turnover: 5 times
Current ratio 2 : 1
Debtors collection period: 73 days
Outstanding expenses: 15% of creditors
Ratio of net profit after tax to net tangible assets is 1: 10
Rate of Income tax: 5%
Ratio of fixed assets to paid up capital is 9: 10.
The total assets of the firm are:
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Question 3022hard
Which of the following are methods of calculating goodwill?
1. Average profit method
2. Super profit method
3. Log method
4. Sum of years digit method
5. Capitalisation of average profit method
6. Capitalisation of super profit method
7. FIFO method
Select the correct answer:
1. Average profit method
2. Super profit method
3. Log method
4. Sum of years digit method
5. Capitalisation of average profit method
6. Capitalisation of super profit method
7. FIFO method
Select the correct answer:
Question 3023hard
A machinery having a residual value of Rs. 5,000 was purchased on 1st January 1998 for Rs. 1,00,000 and was depreciated @ 9.5% on a straight line method. On 1st January 1998, it was estimated that its useful life has been reduced to eight years. Under the changed circum-stances, the annual depreciation charges for the year 1991 and onwards will be:
Question 3024hard
Assertion (A): Inspite of a higher operating ratio the profitability tends to be lower.
Reason (R): Operating ratio shows a relationship between net operating profit and net sales.
Now, select the correct answer:
Reason (R): Operating ratio shows a relationship between net operating profit and net sales.
Now, select the correct answer: