Accounting MCQs

Question 1

With the help of following information, find out the value of fixed assets- Share capital = Rs. 7,20,000 Working capital = Rs. 2,52,000 Current Ratio = 2.5 Proprietary Ratio = 0.7

Accepted Answer

Rs. 5,88,000

Answer

Rs. 5,04,000

Answer

Rs. 5,40,000

Answer

Rs. 3,60,000

Question 2

Assertion (A): Sinking fund is a charge against profit and loss account. Reason (R): Sinking fund is created for repayment of a long-term liability. Which of the following statements is correct?

Accepted Answer

(A) is incorrect, but (R) is correct

Answer

(A) is correct, but (R) is incorrect

Answer

Both (A) and (R) are correct

Answer

Both (A) and (R) are incorrect

Question 3

Interest on investments received Rs. 500 which includes Rs. 100 in respect of interest accrued in the preceding year. What amount will be posted in the Income and expenditure Account:

Accepted Answer

Rs. 400

Answer

Rs. 100

Answer

Rs. 500

Answer

Rs. 600

Question 4

From the following find out the correct equation: I. A represents opening stock II. B represents purchases III. C represents closing stock IV. D represents cost of goods sold

Accepted Answer

A - C = D - B

Answer

A + B = D - C

Answer

D - A = B + C

Answer

None of these

Question 5

In what order are the followingassetsshown in the balance sheet of a company? i. Trade receivables ii. Cash iii. Furniture and fittings iv. Investment in shares and debentures

Accepted Answer

iii, iv, i, ii

Answer

ii, i, iv, iii

Answer

i, ii, iii, iv

Answer

iv, iii, ii, i

Question 6

A machine was bought on 1 st January, 1994 for Rs. 10,000. Its working life was estimated to be four years. The method of depreciation used is the 'sum of the year digit'. The machine was discarded and sold on 30 th June, 1996 for Rs. 1,000. The profit/loss on sale of the discarded machine was:

Accepted Answer

Rs. 1,000 loss

Answer

Rs. 1,120 loss

Answer

Rs. 2,250 loss

Answer

Rs. 1,500 loss

Question 7

Match List-I (Items) with List-II (Headings) and select the correct answer using the options given below the lists: List-I (Items) List-II (Headings) a. Provision for income tax 1. Miscellaneous expenses not written off b. Share premium 2. Current liabilities c. Unclaimed dividend dividend 3. Reserves and surplus d. Discount issue of shares 4. Profit and loss account

Accepted Answer

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

Answer

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

Answer

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

Answer

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

Question 8

Consider the following parties and arrange them in the correct sequence in the event of dissolution of a firm
i. Secured creditors
ii. Unsecured creditors
iii. Partners who have granted loans
iv. Partners who have contributed over and above profit-sharing ratio

Accepted Answer

i, ii, iii, iv

Answer

ii, i, iii, iv

Answer

i, ii, iv, iii

Answer

ii, i, iv, iii

Question 9

Match the following. List-I List-II a. Expenses of scheme 1. Not transferable to capital reduction b. Statutory reserve 2. Indicate and reduced c. Balance sheet after reduction 3. Transfer difference to capital reserve d. Reduction in paid-up value of shares 4. Debit capital reduction account

Accepted Answer

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

Answer

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

Answer

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

Answer

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

List-I (Items)	List-II (Headings)
a. Provision for income tax	1. Miscellaneous expenses not written off
b. Share premium	2. Current liabilities
c. Unclaimed dividend dividend	3. Reserves and surplus
d. Discount issue of shares	4. Profit and loss account

List-I	List-II
a. Expenses of scheme	1. Not transferable to capital reduction
b. Statutory reserve	2. Indicate and reduced
c. Balance sheet after reduction	3. Transfer difference to capital reserve
d. Reduction in paid-up value of shares	4. Debit capital reduction account