Accountancy MCQs Marathon (2025 - 2012)
Welcome! Below you will find year-wise solved MCQs for Accountancy. Click on a year to view the solutions.
You can earn 8 Marks after doing all these questions. Best of Luck for Your Exam
1. (a) Fill in the blanks with appropriate
word/words: (any four) 1x4=4
(i) New
Ratio - Old Ratio = Gaining Ratio?
(ii)
Closing Stock is valued at cost or market price whichever is Lower.
(iii) Income statement is also known as Profit
and Loss Account.
(iv) Goodwill is the extra earning capacity of
a partnership firm.
(v) Balance
Sheet shows financial position of an
enterprise.
(b) State whether the following statements are
'True' or ‘False': 1x2=2
(i) Company
is an artificial person.
Ans: True
(ii)
Debt-Equity ratio is a kind of liquidity ratios.
Ans: No, it is a solvency ratio
(c) Choose the correct alternative: 1x2=2
(i) When a new partner is admitted, the increase in
the value of assets is debited to:
(a) Profit
and Loss Account
(b) Assets
Account
(c) Capital
account of old partners
(d) None of
the above
Ans: (b) Assets Account
(ii) As per Companies Act, 2013, the maximum rate
of interest on calls-in-arrears is:
(a) 11%
(b) 10%
(c) 6%
(d) 12%
Ans: (b) 10%
1. (a) Fill in the blanks with
appropriate word/words: (any four) 1 x 4 = 4
(i)
Partners current accounts are prepared when the capital accounts are _______.
Ans:
Fixed
(ii)
Company has a separate _______ entity apart from its members.
Ans:
Legal
(iii)
Current ratio is the relationship between current assets and _______.
Ans:
Current Liabilities
(iv)
Equity shareholders are _______ of a company.
Ans:
Owners
(v)
At the time of dissolution of partnership firm, assets are transferred to
Realisation Account at _______ value.
Ans:
Book
(b) State whether the following
statements are ‘True’ or ‘False’: 1 x 2
= 2
(i)
Debenture holders do not have right to vote in the meetings of the company.
Ans:
True
(ii)
Premium for goodwill is shared in gaining ratio.
Ans:
False, Sacrifice Ratio
(c) Choose the correct alternative: 1
x 2 = 2
(1)
The portion of the authorised capital which is offered to the public for sale
in the form of shares is called
(i)
subscribed capital.
(ii)
issued capital.
(iii)
called-up capital.
(iv) paid-up capital.
Ans:
(ii) issued capital.
(2)
In the absence of partnership deed, the rate of interest allowed on partner’s
capital is
(i)
6%.
(ii)
5%.
(iii)
6.5%.
(iv)
None of the above.
Ans: (iv) None of the above.
1. (a) Fill
in the blanks with appropriate word / words: (any four) 1x4=4
(1) Equity
shareholders are _______ of the company.
Ans: Owners
(2)
Receipts and Payments account is a summary of _______ transactions.
Ans:
Cash
(3) Maximum
number of members in a partnership business is _______.
Ans: 100
(4) In the
absence of any agreement, at the time of retirement of partner goodwill is to
be adjusted in _______ ratio.
Ans: GainingRatio
(5) Profit
and Loss A/c is also known as _______ statement.
Ans:
Income statement
(b) State
whether the following statements are True or False: 1x2=2
(1) A
company has a separate legal entity different from its members.
Ans:
True
(2) Quick
Assets = Current Assets = Inventory = Prepaid Expenses.
Ans:
False, Quick Assets = Current Assets - Inventory - Prepaid Expenses.
(c) Choose
the correct alternative: 1x2=2
(1) The
portion of the capital which can be called up only on the winding up of the
company is called:
(a)
Authorised capital.
(b) Uncalled
capital.
(c) Reserve
capital.
(d) Issued
capital.
Ans:
(c) Reserve capital.
(2)
Donation received for a specific purpose is a:
(a)
Capital Receipt.
(b)
Revenue Receipt.
(c)
Asset.
(d)
Liability.
Ans:
(a) Capital Receipt.
1. (a) Fill
in the blanks with appropriate word/words: (any four)
a) Income and Expenditure account is prepared
on _______ basis. 1
Ans: Accrual Basis
b) Liability of a partner is _______. 1
Ans:
Unlimited
c) Annual Report is issued by a company to its
_______. 1
Ans:
Shareholders
d) Liquid ratio is the relationship between
_______ and current liabilities. 1
Ans:
Liquid assets
e) Equity shareholders are _______ of a
company. 1
Ans:
Owners
(b) Choose
the correct alternative:
a) When a
new partner is admitted – 1
1. Consent
of all the partners is required.
2. Consent
of majority of the partners is required.
3. Consent
of any one partner is required.
Ans: 1.
Consent of all the partners is required.
b) Balance
of shares forfeited account after re-issue is transferred to – 1
1) Reserve
Fund.
b) Profit
and Loss Account.
c) Capital
Reserve.
