Accounting MCQs

Question 1

Statement I If an entity holds directly/indirectly 50% or more of the voting power of the investee, it is presumed thus such entity has significant influence. Statement II AS-24 deals with related party disclosures. Which of the following is/are correct?

Accepted Answer

Only statement II is true

Answer

Only statement I is true

Answer

Both statements are true

Answer

Both statements are false

Question 2

What is the correct sequence of the preparation of the following accounts and statement of a non-profit organisation?
I. Income and expenditure account
II. Receipts and payment account
III. Balance sheet
Select the correct answer from the options given below:

Accepted Answer

II, I, III

Answer

I, II, III

Answer

I, III, II

Answer

II, III, I

Question 3

Assertion (A): Cash flow Statement and Fund Flow Statement disclose same information. Reason (R): Both are prepared out of the same date You are to examine these two statements carefully and select the answers:

Accepted Answer

(A) is false but (R) is true

Answer

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

Answer

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

Answer

(A) is true but (R) is false

Question 4

A is regularly drawing Rs. 500 on 16 th of every month. if he is to pay interest on Rs. 6000 at a given rate, then the interest for the total period will be

Accepted Answer

6 months

Answer

5 months

Answer

7 months

Answer

$$5\frac{1}{2}$$ months

Question 5

What is the correct sequence of the following in the preparation of periodical financial statements?
I. preparation of Balance sheet
II. preparation of Funds flow statement
III. preparation of Trial balance
IV. preparation of Profit/Loss statement
Select the correct answer from the options given below and mark your answer sheet accordingly

Accepted Answer

III, IV, I, II

Answer

IV, II, I, III

Answer

II, IV, III, I

Answer

I, III, II, IV

Question 6

Given: Sales = Rs. 1,00,000 Variable cost = Rs. 50,000 Interest = Rs. 5,000 Fixed cost = Rs. 25,000 Operating leverage will be

Accepted Answer

2

Answer

4

Answer

6

Answer

1.8

Question 7

X and Y are partners in a firm. They withdrew @ Rs. 1,500 and Rs. 1,000 respectively on 15 th day of every month for all the twelve months during 2009. Interest on drawings is chargable @ 10% per annum. What would be the interest on drawings respectively?

Accepted Answer

Rs. 900 and Rs. 600

Answer

Rs. 1,800 and Rs. 1,200

Answer

Rs. 18,000 and Rs. 12,000

Answer

Rs. 150 and Rs. 100

Question 8

On 1 st January, 2004, 'A' took a mine on lease for 10 years. The rate of profession fee is 50 paise per tonne and the minimum fare is Rs. 8,000 per annum. Short working amount has the right to be recovered till 31 st December, 2008. Production was as follows- 2004 ⇔ 3,000 ton, 2005 ⇔ 10,000 ton, 2006 ⇔ 20,000 ton, 2007 ⇔ 28,000 ton, 2008 ⇔ 14,200 ton. The amount to be given to the landlord for the year 2006 is

Accepted Answer

Rs. 8,000

Answer

Rs. 9,000

Answer

Rs. 10,000

Answer

Rs. 12,000

Question 9

Assertion (A): The maximum number of partners has been specified in the Companies Act. 1956. Reason (R): The Partnership Act, 1932 has been merged with the Companies Act, 1956. Select the correct answer:

Accepted Answer

(A) is true but (R) is false

Answer

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

Answer

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

Answer

(A) is false but (R) is true