This quiz works best with JavaScript enabled. Home > Accounting > Accountancy > Accountancy – Quiz 15 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Accountancy Quiz 15 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Trade discount means A) Cash discount. B) No discount. C) Reduction in price. D) None of these. Show Answer Correct Answer: C) Reduction in price. 2. The process of accounting starts with ..... and ends with ..... A) Identifying the transaction and communicating information. B) Identifying the transaction and interpreting the financial transaction. C) Recording and classifying. D) Summarising and communicating information. Show Answer Correct Answer: A) Identifying the transaction and communicating information. 3. Accounting is also known as the language of business A) True. B) False. Show Answer Correct Answer: A) True. 4. Each partner carrying on the business is the principal as well as agent for all the other partners. A) True. B) False. C) Partially True. D) None of above. Show Answer Correct Answer: A) True. 5. Which one of the following is representative personal account? A) Building A/c. B) Outstanding salary A/c. C) Mahesh A/c. D) Balan & Co. Show Answer Correct Answer: B) Outstanding salary A/c. 6. The information regarding the rate of dividend is a material information for the investors since it provides a basis for forecasting future dividends.The qualitative characteristics of accounting information highlighted here is: A) Relevance. B) Understandability. C) Reliability. D) Comparability. Show Answer Correct Answer: A) Relevance. 7. Is a partnership firm examined as an individual a legal entity? A) No. B) Yes. C) Partialy yes. D) None of above. Show Answer Correct Answer: A) No. 8. The payment of a ..... cheque cannot be made direct to the party on the counter 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. 9. The Shareholders' gets dividends, Debenture holders will get..... A) Interest. B) Fees. C) Commission. D) Bonus. Show Answer Correct Answer: A) Interest. 10. Amount paid or payable against purchase of goods is A) Revenue expenditure. B) Capital expenditure. C) Both (a) and (b). D) None of these. Show Answer Correct Answer: A) Revenue expenditure. 11. Land & Building Account is ..... Account A) Personal. B) Real. C) Nominal. D) Assets. Show Answer Correct Answer: B) Real. 12. In case of absence of Partnership Deed, Interest on loan is given to the partners @ A) 5%. B) 8%. C) 6%. D) 10%. Show Answer Correct Answer: C) 6%. 13. Amount which the firm owes to outsiders is known as ..... A) Capital. B) Expenses. C) Liability. D) Asset. Show Answer Correct Answer: C) Liability. 14. Following amounts were payable on issue of shares by a Abtech Ltd. Rs.20 on application, Rs. 40 on allotment. Rs. 20 on first call and Rs. 20 on final call. Raj holding 1, 000 shares paid only application and allotment money whereas James holding 800 shares did not payfinal call. Amount of calls in arrears will be ..... A) 42, 000. B) 56, 000. C) 72, 000. D) 66, 000. Show Answer Correct Answer: B) 56, 000. 15. 10 Main objective of preparing ledger account is to A) Ascertain the financial position. B) Ascertain the profit or loss. C) Ascertain the profit or loss and the financial position. D) Know the balance of each ledger account. Show Answer Correct Answer: D) Know the balance of each ledger account. 16. A transaction is an exchange in which participant's ..... or ..... value. A) A. Receives, sacrifices. B) B. receives, earn. C) C. earn, sacrifices. D) Goods, services. Show Answer Correct Answer: A) A. Receives, sacrifices. 17. Profit earn throught normal activities of business A) Operating profit. B) Net profit. C) Gross profit. D) Manufacturing profit. Show Answer Correct Answer: A) Operating profit. 18. X and Y are partners. Z is admitted as partner for 1/7thshare. New Profit-sharing Ratio will be A) 2:3:1. B) 3:3:1. C) 6:5:2. D) 1:1:1. Show Answer Correct Answer: B) 3:3:1. 19. WHEN AN UNRECORDED ASSET IS SOLD ON DISSOLUTION, IT IS CREDITED A) REALIZATION ACCOUNT. B) REVALUATION ACCOUNT. C) ASSET ACCOUNT. D) NONE OF THESE. Show Answer Correct Answer: A) REALIZATION ACCOUNT. 20. In India, the accounting standard board was set up in the year- A) 1972. B) 1977. C) 1956. D) 1932. Show Answer Correct Answer: B) 1977. ← 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