Ans: c)
Capital Reserve.
(c) State
whether the following statements are “True” or “False”: (any two)
1. Outstanding subscription is an asset. 1
Ans: True
2. A Preference Shareholders gets interest at
a fixed rate. 1
Ans:
False, dividend
3. Company’s shares are generally
transferable. 1
Ans:
True
4. Life membership fee is a capital receipt. 1
Ans:
True
No Examination in the Year 2021
1.
(a) Fill in the blanks with appropriate word / words: 1x4=4
1) Unrecorded liabilities when paid are debited
to Realisation Account.
2) Life membership Fee is a Capital receipt.
3) A partner acts as an agent
of the firm.
4) A company is required to publish its financial statements every year.
(b)
Choose the correct alternative: 1x2=2
1)
When a new partner does not bring in
his share of goodwill in cash, the amount of premium is debited to:
a)
Premium Account.
b)
Cash Account.
c)
Capital
Account of new partner.
d)
Capital Account of old partner.
2)
Financial statements are:
a)
Summarised
reports of recorded facts.
b)
Detailed reports of recorded facts.
c)
Summarised reports of only cash transactions.
d)
None of the above.
3)
State
whether the following statements are “True” or “False”: 1x2=2
a) Subscription received in advance is an asset. False,
Liability
b) Interest
on debenture is payable only when a company earns profits. False, It is a charge
The figures in the margin indicate full marks for the questions
1. (a) Fill in the blanks with
appropriate word / words: 1x4=4
1) The
liability of every shareholder of a company is LIMITED. 1
2) Outstanding
Subscription is shown on the assets side of the Balance Sheet. 1
3) If
a partner takes over a liability of the firm, that partner’s capital account is
credit. 1
4) Current
ratio is the relationship between current assets and current liabilities. 1
(b) Choose the correct
alternative: 1x2=2
1) Annual
Report is issued by a company to its:
a) Directors.
b) Auditors.
c) Shareholders.
d) Management.
2) Financial
statement of a company include:
a) Only
Cash Flow Statement.
b) Only
Profit and Loss Account.
c) Only
Balance Sheet.
d) All of the above.
(c) State whether the following
statements are ‘True’ or ‘False’:
1)
The deceased partner is entitled to a share of
profit for the period upto his death. Ans: True
Profit or Loss on revaluation of assets and liabilities is distributed among old partners in sacrificing ratio. Ans: False, It is divided between old partners in old ratio.
The
figures in the margin indicate full marks for the questions.
1. (a) Fill in the blanks with
appropriate word/words: 1x4=4
1) The
interest due to the retiring partner is transferred to his Loan account in case
it is not paid immediately.
2) A
partner acts as Agent
of the firm.
3) In
case of fixed capital, a partner’s capital account always shows a credit balance.
4) Unrecorded
assets when realised are credited to realisation Account.
(b) Choose the correct
alternative: 1x2=2
i.Balance Sheet shows:
1)
Financial
position of a company.
2) Profit
and Loss of a company.
3) Cash
flow of a company.
4) All
of the above.
ii.Financial statements are:
1) Detailed
reports of the recorded facts.
2) Detailed
reports of the cash transactions only.
3) Summarised reports of recorded facts.
4) Summarised
reports of the financial institutions only.
(c) State whether the following statements
are true or false: 1x2=2
1)
Interest on Partner’s Capital is credited to
Partner’s Drawings Account. False,
Capital account
Life membership fee is a Revenue receipt. False, Capital receipts
The figures in the
margin indicate full marks for the questions
1.
(a) Fill in the blanks with appropriate word/words: 1x4=4
i)
An unrecorded asset realised at the time of realisation is credited to Realisation A/c.
ii)
When partner’s capital account is fixed then partner’s current account is
prepared.
iii)
Partner’s loan is paid before payment of partner’s capital.
iv)
If a partner takes over a liability of the firm, the partner’s capital account
is Credited.
(b) Choose the correct alternative: 1x2=2
i.Financial Statements are
1)
Summarized
reports of recorded facts.
2)
Detailed reports of the recorded facts.
3)
Summarized reports of only cash transactions.
4)
None of the above.
ii.Financial Statements of a company
include:
1)
Only Balance Sheet.
2)
Only Profit and Loss Account.
3)
Only Cash Flow Statement.
4)
All of
the above.
(c) State whether the
following statements are true or false: 1x2=2
1)
Financial analysis is used only by the creditors. Ans. False
2)
The deceased partner’s executor is entitled to a share of profit for the period
upto his/her death. Ans. True
The
figures in the margin indicate full marks for the questions.
