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 3223hard
Match the following
| List-I | List-II |
| a. IFRS-3 | 1. Operating segments |
| b. IFRS-8 | 2. Leases |
| c. IFRS-9 | 3. Business combinations |
| d. IFRS-16 | 4. Financial Instruments |
Question 3224hard
As per AS-2 valuation of inventories, inventories are assets
1. held for sale in the ordinary course of business.
2. held for sale in the special course of business.
3. in the process of production for such sale.
4. in the form of materials or supplies to be consumed in the production processor or in the rendering of services.
5. in the process of services for such sale.
Select the correct answer:
1. held for sale in the ordinary course of business.
2. held for sale in the special course of business.
3. in the process of production for such sale.
4. in the form of materials or supplies to be consumed in the production processor or in the rendering of services.
5. in the process of services for such sale.
Select the correct answer:
Question 3225hard
From the following data, calculate P/V ratio.
| Sales | Profit | |
| 2017 | Rs. 50,000 | Rs. 5,000 |
| 2018 | Rs. 75,000 | Rs. 10,000 |
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Question 3226hard
Match List-I with List-II and select your answer:
| List-I | List-II |
| a. Shareholders | 1. Creditors of the company |
| b. Debenture holders | 2. Paid at the end of a predetermined period |
| c. Redeemable Debenture | 3. Joint owners of the company |
| d. Bearer | 4. Transferred by Debenture mere delivery |
Question 3227hard
Assertion (A): Premium receivedon issue of shares is credited to share premium account but not to profit and loss account.
Reason (R): Since share premium is not a trading profit, it is not distributed to shareholders.
Reason (R): Since share premium is not a trading profit, it is not distributed to shareholders.
Question 3228medium
Given:
Contribution = Rs. 1,00,000
Fixed cost = Rs. 50,000
Interest = Rs. 10,000
Income Tax = Rs. 10,000
Combined leverage will be:
Contribution = Rs. 1,00,000
Fixed cost = Rs. 50,000
Interest = Rs. 10,000
Income Tax = Rs. 10,000
Combined leverage will be:
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Question 3229hard
Statement I If the going concern concept is no longer valid, then all prepaid assets would be completely written-off immediately.
Statement II Also land held as an investment would be valued at its realisable value.
Statement II Also land held as an investment would be valued at its realisable value.
Question 3230hard
Match List-I with List-II and select the correct answer using the options given below the list:
| List-I | List-II |
| a. Compensating errors | 1. Not recording a business transaction |
| b. Errors of omission | 2. Charging a Revenue item to capital |
| c. Errors of principle | 3. Writing a debit item on the credit side and a credit item on the debit side of equal amount |
| d. Errors of commission | 4. Posting a correct amount to a wrong account |
Question 3231hard
Assertion (A): Increasing the value of closing inventory increases profit.
Reason (R): Increasing the value of closing inventory reduces the cost of goods sold
In the context of the above two statements, which of the following is correct?
Reason (R): Increasing the value of closing inventory reduces the cost of goods sold
In the context of the above two statements, which of the following is correct?