This quiz works best with JavaScript enabled. Home > Accounting > Accountancy > Accountancy – Quiz 11 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Accountancy Quiz 11 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. The order that you would prepare your financial statements would be ..... A) Work Sheet, Balance Sheet, Income Statement, Statement of Owner's Equity. B) Statement of Owner's Equity, Income Statement, Balance Sheet. C) Statement of Owner's Equity, Balance Sheet, Income Statement, Work Sheet. D) Income Statement, Statement of Owner's Equity, Balance Sheet. Show Answer Correct Answer: D) Income Statement, Statement of Owner's Equity, Balance Sheet. 2. A and B are partners sharing profits in the ratio 2:3, they admit C as a partner for 1/4 share, the sacrificing ratio of a and b will be A) 2:3. B) 1:1. C) 3:2. D) 2:1. Show Answer Correct Answer: A) 2:3. 3. The calculation and interpretation of financial ratios A) Financial Ratio. B) Money Ratio. C) Ratio Analysis. D) Cash Ratio. Show Answer Correct Answer: C) Ratio Analysis. 4. Which type of company can issue share to public A) Public. B) Private. C) One person company. D) None of these. Show Answer Correct Answer: A) Public. 5. Current Ratio of 'Jayanti Ltd.' is 3:2. The Finance Manager wants to maintain it at 2:1. Following options are available:(i) He can repay Trade payables. (ii) He can discharge Bills Payable. (iii) He can purchase Stock-in-Trade for cash. (iv) He can sell the Fixed Asset (Book value ' 10, 000) for ' 9, 000. A) (i) is correct. B) (ii) is correct. C) (i) and (iii) are correct. D) (i), (ii) and (iv) are correct. Show Answer Correct Answer: D) (i), (ii) and (iv) are correct. 6. Payment of Dividend will be received first by A) Equity shareholders. B) Cumulative preference shareholders. C) Preference shareholders. D) Debentures. Show Answer Correct Answer: C) Preference shareholders. 7. What is the journal entry for creating Reserve? A) Profit & Loss a/c-dr to P & L app a/c. B) P & L app a/c-dr to P & L a/c. C) Reserve a/c-dr to P & L appropriation a/c. D) P & L app a/c to Reserve a/c. Show Answer Correct Answer: D) P & L app a/c to Reserve a/c. 8. P, Q & R are partners in 3:2:1. R is guaranteed that his share of profit will not be less than ₹ 70, 000. Any deficiency will be borne by P & Q in the ratio of 2:1. Firm's profit was ₹ 2, 40, 000. Share of P will be: A) ₹ 1, 00, 000. B) ₹ 1, 10, 000. C) ₹ 1, 20, 000. D) ₹ 1, 02, 000. Show Answer Correct Answer: A) ₹ 1, 00, 000. 9. A person who owes money to firm against goods sold is called a A) Creditor. B) Debtor. C) Both (a) And. D) None of these. Show Answer Correct Answer: B) Debtor. 10. A machine is purchased on 1st April 2018 for 80, 000, Expenses incurred on its installation is Rs:20, 000. The residual value at the end of its expected usefull life of 4 years is estimated at Rs:10, 000. The amount of depreciation under straight line method, for the year ended on 31ts march 2019 will be A) 22, 500. B) 20, 000. C) 17, 500. D) 13, 125. Show Answer Correct Answer: A) 22, 500. 11. Sold goods for cash of the list price of Rs 8, 000 at 10% trade discount and 3% cash discount. Posting will be made in discount A/c: A) Rs 216 on debit side. B) Rs 216 on Credit side. C) Rs 240 on debit side. D) Rs 240 on credit side. Show Answer Correct Answer: A) Rs 216 on debit side. 12. Copyrights, Patents, and Trademarks are examples of A) Current assets. B) Fixed assets. C) Noncurrent assets. D) Intangible assets. Show Answer Correct Answer: D) Intangible assets. 13. X, Y and z are partners in a firm sharing profits and losses in the ratio of 5:3:2. The partners decided to share future profits and losses in the ratio of 3:2:1. Each partners gain or sacrifice due to change in the ratio will be: A) X sacrifice 1/30; Y gain 1/30; Z nil. B) X gain 1/30;Y nil; Z sacrifice 1/30. C) X nil; Y sacrifice 1/30; Z gain 1/30. D) X nil; Y gain 1/30; Z sacrifice 1/30. Show Answer Correct Answer: D) X nil; Y gain 1/30; Z sacrifice 1/30. 14. The financial statement that reports the changes in the capital account for a proprietorship for a period of time. A) Statement of Owner's Equity. B) Balance Sheet. C) Income Statement. D) Trial Balance. Show Answer Correct Answer: A) Statement of Owner's Equity. 15. Accounting is referred to as the "language of ..... " A) Profit. B) Life. C) Accounting. D) Business. Show Answer Correct Answer: D) Business. 16. Capital + ..... drawings =net capital recorded in liablities A) Gross profit. B) Net profit. C) Dividend. D) Purchases. Show Answer Correct Answer: B) Net profit. 17. A & B are partners, their firm charges interest on drawing @10%. Be draws 1000 at the beginning of every month. what will be Average period for which IOD will be calculated A) 11/2. B) 12. C) 13/2. D) 6. Show Answer Correct Answer: D) 6. 18. If the owner takes goods from the business for personal use, the account to be credited is:(2017) A) Owner Account. B) Bank Account. C) Purchases Account. D) Cash Account. Show Answer Correct Answer: C) Purchases Account. 19. Ascertain the accounting equation when, purchase goods from Mr Y on credit for Rs. 30, 000 A) 30, 000 = 30, 000 + 0. B) (-) 30, 000 + 30, 000 = 0 + 0. C) 30, 000 = 0 + 30, 000. D) 0 = 30, 000 + (-) 30, 000. Show Answer Correct Answer: A) 30, 000 = 30, 000 + 0. 20. Amount withdrawn by the owner for personal use ..... A) Capital. B) Asset. C) Drawings. D) Liability. Show Answer Correct Answer: C) Drawings. ← 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