This quiz works best with JavaScript enabled. Home > Accounting > Accountancy > Accountancy – Quiz 14 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Accountancy Quiz 14 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Could there be a partnership agreement? A) A. Oral. B) B. written. C) S. written or oral. D) The. none of these. Show Answer Correct Answer: C) S. written or oral. 2. The cash-book meant for recording petty expenses is called- A) Simple cash-book. B) Petty cash-book. C) Triple column. D) None of these. Show Answer Correct Answer: B) Petty cash-book. 3. WHICH SYSTEM OF ACCOUNTING IS RELIABLE? A) SINGLE ENTRY SYSTEM. B) DOUBLE ENTRY SYSTEM. C) BOTH ARE EQUALLY RELIABLE. D) NONE OF THEM IS RELIABLE. Show Answer Correct Answer: B) DOUBLE ENTRY SYSTEM. 4. A and B are partner's sharing profit equally. A draw regularly Rs. 4, 000 at the end of every month for 6 months. Year ended on 30thSeptember 2018, calculate interest on drawings @ rate 5% p.a. A) Rs. 350. B) Rs. 450. C) Rs. 150. D) Rs. 250. Show Answer Correct Answer: D) Rs. 250. 5. Rent received by a builder will be classified under which activity A) Financing. B) Operating. C) Investing. D) None of these. Show Answer Correct Answer: B) Operating. 6. In order too maintain fair dealings at the time of admission it is necessary to revalue assets &liabilities the firm to their A) Cost price. B) Cost price less depreciation. C) True value. D) None of above. Show Answer Correct Answer: C) True value. 7. Which account is classified as an Asset? A) Concert Tickets. B) Babysitting payment. C) Allowance. D) Cash. Show Answer Correct Answer: D) Cash. 8. Sacrificing Ratio = A) Gaining Ratio-Old Profit Share. B) Old Profit Share-New Profit Share. C) New Profit Share-Old Profit Share. D) Old Profit Share-Gaining Ratio. Show Answer Correct Answer: B) Old Profit Share-New Profit Share. 9. Is interest paid on loan in the absence of partnership deed? A) A. 10 annual. B) B. 6 percent. C) S. 6 percent annually. D) The. 10 percent. Show Answer Correct Answer: C) S. 6 percent annually. 10. A and B were partners in a firm sharing profits and losses equally.with effect from 1st April 2019 they decided to share profits in the ratio 4:3. Due to change in profit sharing ratio B's gain or sacrifice will be: A) Gain 1/14. B) Sacrifice 1/14. C) Gain 4/7. D) Sacrifice 3/7. Show Answer Correct Answer: B) Sacrifice 1/14. 11. Sole Proprietorship is most suitable for A) Medium scale concerns. B) Large scale concerns. C) Small scale concerns. D) None of the above. Show Answer Correct Answer: C) Small scale concerns. 12. X, Y, Z are partners. Profit Sharing ratio 5:4:3. X RETIRE. Find new ratio A) 5:3. B) 3:4. C) 4:3. D) 5:4. Show Answer Correct Answer: C) 4:3. 13. Two basic measures of liquidity are: A) Inventory turnover and Current ratio. B) Current ratio and Quick ratio. C) Gross Profit ratio and Operating ratio. D) Current ratio and Average Collection period. Show Answer Correct Answer: B) Current ratio and Quick ratio. 14. 6 Sales return book is used to record A) Returns of goods by the customer for which cash is paid immediately. B) Returns of goods by the customer for which cash is not paid immediately. C) Returns of assets by the customer for which cash is not paid immediately. D) Returns of assets by the customer for which cash is paid immediately . Show Answer Correct Answer: B) Returns of goods by the customer for which cash is not paid immediately. 15. Which analysis is considered as dynamic A) Horizontal analysis. B) Vertical analysis. C) Internal analysis. D) External analysis. Show Answer Correct Answer: A) Horizontal analysis. 16. Promoters of company may be issued shares for the services rendered by them. the entry will be: A) Incorporation cost a/c Dr.To Share capital a/c. B) Formation Exp. a/c Dr.To Share capital a/c. C) Either of the above. D) None of the above. Show Answer Correct Answer: C) Either of the above. 17. Net profit of a firm is ₹ 49, 500. Manager is entitled to a commission of 10% on profits before charging his commission. Manager's Commission will be: A) 4500. B) 4950. C) 5500. D) 495. Show Answer Correct Answer: B) 4950. 18. From the following information, how much amount will be shown as Cash Flow from Financing Activities? Equity Share Capital cr. yr:20, 00, 000 pr. yr:18, 00, 000 10% Debentures cr. yr.:2, 00, 000 2nd pr.:3, 00, 000 Securities Premium Reserve cr yr:1, 00, 000 pr.yr:80, 000 Additional Information:Debentures were redeemed on 31st March, 2020 A) 80, 000. B) 90, 000. C) 1, 20, 000. D) 1, 60, 000. Show Answer Correct Answer: B) 90, 000. 19. Journal entries goodwill already appears in the books A) Old partners capital To goodwill. B) New partner capital To goodwill. C) Goodwill To old partner. D) Goodwill To new partner. Show Answer Correct Answer: A) Old partners capital To goodwill. 20. Cash sales to Ahmed Raza will be posted to debit side of:(2016) A) Ahmed Raza's account. B) Sales account. C) Cash account. D) None of these. Show Answer Correct Answer: C) Cash account. ← 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