Accounting MCQs
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Question 3043hard
Read the following statements.
1. Financial statements are only interim reports.
2. Financial statements are prepared on the basis of realisable values.
3. The preparation of financial statements is not an ultimate aim.
4. Certain assumptions are necessary to prepare financial statements.
Which of the following combinations consists of all true statements?
1. Financial statements are only interim reports.
2. Financial statements are prepared on the basis of realisable values.
3. The preparation of financial statements is not an ultimate aim.
4. Certain assumptions are necessary to prepare financial statements.
Which of the following combinations consists of all true statements?
Question 3044hard
Consider the following statements:
I. Workmen's compensation and third party insurance are examples of guarantee insurance
II. Re-insurance is more common under fire and marine insurance
Which of the statements given above is/are correct?
I. Workmen's compensation and third party insurance are examples of guarantee insurance
II. Re-insurance is more common under fire and marine insurance
Which of the statements given above is/are correct?
Question 3045hard
On 31st March, 2019, total debtors are Rs. 25,000 and bad debts are Rs. 1,000 so if rate of discount on debtors is 2% and rate of provision for bad debts is 5% then the amount of discount on debtors will be
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Question 3046hard
Given below are two statements, are labelled as Assertion (A) and other as Reason (R):
Assertion (A): The fixed assets in the balance sheet are required to be shown at cost less depreciation.
Reason (R): The balance sheet and profit and loss account disclose a true and fair view.
Choose the correct answer
Assertion (A): The fixed assets in the balance sheet are required to be shown at cost less depreciation.
Reason (R): The balance sheet and profit and loss account disclose a true and fair view.
Choose the correct answer
Question 3047hard
If,
Capital at the end = Rs. 7,000
Capital introduced = Rs. 5,000
Drawings = Rs. 8,000
Loss = Rs. 10,000
Then capital in the beginning is equal to:
Capital at the end = Rs. 7,000
Capital introduced = Rs. 5,000
Drawings = Rs. 8,000
Loss = Rs. 10,000
Then capital in the beginning is equal to:
Question 3048hard
Read the following statements and give your answer according to the codes given below:
i. Credit on investment is calculated as a part of the final account preparation process
ii. Stock valuation is necessary to determine profit by creating a business account
iii. Working audit is a statutory requirement for auditing a company
iv. Garner vs. Murray case deals with the settlement of accounts in case of bankruptcy of a partner of a partnership firm
i. Credit on investment is calculated as a part of the final account preparation process
ii. Stock valuation is necessary to determine profit by creating a business account
iii. Working audit is a statutory requirement for auditing a company
iv. Garner vs. Murray case deals with the settlement of accounts in case of bankruptcy of a partner of a partnership firm
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Question 3049medium
The definition of accounting will bring out the following functions:
1. Classifying
2. Interpreting
3. Recording
4. Summarising
The correct sequence of these functions is
1. Classifying
2. Interpreting
3. Recording
4. Summarising
The correct sequence of these functions is
Question 3050medium
Find the cost of closing stock from the following
Current ratio = 2.5
Liquid ratio = 1.5
Working capital = 1,20,000
Fixed assets = 3,00,000
Current ratio = 2.5
Liquid ratio = 1.5
Working capital = 1,20,000
Fixed assets = 3,00,000
Question 3051hard
X, Y and Z are equal partners with fixed capitals of Rs. 5,00,000, Rs. 3,00,000 and Rs. 1,00,000, respectively. After closing the accounts for the year ending 31st March 2019, it was discovered that the interest on capitals was provided @ 6% per annum instead of 5% per annum. In the adjusting entry