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 3268hard
A machine is purchased on 1st January, 2001 for Rs. 1,00,000. Depreciation is to be charged at the rate of 10% P.A. by diminishing balance method. What will be the amount of depreciation shown is the profit and loss account for the year ending 31st December, 2004?
Question 3269hard
Match List-I with List-II and select the correct answer:
| List-I | List-II |
| a. Financial Leverage | 1. Efficiency |
| b. Quick Ratio | 2. Profitability |
| c. Stock Turnover | 3. Risk |
| d. Margin on sales | 4. Liquidity |
Question 3270medium
Consider the following items:
i. Debentures
ii. Prepaid rent
iii. Interest accrued
iv. Bank overdraft
Which of them are current liabilities:
i. Debentures
ii. Prepaid rent
iii. Interest accrued
iv. Bank overdraft
Which of them are current liabilities:
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Question 3271hard
X and Y are partners in the ratio of 3 : 2. Their capitals are Rs. 2,00,000 and Rs. 1,00,000 respectively. The interest on capitals is allowed @ 8% per annum. The firm earned a profit of Rs. 60,000 for the year ending on 31st March 2019. The interest on capital will be
Question 3272hard
Given below are two statements, one labelled as Assertion (A) and the other as Reason (R):
Assertion (A): Capital expenditure is incurred for the purpose of acquiring fixed assets.
Reason (R): Capital expenditure item is shown in the asset side of the Balance sheet.
Select the correct answer:
Assertion (A): Capital expenditure is incurred for the purpose of acquiring fixed assets.
Reason (R): Capital expenditure item is shown in the asset side of the Balance sheet.
Select the correct answer:
Question 3273hard
Match the following:
| List-I | List-II |
| a. Compulsory Dissolution | 1. Section 44 |
| b. Dissolution by Court | 2. Section 41 |
| c. Dissolution by Notice | 3. Section 42 |
| d. Contingent Dissolution | 4. Section 43 |
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Question 3274hard
Given-
Stock - Rs. 14,000;
Debtors - Rs. 20,000;
Creditors - Rs. 30,000;
Stock - turnover 5 times;
Credit collection period - 73 days;
Administrative expenses - 20% of sales;
All sales are made on credit. The net profit will be-
Stock - Rs. 14,000;
Debtors - Rs. 20,000;
Creditors - Rs. 30,000;
Stock - turnover 5 times;
Credit collection period - 73 days;
Administrative expenses - 20% of sales;
All sales are made on credit. The net profit will be-
Question 3275hard
A and B are partners sharing profits in the ratio of 2 : 1 They admit C who agrees that his share of goodwill Rs. 15,000 be debited to his capital he is required to bring in. The future profit sharing ratio of A, B and C will be 2 : 3 : 3 respectively.
A's Capital account in lieu of goodwill will be credited by:
A's Capital account in lieu of goodwill will be credited by:
Question 3276hard
The single entry system is defective because-
I. only one account is maintained
II. the trial balance cannot be prepared
III. the net profit cannot be accurately calculated
IV. the possibility of fraud and misappropriation is great
Select the correct answer from the following:
I. only one account is maintained
II. the trial balance cannot be prepared
III. the net profit cannot be accurately calculated
IV. the possibility of fraud and misappropriation is great
Select the correct answer from the following: