This quiz works best with JavaScript enabled. Home > Accounting > Accountancy > Accountancy – Quiz 17 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Accountancy Quiz 17 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Where do we show closing stock in trading account A) Trading account debit side. B) Trading account credit side. Show Answer Correct Answer: B) Trading account credit side. 2. What is a Sole Proprietorship? A) Business owned by president. B) Business owned by several companies. C) Business owned by one person. D) Business owned by a company. Show Answer Correct Answer: C) Business owned by one person. 3. Which one of the following is NOT an essential feature of a partnership? A) There must be an agreement. B) There must be a business. C) The business must be carried on for profits. D) The business must be carried on by all the partners. Show Answer Correct Answer: D) The business must be carried on by all the partners. 4. Who developed double entry book keeping system? A) Luca pacioli. B) Evelyn. C) Thomas. D) Carter. Show Answer Correct Answer: A) Luca pacioli. 5. Securities premium reserve can be used for issuing partly paid bonus shares A) True. B) False. Show Answer Correct Answer: B) False. 6. After transferring liabilities like creditors and bills payable in realisation account, in absence of any information regarding the payment such liabilities are treated as- A) Never paid. B) Fully paid. C) Partly paid. D) None of the above. Show Answer Correct Answer: B) Fully paid. 7. Current Liability includes ..... A) Bill Payable. B) Creditors. C) Outstanding Expenses. D) All of these. Show Answer Correct Answer: D) All of these. 8. To which account salary and commission to partners and interest on capital be debited? A) Current Account. B) Capital Account. C) Profit and Loss Account. D) Profit and Loss Appropriation Account. Show Answer Correct Answer: D) Profit and Loss Appropriation Account. 9. Transposition errors are evenly divisible by the number: A) 2. B) 3. C) 4. D) 9. Show Answer Correct Answer: D) 9. 10. Bill of exchange has ..... parties A) Two. B) Three. C) Four. D) Seven. Show Answer Correct Answer: B) Three. 11. What is the meaning of Gross profit? A) Profit from providing services to customers. B) Profit from providing money to customers. C) Profit from providing goods to customers. D) Profit from providing loans to customers. Show Answer Correct Answer: C) Profit from providing goods to customers. 12. If the new partner brings any additional amount of cash other than his capital contributions then it is termed as A) Capital. B) Reserve. C) Premium for Goodwill. D) Profit. Show Answer Correct Answer: C) Premium for Goodwill. 13. Money received against share warrants is shown as A) Shareholders' funds. B) Other long-term liabilities. C) Long-term provisions. D) Other current liabilities. Show Answer Correct Answer: A) Shareholders' funds. 14. If the capital of a business is ₹ 5, 00, 000 and outside liabilities are ₹ 200, 000. Calculate total assets of the business. A) 3, 00, 000. B) 7, 00, 000. C) 10, 00, 000. D) 2, 50, 000. Show Answer Correct Answer: B) 7, 00, 000. 15. Works manager salary means what? A) Factory manager salary. B) Office manager salary. Show Answer Correct Answer: A) Factory manager salary. 16. Amit, a partner in a partnership firm withdrew Rs. 7, 000 in the beginning of each quarter. For how many months would interest on drawings be charged? A) 7.5 months. B) 6.5 months. C) 5.5 months. D) 3.5 months. Show Answer Correct Answer: A) 7.5 months. 17. If the total debits and total credits of the trial balance do not agree, the first step in locating the error is to: A) Re-add the debit and credit columns. B) Find the amount you are out of balance. C) Make certain you copied the amount correctly from the ledger account to the trial balance. D) Divide the amount you are out of balance by 2. Show Answer Correct Answer: A) Re-add the debit and credit columns. 18. Debit balance of $ 100. Making an entry of a $ 50 credit. What's the new balance? A) Credit of $ 50. B) Debit of $ 50. C) Credit of $ 100. D) None of above. Show Answer Correct Answer: B) Debit of $ 50. 19. Opening statement of affairs is usually prepared to find out the A) Capital in the beginning of the year. B) Capital at the end of the year. C) Profit made during the year. D) Loss occurred during the year. Show Answer Correct Answer: A) Capital in the beginning of the year. 20. A, B & C are partners in the ratio of 5:3:2. Before B's salary of ₹ 17, 000, firm's profit is ₹ 97, 000. How much in total B will receive from the firm? A) ₹ 17, 000. B) ₹ 40, 000. C) ₹ 24, 000. D) ₹ 41, 000. Show Answer Correct Answer: D) ₹ 41, 000. ← 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