This quiz works best with JavaScript enabled. Home > Accounting > Accountancy > Accountancy – Quiz 13 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Accountancy Quiz 13 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which of the following best describes a trial balance? A) Shows the financial position of a business. B) It is a special account. C) Shows all the entries in the books. D) It is a list of balances on the books. Show Answer Correct Answer: D) It is a list of balances on the books. 2. The type or branch of accounting that generates reports for the use of external parties such as creditors, investors and government agencies is known as: A) Financial Accounting. B) Managerial Accounting. C) Tax Accounting. D) Forensic Accounting. Show Answer Correct Answer: A) Financial Accounting. 3. The financial condition of a business refers to its financial strength. A) True. B) False. Show Answer Correct Answer: A) True. 4. Goodwill by super profit= A) SPxNRR/100. B) SPx100/AP. C) SPx No of year purchase. D) SPx capital employed/100. Show Answer Correct Answer: C) SPx No of year purchase. 5. The Receipts and Payments account contains A) Capital Receipts and Payments only. B) Revenue Receipts Payments only. C) Petty Receipts and Payments only. D) All receipts and Payments. Show Answer Correct Answer: D) All receipts and Payments. 6. If the due date of bill falls on public holiday then the maturity date is on A) One day after maturity date. B) One day before maturity day. C) Public holidays. D) None of these. Show Answer Correct Answer: B) One day before maturity day. 7. Ram and Mohan are childhood friends. Ram is a consultant whereas Mohan is an architect. They contributed equal amounts and purchased a building for Rs. 2 crores. After a year, they sold it for Rs. 3 crores and shared the equally. Are they doing the business in partnership? A) Yes. B) No. Show Answer Correct Answer: B) No. 8. Discount on issue of debentures is restricted to A) 10%. B) 20%. C) 25%. D) None of these. Show Answer Correct Answer: D) None of these. 9. On dissolution patents appearing in balance sheet are transferred to which account A) Bank account. B) Realisation account. C) Capital account. D) None account. Show Answer Correct Answer: B) Realisation account. 10. In the event of death of a partner, the amount of general reserve is transferred partners capital accounts in A) New profit sharing ratio. B) Old profit sharing ratio. C) In Capital ratio. D) In equal ratio. Show Answer Correct Answer: B) Old profit sharing ratio. 11. Which of the following is an example of Cash Flow from Operating Activities? A) Payment of Dividend. B) Issue of Shares. C) Purchase of Fixed Assets for Cash. D) Receipts from Debtors. Show Answer Correct Answer: D) Receipts from Debtors. 12. Patents, Copyrights and Trademarks are A) Current Assets. B) Fixed Assets. C) Intangible Assets. D) Investments. Show Answer Correct Answer: C) Intangible Assets. 13. Assets that can be converted into cash in one accounting period are called? A) Fixed assets. B) Fictitious assets. C) Current assets. D) Non current assets. Show Answer Correct Answer: C) Current assets. 14. Super Profit is A) Normal Profit-Average Profit. B) Average Profit-Normal Profit. C) Normal Profit +Average Profit. D) None of these. Show Answer Correct Answer: B) Average Profit-Normal Profit. 15. Rupees 5000 received from Mohan whose account was written off as bad in the previous year should be credited to ..... A) Mohan account. B) Bad debts account. C) Bad debts recovered account. D) None of these. Show Answer Correct Answer: C) Bad debts recovered account. 16. Who can issue shares through private placement? A) Public Company. B) Private Company. C) Both Public and Private Company. D) Company issuing ESOPs. E) Promoters. Show Answer Correct Answer: C) Both Public and Private Company. 17. How can a partner be admitted A) Act 1932. B) Act1940. C) Act 1946. D) Act 1967. Show Answer Correct Answer: A) Act 1932. 18. A comparison between two components of financial information. A) Financial ratio. B) Ratio analysis. C) Money ratio. D) Cash ratio. Show Answer Correct Answer: A) Financial ratio. 19. A Debenture Holder is entitled to A) Fixed Dividend. B) Share in Profit. C) Voting rights in the Company. D) Interest at the Fixed Rate. Show Answer Correct Answer: D) Interest at the Fixed Rate. 20. A) Liquidity Ratio explain the liquidity Position of the concernb) Current ratio express the short term liquidity of the Concern A) Both the Statement are Correct. B) A is Correct but B is Wrong. C) B is Correct but A is Wrong. D) Both the Statement are Wrong. Show Answer Correct Answer: A) Both the Statement are Correct. ← 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