Accounting MCQs

Question 1

If total sales are Rs. 1,00,000 cash sales included in total sales Rs. 20,000, sales back Rs. 7,000. Total debtors for sale as on 31 st March, 1993 Rs. 9,000, and bills receivable as on 31 st March, 1993 is only Rs. 2,000. The average payout period would be for the year 1992 - 93.

Accepted Answer

55 days

Answer

60 days

Answer

45 days

Answer

90 days

Question 2

Asha and Vipasha are equal partners with fixed capitals of Rs. 5,00,000 and Rs. 2,00,000, respectively. After closing the accounts for the year ending 31 st March 2019, it was discovered that the interest on capitals was provided @ 6% per annum instead of 5% per annum. In the adjusting entry

Accepted Answer

Asha will be debited with Rs. 1,500 and Vipasha will be credited with Rs. 1,500

Answer

Asha will be credited with Rs. 1,500 and Vipasha will be debited with Rs. 1,500

Answer

Asha will be debited with Rs. 5,000 and Vipasha will be debited with Rs. 2,000

Answer

Asha will be credited with Rs. 5,000 and Vipasha will be credited with Rs. 2,000

Question 3

Calculate the BEP in units from the following figures Sales price Rs. 15/unit Variable cost Rs. 8/unit Fixed cost Rs. 14,000 Unit produced 6,000

Accepted Answer

2000

Answer

1500

Answer

2500

Answer

3000

Question 4

X, Y and Z are partners sharing profit and loss equally. Their capital balances on 31 th March 2012 are Rs. 80,000, Rs. 60,000 and Rs. 40,000, respectively. Their personal assets are worth as follows: X - Rs. 20,000, Y - Rs. 15,000 and Z - Rs. 10,000. The extent of their liability in the firm would be

Accepted Answer

X - Rs. 20,000, Y - Rs. 15,000, Z - Rs. 10,000

Answer

X - Rs. 80,000, Y - Rs. 60,000, Z - Rs. 40,000

Answer

X - Rs. 1,00,000, Y - Rs. 75,000, Z - Rs. 50,000

Answer

Equal

Question 5

Which of the following is true?
i. Balance sheet is alway sprepared from the point of view of the business, but not from the point of view of the owners.
ii. The financial relationship of the business to its owners is shown in the balance sheet.
iii. Balance sheet is always related to a period of time.

Accepted Answer

i and ii

Answer

ii and iii

Answer

i and iii

Answer

i, ii and iii

Question 6

Arrange the following steps of 'adjustment of old partners' capital on the basis of incoming partner's capital in a correct order.
1. Ascertain the present capital of the old partners.
2. Calculation of total capital of firm on the basis of new partner's capital.
3. Finding the surplus/deficit capital.
4. Determining the new capital of each partner.
Select the correct answer:

Accepted Answer

2, 4, 1, 3

Answer

3, 2, 1, 4

Answer

4, 3, 2, 1

Answer

1, 4, 2, 3

Question 7

Given below are two statements, one labelled as Assertion (A) and the other as Reason (R)
Assertion (A): Gross profit ratio is calculated on the basis of net sales.
Reason (R): Gross profit ratio measure overall profitability of a concern.
Choose the correct answer:

Accepted Answer

(A) is true but (R) is false

Answer

Both (A) and (R) are true and (R) is correct explanation of (A)

Answer

Both (A) and (R) are true but (R) is not be correct explanation of (A)

Answer

(A) is false but (R) is true

Question 8

Pre-fix of "CS" of members of the institute has been granted by ICSI on:

Accepted Answer

23 rd - 24 th June, 2007

Answer

17 th - 19 th February, 2008

Answer

24 th - 27 th December, 2006

Answer

15 th - 18 th October, 2005

Question 9

Match List-I with List-II and select the correct answer: List-I List-II a. Cost of pulling down an old structure preparatory to construct a new one 1. Capital loss b. Purchase of a new spark plug for an old car 2. Revenue loss c. Expenditure incurred on Research and Development 3. Capital expenditure d. Theft by cashier during business hours 4. Revenue expenditure e. Motor car burnt during a riot 5. Deferred revenue expenditure

Accepted Answer

a-3, b-4, c-5, d-2, e-1

Answer

a-4, b-3, c-5, d-1, e-2

Answer

a-2, b-5, c-3, d-1, e-4

Answer

a-5, b-4, c-3, d-2, e-1

Sales price	Rs. 15/unit
Variable cost	Rs. 8/unit
Fixed cost	Rs. 14,000
Unit produced	6,000

List-I	List-II
a. Cost of pulling down an old structure preparatory to construct a new one	1. Capital loss
b. Purchase of a new spark plug for an old car	2. Revenue loss
c. Expenditure incurred on Research and Development	3. Capital expenditure
d. Theft by cashier during business hours	4. Revenue expenditure
e. Motor car burnt during a riot	5. Deferred revenue expenditure