This quiz works best with JavaScript enabled. Home > Accounting > Accountancy > Accountancy – Quiz 10 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Accountancy Quiz 10 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Business is said to be in a profit when A) Expenditure exceeds income. B) Income exceeds expenditure. C) Income exceeds liability. D) Assets exceed expenditure. Show Answer Correct Answer: B) Income exceeds expenditure. 2. When Goodwill is not purchased Goodwill account can: A) Never be raised in the books. B) Be raised in the books. C) Be partially raised in the books. D) The raised as per the agreement of the partners. Show Answer Correct Answer: A) Never be raised in the books. 3. Which of these claims is FALSE about a balance sheet? A balance sheet ..... A) Explains how the firm's capital has been invested. B) Shows the assets and liabilities of the firm. C) Indicates the strength of the firm's profit margin. D) Is drawn up at a specific point in time. Show Answer Correct Answer: C) Indicates the strength of the firm's profit margin. 4. In the absence of Partnership Deed, the interest is allowed on partner's capital: A) 5% p.a. B) 6% p.a. C) 5% p.a. D) No interest is allowed. Show Answer Correct Answer: B) 6% p.a. 5. Debenture holders are ..... of the Company A) Debtors. B) Creditors. C) Customers. D) Owners. Show Answer Correct Answer: B) Creditors. 6. Discount allowed to Pirbhat will be credited to:(2016) A) Pirbhat's account. B) Cash account. C) Discount allowed account. D) None of these. Show Answer Correct Answer: D) None of these. 7. What is the purpose of preparing trading account? A) To calculate net sales. B) To calculate cost of sales. C) To calculate gross profit/(loss). D) To calculate net profit. Show Answer Correct Answer: C) To calculate gross profit/(loss). 8. The persons who still owe some amount to the business are termed as ..... A) Business men. B) Creditors. C) Debtors. D) Liabilities. Show Answer Correct Answer: C) Debtors. 9. Salary paid to partners should be: A) Debited to his current A/c. B) Credited to his capital A/c. C) Credited to profit & loss appropriation A/c. D) None of these. Show Answer Correct Answer: B) Credited to his capital A/c. 10. Imprest amount- ₹ 500. What will be the amount of re-imbursement if following expenses were incurred by the petty cashier during the month-Telephone = ₹ 150, Tiffin = ₹ 50, small Repairs = ₹ 30 general expenses = ₹ 100 A) 300. B) 170. C) 330. D) 270. Show Answer Correct Answer: C) 330. 11. Accounts that are reported on the balance sheet, and whose balances are carried over from one period to the next are called A) Real account. B) Nominal account. C) Income statement. D) Not the answer above. Show Answer Correct Answer: A) Real account. 12. Objectives of Accounting A) Maintaining Accounting Records. B) Determining profit or loss. C) Facilitating Management. D) Protecting Business. E) All of the above. Show Answer Correct Answer: E) All of the above. 13. Purchase of goods from X for cash should be credited to ..... A) Purchase. B) Cash. C) X. D) Goods. Show Answer Correct Answer: B) Cash. 14. General Reserve is recorded in ..... side of ..... A) Liability, Balance Sheet. B) Assets, Balance Sheet. C) Debit, Trading Account. D) Credit, Trading Account. Show Answer Correct Answer: A) Liability, Balance Sheet. 15. Which of these are not the method of financial statement analysis? A) Ratio Analysis. B) Comparative Analysis. C) Trend Analysis. D) Capitalisation Method. Show Answer Correct Answer: D) Capitalisation Method. 16. Accounting measures the transactions in terms of- A) Differential measuring unit. B) Quantity measurement Unit. C) Average measurement unit. D) Common measurement unit. Show Answer Correct Answer: D) Common measurement unit. 17. What type of agreement is used to form a partnership business? A) Written agreement. B) Oral agreement. C) Written or oral agreement. D) None of them. Show Answer Correct Answer: C) Written or oral agreement. 18. Which of the following factors affect goodwill? (a) Favourable Location (b) Efficiency of Management (c) Market situation (d) All of these A) Favourable Location. B) Efficiency of Management. C) Market situation. D) All of these. Show Answer Correct Answer: D) All of these. 19. In petty cash Book, the system followed: A) Accrual System. B) Imprest System. C) Cash System. D) None of these. Show Answer Correct Answer: B) Imprest System. 20. Securities premium received on issue of shares is credited to securities premium reserve account A) True. B) False. Show Answer Correct Answer: A) True. ← PreviousNext →Related QuizzesAccounting QuizzesAccountancy Quiz 1Accountancy Quiz 2Accountancy Quiz 3Accountancy Quiz 4Accountancy Quiz 5Accountancy Quiz 6Accountancy Quiz 7Accountancy Quiz 8Accountancy Quiz 9 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books