1. (a) Fill in the blanks with appropriate word: 1x4=4
a)
In the absence of Partnership Deed, a Partner
who advances money to the firm beyond the amount of his / her capital is
entitled to get interest thereon at the rate of 6 % per annum as per Partnership Act, 1932.
b) The
members of a Partnership business are collectively known as firm.
c)
The amount due to the retiring partner is
transferred to his / her loan
Account in case it is not paid immediately.
d) In
case of fixed capital, a partner’s Capital Account always shows a credit balance.
(b) Choose the correct alternative: 1x2=2
i.Financial Statements of a company
include:
1)
Balance Sheet.
2)
Profit and Loss Account.
3)
Cash flow Statement.
4) All of the above.
ii.Profit and Loss Account is also known
as Income statement.
(c) State whether the following statements are true or false: 1x2=2
a)
Interest on Partner’s capital is debited to
Partner’s Capital Account. Ans. False
b) Debenture
holders are creditors of the company. Ans. True
The figures in the
margin indicate full marks for the questions.
1. (a) Fill in the
blanks with appropriate word: 1x4=4
(i) If
a partner takes over a liability of the firm, the partner’s capital account is credited.
(ii) A partner acts as an agent for the firm.
(iii) When Partner’s Capital Accounts are fixed,
then their current
accounts.
(iv) Goodwill
is the extra earning capacity of a firm.
(b) Choose the correct
alternative: 1x2=2
(i) In the event of
death of a partner, the amount of general reserve is transferred to the
Partner’s Capital Accounts in:
1)
New Profit sharing ratio.
2)
Old
Profit sharing ratio.
3)
Capital ratio.
4)
None of the above.
(ii) Balance Sheet
shows:
1)
Financial
Position of a Company.
2)
Profit or Loss of a Company.
3)
Cash flow of a Company.
4)
None of the above.
(iii) State whether the
following statements are true or false: 1x2=2
(i)The decreased partner’s executor is
entitled to a share of Profit for the period upto his / her death. Ans. True.
(ii) A Preference shareholder gets
interest at a fixed rate. Ans. False.
1. (a) Fill in the
blanks with appropriate word:
(i) Life membership fee is a capital receipt.
(ii) Interest on Partner’s loan is to
be credited to his partner’s
loan Account.
(iii) If there is any profit on
revaluation of assets and liabilities, the same will be shared by old partners in their
old ratio.
(iv) The
amount due to the retiring partner is transferred to his loan account in case
it is not paid immediately.
(b) Choose the correct
alternative:
(i) If the business is
sold as a going concern, cash balance is also transferred to ___________
Account.
(1) Revaluation
(2)
Realisation
(ii) Rate of Interest on
calls in arrears charged according to Table ‘A’ is _____________.
(1) 5%
(2) 6%
(3) 7%
(4) 8%
Ans.
Rates of Interest on calls in arrear and calls in advance as per table ‘A’ are 10%
and 12% respectively.
(ii) State whether the
following statements are true or false:
(i)
Debenture holders are the owners of the company. Ans. False
(ii) Company’s shares are generally transferable. Ans. True.
1. (a) Fill in the blanks with appropriate word: 1x4 = 4
(i)
A Receipts and Payments account is prepared on Cash basis of accounting.
(ii)
When Partner’s Capital Account is fixed, then Partner’s current Account is
prepared.
(iii)
Goodwill is
the extra earning capacity of a business.
(iv)
Unrecorded assets when realised are credited to realisation Account.
(b) Choose the correct alternative: 1x2=2
(i) An Income and Expenditure Account reveals:
(1)
Cash Position
(2) Surplus or Deficit
(3)
Capital Fund
(4)
None of the above
(ii) The portion of capital which can be called up only on the
winding up of the company is called:
(1)
Authorised Capital
(2)
Issued capital
(3)
Uncalled capital
(4)
Reserve
capital
(ii) State whether the following statements are true or false: 1x2=2
(i)
Discount on reissue of forfeited shares cannot exceed the amount received on
forfeited shares. True
(ii)
Interest on Debenture is payable only when a company earns profits. False
Q.1: (A) Fill in the blanks with
appropriate word: 1x4=4
(i) Income and Expenditure Account records
transactions of Revenue
nature.
(ii) On admission, unrecorded assets brought
into account are credited to revaluation account.
(iii) A company can issue shares at a discount
only if at least one
year has elapsed since the company became entitled to commence the business.
(iv) If a partner takes over an asset, such
partner’s capital accounts is debited.
(B) Choose the correct
alternative: 1x2=2
(i) Subscription received in advance is
treated as:
(a) An income
(b) An asset
(c) A
liability
(d) Capital
(ii) Profit on revaluation of assets and
liabilities is shared by the old partners in:
(a) Sacrificing ratio
(b) New ratio
(c) Old
ratio
(d) Gaining ratio
(C) State whether the following
statements are true or false.
1x2=2
(i) Dissolution of firm and dissolution of
partnership are two distinct legal concepts. True
(ii) Discount on reissue of forfeited shares
cannot exceed the amount received on forfeited shares. True
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