Corporate Accounting MCQ
Given below are Corporate Accounting MCQ with answers. These multiple choice questions are useful for BBA, B Com, MBA, MMS, M Com, BA, MA, and PGDM students. These corporate accounting mcq questions can also be used for UGC NET, SET, Ph D, UPSC, and MPSC competitive entrance exams.
Corporate Accounting MCQ
81) Which of the following cannot be treated as revenue expenditure?
A. Cost of goods purchased for resale.
B. Wages paid for the erection of plant and machinery.
C. Obsolescence cost.
D. Expenses incurred by way of repairs of existing assets which do not in any way add to their earning capacity.
Option: B
82) Which of the following has the highest cost of capital?
A. Loans
B. Equity shares
C. Bonds
D. Preference shares
Option: B
83) Risk in capital budgeting implies that the decision maker knows _ of the cash flows.
A. Variability
B. Certainty
C. Probability
D. None of these
Option: C
84) Cost of capital is helpful in corporative analysis of various
A. Source of Finance
B. Source of Services
C. Source of material
D. Product
Option: A
85) Which method does not consider the time value of money
A. Net present value
B. Internal Rate of Return
C. Average rate of return
D. Profitability Index
Option: C
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86) Which of the following has the highest cost of capital?
A. Loans
B. Equity shares
C. Bonds
D. Preference shares
Option: B
87) When the expenses of liquidation are to be borne by the purchasing company, then the purchasing company debits:
A. Vendor company’s account
B. Bank account
C. Goodwill account.
D. Realisation A/c
Option:C
88) When the purchasing company makes payment of the purchase consideration, it debits:
A. Business purchase account
B. Assets account
C. Vendor company’s account.
D. Realisation A/c
Option:C
89) The share capital, to the extent already held by the purchasing company, is closed by the vendor company by crediting it to:
A. Share capital account
B. Purchasing company’s account
C. Realisation account.
D. Business purchase account
Option: C.
90) Which of the following is not included in the assumption on which Myron Gorden proposed a model on Stock valuation
A. Retained earning the only source of financing
B. Finite Life of the firm
C. Taxes do not exist
D. Constant rate of return on firms investment.
Option: B
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