This quiz works best with JavaScript enabled. Home > Accounting > Accountancy > Accountancy – Quiz 1 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Accountancy Quiz 1 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. If payment is to be made to the person whose name has been written after the words "pay" on cheque is called a ..... A) Bearer cheque. B) Order cheque. C) Dishonour of a cheque. D) Crossed cheque. E) None of them. Show Answer Correct Answer: A) Bearer cheque. 2. New partner does not bring his share in cash A) Old partners cap. To new partners. B) New partners cap. To old partners. C) New partners current account To old partners cap. D) New partners cap. To new partners current a/c. Show Answer Correct Answer: C) New partners current account To old partners cap. 3. Accounting A) Includes Book-keeping. B) Does not include Book-keeping. C) May or may not include Book-keeping. D) None of these. Show Answer Correct Answer: A) Includes Book-keeping. 4. The ratio obtained by subtracting the old ratio from the new ratio is called? A) A. sacrifice ratio. B) B. equal ratio. C) S. profit ratio. D) The. Loss a ratio. Show Answer Correct Answer: C) S. profit ratio. 5. A player plays football as a profession in any club is ..... activity. A) Non-economic. B) Economic. C) Religious. D) Satisfaction. Show Answer Correct Answer: B) Economic. 6. Debit balance of the current account will be shown on the balance sheet A) Liability. B) Assets. Show Answer Correct Answer: B) Assets. 7. A company purchased a building for 7, 00, 000 and issued equity shares at premium of 20% A) Share capital a/c dr. 800, 000To building a/c 720, 000To SPR a/c 80, 000. B) Building a/c dr. 800, 000To share capital a/c 640, 000To SPR a/c 120, 000. C) Share capital a/c dr. 720, 000 To building a/c 7, 00, 000 To SPR a/c 20, 000. D) Building a/c dr. 720, 000To share capital a/c 600, 000To SPR a/c 120, 000. Show Answer Correct Answer: D) Building a/c dr. 720, 000To share capital a/c 600, 000To SPR a/c 120, 000. 8. Which account is classified as an Liability? A) Concert Tickets. B) Bank Account. C) Allowance. D) Auto Loan. Show Answer Correct Answer: D) Auto Loan. 9. A machinery which cost 200, 000 is depreciated at 25% per year using the written down value method. At the end of three years it will have a net book value of A) 1, 50, 000. B) 84, 375. C) 1, 12, 500. D) 1, 00, 000. Show Answer Correct Answer: B) 84, 375. 10. A debtor of Rs.5, 000, already transferred to Realisation Account agreed to pay the Realisation Expenses of Rs.4, 500 in full settlement of his claim. Choose the correct option: A) Realisation Account will only be debited by Rs.4, 500. B) No Entry will be passsed. Show Answer Correct Answer: B) No Entry will be passsed. 11. The part of the capital which can be called-up only in case of winding up of the Company is called ..... A) Authorised Capital. B) Called up Capital. C) Uncalled Capital. D) Reserve Capital. Show Answer Correct Answer: D) Reserve Capital. 12. The balance in Petty Cash Book is ..... A) An expense. B) A profit. C) A liability. D) An asset. Show Answer Correct Answer: D) An asset. 13. Lower the Debt Equity ratio A) Lower the protection to creditors. B) Higher the protection to creditors. C) It does not affect the creditors. D) None of the above. Show Answer Correct Answer: B) Higher the protection to creditors. 14. Income received before services or goods are provided is referred to as..... A) Net income. B) Gross income. C) Income received in advance. D) Accrued income. Show Answer Correct Answer: C) Income received in advance. 15. If the two sides of an account are equal then account will show:(2015) A) Debit balance. B) Zero balance. C) Credit balance. D) Debit, Credit balance. Show Answer Correct Answer: B) Zero balance. 16. In the absence of partnership deed, the following rule will apply A) No interest on capital. B) Profit sharing in capital ratio. C) Profit based salary to working partner. D) 9% p.a. interest on drawings. Show Answer Correct Answer: A) No interest on capital. 17. Income that has been deducted from expenses and other costs is referred to as..... A) Business income. B) Non-business income. C) Net income. D) Gross income. Show Answer Correct Answer: C) Net income. 18. Where do we show wages&salary? A) Trading credit side. B) Trading debit side. Show Answer Correct Answer: B) Trading debit side. 19. ON WHOM THE TRADE BILL DRAWN? A) Seller. B) Creditor. C) Debtor. D) Owner. Show Answer Correct Answer: C) Debtor. 20. In the absence of partnership deed, is interest paid on loan drawn? A) A. 6 percent annually. B) B. 8 percent annually. C) S. 9 percent annually. D) The. 0 percent per annum. Show Answer Correct Answer: D) The. 0 percent per annum. 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