Accounting mcq questions and answers for competitive exams

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Accounting mcq questions and answers for competitive exams UPSC SSC , SSC CGL, SSC CHSL, upsc Civils , Entrance exams Online test practice online free Quiz, mock practice online
1.
Profitability Index, when applied to divisible projects, impliedly assumes that

a
NPV is addictive in nature
b
NPV is linearly proportionate to part of the project taken up
c
Both (a) and (b)
d
Project cannot be taken in parts
Answer and Explanation
Answer : Option C
Explanation :

2.
Accounting ratios can be expressed in the following forms:

a
Times
b
Fraction
c
Percentage
d
All of the above
Answer and Explanation
Answer : Option D
Explanation :

3.
As per SEBI's guidelines underwriting is

a
Optional
b
Mandatory
c
Not necessary
d
Not mandatory
Answer and Explanation
Answer : Option B
Explanation :

4.
According to the decision in Garner vs. Murray, in the absence of any agreement to the contrary, the deficiency of the insolvent partner must be borne by other solvent partners in proportion to

a
Capital ratio
b
Profit and loss sharing ratio
c
Their initial capital invested in the firm
d
Capital which stood before dissolution of the firm
Answer and Explanation
Answer : Option D
Explanation :

5.
A company pays dividend at the

a
End of the financial year
b
End of the month
c
End of the week
d
All of the above
Answer and Explanation
Answer : Option A
Explanation :

6.
Which of the following statement are correct

a
Inventory includes raw materials, finished goods, and work in progress
b
Inventory is a part of the working capital
c
Both (a) and (b)
d
Inventory includes goods likely to be purchased
Answer and Explanation
Answer : Option C
Explanation :

7.
Which of the following reserves cannot be utilised for making the partly paid up shares fully paid up?

a
Plant Revaluation Reserve
b
Securities Premium Account
c
Capital Redemption Reserve Account
d
All of the above
Answer and Explanation
Answer : Option D
Explanation :

8.
Modigliani and Miller's dividend policy of a firm is

a
Relevant
b
Irrelevant
c
Unrealistic
d
None of these
Answer and Explanation
Answer : Option B
Explanation :

9.
EBIT /Total Assets Ratio is

a
Solvency Ratio
b
Liquidity Ratio
c
Turnover Ratio
d
Profitability Ratio
Answer and Explanation
Answer : Option D
Explanation :

10.
Dividend is allocated to the shareholders of

a
The Debtors
b
The Creditors
c
The Customer
d
The Company
Answer and Explanation
Answer : Option D
Explanation :

11.
The amount in unpaid dividend accounts of companies shall be transferred to the

a
Investor Protection Fund
b
Investor Education and Protection fund
c
Dividend Equalisation Reserve of the company
d
General Revenue Account of the Central Government
Answer and Explanation
Answer : Option B
Explanation :

12.
Which of the following are examples of flexible working practices?

a
Part-time work
b
Parental leave
c
Both (a) and (b)
d
Flexible hours arrangement
Answer and Explanation
Answer : Option C
Explanation :

13.
How the deferred revenue expenses are treated in the books of accounts?

a
Such expenses are taken to Profit and Loss Account in part every year and thus unwritten off portion may be allowed to stand in the balance sheet on the asset side.
b
Such expenses are charged fully to the Profit and Loss Account of the year in which these are incurred.
c
All of the above
d
None of these
Answer and Explanation
Answer : Option A
Explanation :

14.
Under the head 'current liabilities', the following items are disclosed in the Final Accounts of a company

a
Acceptance or Bills Payable
b
Sundry creditors
c
Outstanding expenses and Advance Incomes
d
All of the above
Answer and Explanation
Answer : Option D
Explanation :

15.
Which trade policy results in the government levying both a specific tariff and an ad-valorem tariff on imported goods

a
Nominal tariff
b
Effective tariff
c
Revenue tariff
d
Compound tariff
Answer and Explanation
Answer : Option D
Explanation :