CBSE Class 12 Accountancy Exam 2026: Top 50 MCQs with Answers for High Score in Exam!

CBSE Class 12th Accountancy Important MCQs: The CBSE Class 12th Accountancy Board Exam 2026 requires thorough practice, especially with Multiple-Choice Questions (MCQs), which play a key role in scoring well. As the exam is scheduled for 24th Feb, 2026. To help students prepare efficiently, we have compiled the top 50 MCQs from previous years' question papers and CBSE sample papers, along with detailed answers. These important MCQs cover essential topics from all the chapters, ensuring a strong revision before the exam. Solve these high-weightage questions to boost your confidence and improve your exam performance.

CBSE Class 12th Accountancy Paper: Key Highlights

CBSE Class 12th Accountancy Paper: Breakdown of Marks & Question Paper Structure

Question Paper Structure: 

CBSE Class 12th Accountancy Exam Top 50 MCQs with Answers

Here are 50 important multiple-choice questions (MCQs) from all chapters in your 12th Accountancy syllabus along with their answers:

CBSE Class 12 Accountancy: Top 50 MCQs

1. In the absence of a Partnership Deed, the rate of interest on a partner's loan to the firm is:

(A) 12% p.a. (B) 6% p.a. (C) 10% p.a. (D) No interest is allowed

2. Sacrificing Ratio is calculated at the time of:

(A) Retirement of a partner (B) Death of a partner (C) Admission of a new partner (D) Dissolution of the firm

3. Goodwill is a/an:

(A) Fictitious Asset (B) Current Asset (C) Intangible Asset (D) Tangible Asset

4. On the admission of a new partner, the balance of General Reserve in the Balance Sheet is transferred to:

(A) Revaluation Account (B) New Partner's Capital Account (C) Old Partners' Capital Accounts in Old Ratio (D) All Partners' Capital Accounts in New Ratio

5. Revaluation Account is a:

(A) Real Account (B) Personal Account (C) Nominal Account (D) Asset Account

6. The maximum number of partners allowed in a firm as per the Companies Act, 2013 is:

(A) 20 (B) 100 (C) 50 (D) 10

7. Interest on drawings for a partner withdrawing equal amounts at the beginning of each month is charged for:

(A) 6 months (B) 5.5 months (C) 6.5 months (D) 7 months

8. Liability of a partner in a partnership firm is:

(A) Limited to his capital (B) Unlimited (C) Limited to the value of firm's assets (D) Determined by the court

9. On the death of a partner, his share of profit from the last Balance Sheet date till the date of death is transferred to:

(A) Profit & Loss Account (B) Profit & Loss Appropriation Account (C) Profit & Loss Suspense Account (D) Partner's Loan Account

10. Securities Premium Reserve can be used for:

(A) Paying tax (B) Paying dividends (C) Writing off preliminary expenses (D) Purchasing fixed assets

11. As per Section 53 of Companies Act 2013, the issue of shares at a discount is:

(A) Allowed for all companies (B) Prohibited (except for sweat equity) (C) Allowed with SEBI permission (D) Allowed only to existing shareholders

12. Minimum subscription for a public issue as per SEBI guidelines is:

(A) 100% (B) 25% (C) 50% (D) 90%

13. Share Forfeiture Account is shown in the Balance Sheet under the head:

(A) Reserves and Surplus (B) Share Capital (C) Current Liabilities (D) Non-current Liabilities

14. Equity shareholders are the:

(A) Creditors of the company (B) Customers of the company (C) Owners of the company (D) Managers of the company

15. If shares are forfeited on which premium was already received, Securities Premium A/c is:

(A) Debited (B) Credited (C) Not Debited (D) Closed

16. Debentures represent the:

(A) Long-term Debt of the company (B) Share Capital of the company (C) Director's investment (D) Short-term Loan

17. Interest on Debentures is a:

(A) Appropriation of profit (B) Charge against profit (C) Transfer to reserve (D) None of these

18. Premium on Redemption of Debentures Account is a:

(A) Real Account (B) Nominal Account (C) Personal Account (Liability) (D) Asset Account

19. Analysis of Financial Statements is a tool for:

(A) Window dressing (B) Decision making (C) Hiding losses (D) Increasing tax liability

20. Common Size Balance Sheet is also known as:

(A) Horizontal Analysis (B) External Analysis (C) Vertical Analysis (D) Dynamic Analysis

21. The ideal Current Ratio is:

(A) 1 : 1 (B) 2 : 1 (C) 1 : 2 (D) 3 : 1

22. Liquid Assets are calculated as:

(A) Current Assets + Inventory (B) Current Assets – (Inventory + Prepaid Expenses) (C) Current Assets – Creditors (D) Fixed Assets – Depreciation

23. Dividend paid by a non-financial company is a:

(A) Operating Activity (B) Investing Activity (C) Financing Activity (D) Cash Equivalent

24. Operating Ratio is a:

(A) Liquidity Ratio (B) Solvency Ratio (C) Profitability Ratio (D) Turnover Ratio

25. Gain on sale of fixed assets is:

(A) Added to net profit in Operating Activities (B) Deducted from net profit in Operating Activities (C) Ignored in Cash Flow Statement (D) Added to Investing Activities

26. Change in Profit Sharing Ratio among existing partners results in:

(A) Dissolution of Firm (B) Reconstitution of Firm (C) Winding up of Company (D) None of these

27. At the time of retirement, the retiring partner’s capital account is credited with:

(A) His share of Goodwill (B) Total Goodwill of the firm (C) Share of Goodwill of remaining partners (D) None of these

28. Realisation Account is prepared at the time of:

(A) Admission (B) Retirement (C) Death (D) Dissolution

29. Calls in Arrears are ________ from Called-up Capital:

(A) Added (B) Deducted (C) Multiplied (D) Ignored

30. Capital Reserve is created out of:

(A) Normal Profits (B) Capital Profits (C) Sale of Goods (D) Interest received

31. Debentures can be issued:

(A) At Par (B) At Premium (C) At Discount (D) All of the above

32. Proprietary Ratio shows the relationship between:

(A) Total Assets and Total Liabilities (B) Shareholders' Funds and Total Assets (C) Current Assets and Current Liabilities (D) Net Profit and Sales

33. Cash Flow Statement is prepared as per:

(A) Accounting Standard 1 (B) Accounting Standard 3 (C) Accounting Standard 10 (D) Accounting Standard 26

34. Payment of Income Tax is classified as:

(A) Operating Activity (B) Investing Activity (C) Financing Activity (D) Extra-ordinary item

35. Interest received by a Finance Company is part of:

(A) Investing Activity (B) Operating Activity (C) Financing Activity (D) None of these

36. Gaining Ratio =

(A) Old Ratio – New Ratio (B) New Ratio – Old Ratio (C) Sacrificing Ratio + Old Ratio (D) None of these

37. The balance of the Revaluation Account is transferred to Partners' Capital Accounts in:

(A) New Ratio (B) Old Ratio (C) Sacrificing Ratio (D) Capital Ratio

38. Unrecorded liabilities when paid at the time of dissolution are debited to:

(A) Realisation A/c (B) Partners' Capital A/c (C) Cash A/c (D) Liability A/c

39. Interest on Calls in Advance is paid at the rate of:

(A) 6% p.a. (B) 10% p.a. (C) 12% p.a. (D) 5% p.a.

40. A company is an:

(A) Artificial Legal Person (B) Natural Person (C) Partnership (D) Sole Proprietorship

41. Inventory Turnover Ratio is a/an:

(A) Liquidity Ratio (B) Activity Ratio (C) Solvency Ratio (D) Profitability Ratio

42. Working Capital =

(A) Current Assets + Current Liabilities (B) Current Assets – Current Liabilities (C) Fixed Assets – Current Assets (D) Cash + Bank

43. Ideal Quick Ratio is:

(A) 2 : 1 (B) 1 : 2 (C) 1 : 1 (D) 0.5 : 1

44. Return on Investment (ROI) is calculated as:

(A) (Net Profit before Interest & Tax / Capital Employed) × 100 (B) (Net Profit after Tax / Sales) × 100 (C) (Gross Profit / Sales) × 100 (D) (Operating Profit / Sales) × 100

45. Which of the following is not a Cash Inflow?

(A) Sale of Fixed Assets (B) Issue of Shares (C) Purchase of Machinery (D) Cash received from Debtors

46. Preliminary Expenses are shown in the Balance Sheet under:

(A) Non-current Assets (B) Current Assets (C) They are written off and not shown (D) Fixed Assets

47. Accumulated losses are transferred to partners in:

(A) Old Profit Sharing Ratio (B) New Profit Sharing Ratio (C) Gaining Ratio (D) Capital Ratio

48. Premium on issue of debentures is a:

(A) Capital Gain (B) Capital Loss (C) Revenue Gain (D) Revenue Expense

49. Debt-Equity Ratio is a:

(A) Liquidity Ratio (B) Activity Ratio (C) Solvency Ratio (D) Profitability Ratio

50. Marketable Securities are treated as:

(A) Investing Activity (B) Cash Equivalents (C) Operating Activity (D) Financing Activity

Answer Key: 

Mastering these top 50 MCQs is a crucial step towards securing an excellent score in the CBSE Class 12 Accountancy Board Exam 2026. By thoroughly reviewing these questions and their explanations, you have strengthened your grasp on core concepts across the syllabus. Remember to manage your time wisely during the exam and use these high-yield questions as a final check of your preparation. All the best for your examination!

Check| CBSE Topper Answer Sheet Class 12 Accountancy for 2026 Board