Accounting MCQs

Match List-I with List-II and select the correct answer using the options given below the lists:

List-I	List-II
a. Heavy amount of premium on redemption of preference shares	1. Capital expenditure
b. Excess of sale proceeds fixed assets over their original cost	2. Deferred revenue expenditure
c. Cost of installation of an old machine	3. Capital gain
d. Freight paid on purchase of raw material	4. Revenue of expenditure

Opening stock	Rs. 2,000
Closing stock	Rs. 3,000
Purchases	Rs. 31,000
Debentures (representing 1/3 of owner's capital)	Rs. 5,000
Sales	Rs. 50,000

Capital turnover ratio will be:

Indicate the correct statement as regards the sources of funds for a Funds Flow Statement from the following:
i. Increase in working capital
ii. Decrease in working capital
iii. Writing off the intangible/fictitious assets
iv. Issuing equity shares for acquisition of a building for office
v. Charging depreciation on fixed assets

Given below are two statement, one labelled as Assertion (A) and the other as Reason (R)
Assertion (A): In accounting, a distinction is made between the business and the owner.
Reason (R): Accounting concepts are based on self-consciousness and not on subjectivity.
Select the correct answer

Which of the following is/are capitalised along with the purchase price a fixed asset?
I. Import duty
II. Delivery and handling cost
III. Cash discount
IV. Cost of installation
Select the correct answer using the options given below:

Arrange the following steps of adjustment of capital (reconstitution of firm) incorrect order.
1. Calculation of total capital of new firm.
2. Finding out the surplus/deficiency in each of partner's capital account.
3. Calculation of adjusted old capitals of partners.
4. Finding out the new capitals of partners.
Select the correct answer:

The question contains two statement. One is Assertion (A) and the other is Reason (R). You have to examine both the statements carefully and decide whether the Assertion (A) and Reason (R) are separately true? and If so, then Reason is the correct explanation of the Assertion. Mark these items in the balance sheet.
Assertion (A) Balance sheet does not reveal ownership of business.
Reason (R) Assets are just unrefined cost.

Match List-I with List-II and select the correct answer:

List-I	List-II
a. Measurement of income	1. Accrues to the equity of owners
b. Recognition of expense	2. Recognition of revenue
c. Basis of realization	3. Matching revenue with expenses
d. Identification of revenue	4. Accounting period

Consider the following statements:
Assertion (A): Every shareholder has a right to receive a share-certificate from the company whose shares he has purchased.
Reason (R): Share-certificate is a conclusive evidence of the title of the person to the shares which are written in his name in the certificate.
Now select your answer: