Commerce Objective Questions-Multiple Choice Questions (MCQ)

Commerce Objective Questions

Commerce Objective Questions with Answers & Expected Free PDF Download Commerce solved questions and answers Set 1 or Commerce objective quiz questions with answers.

1. Total sales is Rs. 7,60,000, cash sales Rs. 30,000 collection period is 25 days, debtors at Balance Sheet date will be–
(A) Rs. 80,000 (B) Rs. 70,000
(C) Rs. 60,000 (D) Rs. 50,000
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2. Price earning ratio is 83•33% and E.P.S. is Rs. 30. The market price of equity share will be–
(A) Rs. 33•33 (B) Rs. 66•67
(C) Rs. 20 (D) Rs. 25
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3. If the current ratio is 2, current assests are worth Rs. 1,600, if current ratio is not allowed to fall below 1•5, how much additional can be borrowed by the company on the short term basis ?
(A) Rs. 400 (B) Rs. 600
(C) Rs. 2,733 (D) Rs. 800
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4. Rate of Gross Profit on cost is 25%. Total sales is Rs. 1,00,000 and Average Stock is Rs. 1,60,000. Stock Turnover Ratio will be–
(A) 0•5 times (B) 0•8 times
(C) 0•10 times (D) 0•4 times
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5. Average stock of firm is Rs. 80,000, the opening stock is Rs. 10,000 less than closing stock. Find opening stock.
(A) Rs. 95,000 (B) Rs. 85,000
(C) Rs. 90,000 (D) Rs. 75,000
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6. Auditing of accounts is compulsory for–
(A) Sole proprietary business (B) Partnership firms
(C) Joint Stock Companies (D) None of the above
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7. Under vouching, checking is done of–
(A) Journal and Ledger (B) Profit and Loss Account
(C) Balance Sheet (D) All of the above
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8. The goods taken by the proprietor from the shop is debited to–
(A) Shop account (B) Goods account
(C) Capital account (D) Drawings accounts
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9. Which of the following types of business organisation has a separate legal entity ?
(A) Joint Hindu family business (B) Partnership
(C) Joint Stock Company (D) None of the above
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10. The organisation in which power of authority runs in straight line is called–
(A) Line organization (B) Functional organisation
(C) Committee organization (D) None of the above
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11. Indian Partnership Act was passed in the year–
(A) 1956 (B) 1936
(C) 1932 (D) 1930
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12. According to the Partnership Act, the maximum number of partners in a banking firm may be–
(A) 10 (B) 12
(C) 4 (D) 20
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13. Dissolution of Partnership takes place when–
(A) A partner misbehaves (B) A partner becomes of unsound mind
(C) Business is running at a loss (D) A partner dies
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14. The existence of a Partnership Firm is–
(A) Separate from partners (B) Not separate from partners
(C) Both (A) and (B) (D) None of the above
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15. In which State the Mitakshara form of H.U.F. business does not apply ?
(A) Rajasthan (B) Gujarat
(C) West Bengal (D) Kerala
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16. What is outsourcing of production and concentrating on marketing operations in international business, known as ?
(A) Licensing (B) Franchising
(C) Contract manufacturing (D) Joint venture
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17. Which of the following is not a feature of bonds ?
(A) Par value (B) Yield to maturity
(C) Coupon rate (D) Maturity
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18. On 1st April, 2013, Y Ltd. Issued 1000, 12% debentures of Rs. 100 each at a discount of 6%. These debentures are redeemable in five equal annual instalments at the end of each year. What is the amount of discount to be written off in the first year i.e. on 31st March, 2007, through P & L A/c ?
(A) Rs. 2000 (B) Rs. 1800
(C) Rs. 1200 (D) Rs. 600
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19. XYZ Ltd. issued 10,000 shares of Rs. 100 each at Rs. 120 per share with Rs. 25 on application, Rs. 45 on allotment including premium, Rs. 20 on first call and Rs. 30 on final call. Govind who held 200 shares did not pay any call money and his shares were forfeited. What is the amount to be credited to Share Forfeiture Account on forfeiture ?
(A) Rs. 14,000 (B) Rs. 10,000
(C) Rs. 9,000 (D) Rs. 4,000
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20. X Ltd. purchased a car from Maruti Udyog Ltd. for Rs. 5,00,000. As per agreement Rs. 80,000 was to be paid in cash and the balance by issue of shares of Rs. 10 each at a premium of Rs. 5 per share. How many shares should X Ltd. issue to Maruti Udyog Ltd. for the car ?
(A) 30,000 shares (B) 29,000 shares
(C) 28,500 shares (D) 28,000 shares
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