accounting questions with answers
2,134 multiple-choice questions. Open any question for its answer and explanation.
- Match the items in Column-I with the items in Column-2 Column-1 Column-2 a. Materiality concept 1. The same accounting method used by a firm from one period to another b. Going Concern concept 2. An inappropriate assumption of a firm being bankrupt c. Historical Cost concept 3. A normal basis used for accounting assets d. Consistency concept 4. Relates to the importance of an item or event
- Rent earned by a trading company is
- A company can reissue its forfeited shares
- X company purchased a machine paying cash Rs. 50,000, sold inventory for cash Rs. 10,000 (at cost), and collected bills receivables of Rs. 5,000 during a month. The net effect on fund flow would be
- Revenue is generally recognised as being earned at the point of time, when
- The cost of a machine having a span of life 5 years is Rs. 10,000. It has a scrap value of Rs. 1,000. The amount of depreciation in the first year under the sum of year's digit method will be
- Depreciation on fixed assets is: OR Depreciation is
- . . . . . . . . rule is applicable at the time of any partner becoming insolvent.
- X and Y are partners in a firm. X is entitled to a salary of Rs. 2,000 per month together with a commission of 10% of net profit before chargin any commission. Y is entitled to a salary of Rs. 5000 per annum together with a commission of 10% of net profit after charging all commissions. Net profit before charging any commission for the year was Rs. 55,000. What will be the net profits to be distributed to X and Y respectively?
- The quick ratio is 1.5 : 1 and the quick assets is Rs. 30,000. The quick liability will be
- Current Cost Accounting method attempted to match the current incomeagainst which cost?
- The adjusted net profit of a business is Rs. 2,00,000 and the amount of capital employed is Rs. 12,50,000. If goodwill is to be calculated on basis of 3 year purchase of super profit and the normal rate of return is 10% then the value of goodwill will be
- Which type of share hold only one right and that of a fixed rate of dividend
- A and B were Sharing Profit of a business in the ratio of 3 : 2. They admit C into partnership, who gets $$\frac{1}{3}$$ of the share of profit from A, $$\frac{1}{2}$$ of the share of profit from B. What will be the new profit sharing ratio now: A. 3 : 2 : 5 B. 2 : 1 : 2 C. 3 : 2 : 1 D. 3 : 2 : 2
- The statutory meeting of a company is convened
- Wages paid for erection of new plant (machinery) should be debited to
- If the purchase consideration is calculated by adding the various payments to be made, the method is called
- The estimated life of a machine costing Rs. 9,00,000 is 9 years. The firm follows the 'Sum of Year Digit' Method of depreciation. The amount of depreciation provision on the machine in the sixth year of its life will be
- Consider the following statements- Statement (A): Ratio analysis is an important tool to gain knowledge about the financial soundness of a company. Reason (R): Ratio analysis is the only for an indicator to decide whether to invest or not in a company. Give the correct answer
- Which of the following is the use of funds
- Which of the following is a personal account
- Which of the following loan commitments are within the scope of IFRS-9?
- Which of the following receipts is of revenue nature?
- Profit prior to incorporation can be used
- Which of the following reports have to be submitted before the company's annual general meeting as per the Companies Act?
