CBSE Class 12 Accountancy Exam on March 31: Important MCQs for Board Exam 2023

Important MCQs for CBSE Class 12 Accountancy: Get Important CBSE Class 12 Accountancy MCQs to practice for clear fundamental concepts and highest marks in the examination. 

CBSE Class 12 Accountancy MCQs: In this article, we have compiled together for you various important Multiple Choice Type Questions (MCQs) for the upcoming CBSE Class 12 Accountancy board examination 2023. You will find here various kinds of MCQs from all the chapters of the curriculum, based on the latest syllabus and sample paper by the board. By solving all the different types of such MCQs, your preparation for the exam will be polished enough to help you score maximum marks without sweat. 

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CBSE Class 12 Accountancy Important MCQs from All Chapters

1 As per the Companies Act 2013, the Central Government is empowered to prescribe the maximum number of partners in a firm, but the number of partners cannot be more than —

a.50

b.100

c.20

D.10

2 In the absence of Partnership deed, the profits of a firm are divided among the partners

1. In the ratio of capital
2. Equally
3. In the ratio of time devoted for the firm’s business
4. According to the managerial abilities of the partners

3 On 1st April 2018, a partner introduced additional capital of ₹ 50,000 to the firm but Partnership Deed is silent. The partner demands interest on capital @ 5% p.a. How much interest on capital will be payable to the partner:

a) ₹ 3,000 b) Interest on capital will not be allowed c) ₹ 2,500 d) ₹ 1,800

4 Steps involved in the distribution of profit under minimum guarantee to partner will be…………………..

i)Calculate the amount of deficiency

ii)Calculate distributable profit between/among the partners

iii)Distribute the amount of deficiency between/among the partners who have given the guarantee

iv)Calculate the actual share of profit of each partner

a) (ii) iv) i) iii)

b) (i) ii) iii) iv)

c) (iii) ii) iv) i)

d) (iv) iii) ii) i)

5 The average profit over the last five years was ₹. 60000. The normal yield on capital invested in such a business is estimated at 10% pa. Capital invested in the business is ₹. 500000. Amount of goodwill, it is based on 3 years purchase of last 5 years super profit will be

a) 1, 00,000 (b) 1, 80,000 (c) 30000 (d) 1, 50,000.

6 Assets are revalued and liabilities are reassessed at the time of change in profit sharing ratio so that

(a) assets and liabilities are shown at their present values

(b) no partner is put to an advantage or disadvantage

( c) sacrificing partner is partly compensated

(d) assets and liabilities are shown at their market value.

7 In case of change in profit-sharing ratio, the gaining partner must compensate the sacrificing partners by paying the proportional amount of

(a) capital

( b) cash

(c) goodwill

(d) none of the above

8 Sacrificing ratio is used to distribute ——————— in case of admission of a partner.

a) Goodwill

b) Revaluation Profit or Loss

c) Profit and Loss Account (Credit Balance)

d) Both b and c

9 As per———– , only purchased goodwill can be shown in the Balance Sheet.

a) AS 37

b) AS 26

c) Section 37

d) AS 37

10 A Partner took over the Investments of Rs 15000 at Rs 19000 on dissolution of a Firm. What amount will be credited in Realisation Account?

a) Rs 15000 b) Rs 19000 c)Rs 4000 d) Rs 23000

11 Name the head of Capital Clause of Memorandum of Association of a company in which maximum amount of share capital mentioned is called .

a) Reserve Capital (b) Subscribed Capital (c) Authorised Capital (d) Issued Capital

12 Once, forfeited shares reissued, balance of share forfeiture money will be transferred to:

a) General Reserve (b) Capital Reserve (c) Reserve Capital (d) Securities Premium Reserve

13 Debenture holders are

A) Debtors of the Company

B) Creditors of the Company

C) External users

D) Owners of the Company

14 Debentures issued as collateral security will be debited to:

a) Bank Account

b) Debentures Suspense Account

c) Debentures Account

d) Bank Loan Account

15 According to prescribed order of assets in a Company’s Balance Sheet ……………………… assets should be shown first of all.

(A) Non-Current Assets

(B) Current Assets

(C) Current Investments

(D) Loans and Advances

16 ‘Return on Investment’ (ROI) is calculated under:

(a) Liquidity Ratio

(b) Solvency Ratio

(c) Profitability Ratio

(d) Activity Ratio

17 Inventory Turnover Ratio is:

(a) Average Inventory/Revenue from Operations

(b) Average Inventory/Cost of Revenue from Operations

(c) Cost of Revenue from Operations/Average Inventory

(d) G.P/Average Inventory

18 Which of the following transactions would not create a cash flow?

(a) A company purchased some of its own stock from a stockholder

(b) Amortization of a patent

(c) Payment of a Cash Dividend

(d) Sale of equipment at book value

19 Issue of share for consideration other than cash will result into cash

(a)Inflow

(b) Outflow

(c) No flow

(d)None of these

20 Declaration of Final Dividend would result in ___

(a) Outflow in Financing activities.

(b) Outflow in Operating activities.

(c) Inflow in Operating activities.

(d) No Flow of cash.

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