This quiz works best with JavaScript enabled. Home > Accounting > Accountancy > Accountancy – Quiz 18 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Accountancy Quiz 18 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Assets held for continued use in the business and not meant for resale are termed as ..... A) Fixed asset. B) Current Asset. C) Tangible asset. D) Intangible Asset. Show Answer Correct Answer: A) Fixed asset. 2. When an asset is acquired on hire purchase system, the asset account is debited with ..... of the assets in the books of the hire purchaser. A) Hire purchase price. B) Cash price. C) Installment price. D) None of these. Show Answer Correct Answer: B) Cash price. 3. Which of the following is a limitation of accounting A) Assistance to management. B) Replaces memory. C) Unrealistic information. D) Evidence in court. Show Answer Correct Answer: C) Unrealistic information. 4. An example of a transposition error is writing the number 45 when you should have written 54. A) True. B) False. Show Answer Correct Answer: A) True. 5. Internal capital is obtained from A) Company profits. B) Investment. C) Loan. D) From outside the company. Show Answer Correct Answer: A) Company profits. 6. While passing an opening entry, all the assets are ..... while all the liabilities are ..... A) Credited, Debited. B) Credited, Credited. C) Debited, credited. D) None of the options. Show Answer Correct Answer: C) Debited, credited. 7. 4 Purchases book is used to record A) All purchases of goods. B) All credit purchases of assets. C) All credit purchases of good. D) All purchases of assets . Show Answer Correct Answer: C) All credit purchases of good. 8. A firms earn ₹ 1, 20, 000 as its annual profits.The normal rate of profit being 10 %.Assets of the firm are ₹ 14, 40, 000 and liabilities are ₹ 4, 40, 000.Tick the correct option for goodwill by capitalisation method. A) ₹ 4, 00, 000. B) ₹ 2, 80, 000. C) ₹ 2, 00, 000. D) ₹ 3, 60, 000. Show Answer Correct Answer: C) ₹ 2, 00, 000. 9. Share Forfeiture Account appears in a Company's Balance Sheet under the Sub-head ..... A) SHARE CAPITAL. B) RESERVE AND SURPLUS. C) CONTINGENT LIABILITY. D) COMMITMENTS. Show Answer Correct Answer: A) SHARE CAPITAL. 10. Patents and Copyrights fall under the category of: A) Current Assets. B) Liquid Assets. C) Intangible Assets. D) None of Above. Show Answer Correct Answer: C) Intangible Assets. 11. A company issued 5, 000 equity shares of ₹ 100 each at par payable as to: ₹ 40 on the application; ₹ 50 on the allotment and ₹ 10 on call. Applications were received for 8, 000 shares. The allotment was made on pro-rata. How much amount will be received in cash onallotment? A) ₹ 2, 50, 000. B) ₹ 1, 20, 000. C) ₹ 1, 30, 000. D) ₹ 50, 000. Show Answer Correct Answer: C) ₹ 1, 30, 000. 12. WHICH ACCOUNTING CONCEPT STATES THAT EVERY TRANSACTION SHOULD BE RECORDED ON THE BASIS OF EVIDENCE. A) FULL DISCLOSURE. B) VERIFIABLE OBJECTIVE. C) ACCOUNTING PERIOD. D) REVENUE RECOGNITION. Show Answer Correct Answer: B) VERIFIABLE OBJECTIVE. 13. Capital employed in the business is ₹ 2, 00, 000, Normal rate of return(NRR) on capital employed is 15 %.During the year firm earned a profit of ₹ 48, 000.Find the correct option if goodwill is 3 years purchase of super profit. A) ₹ 54, 000. B) ₹ 60, 000. C) ₹ 50, 000. D) ₹ 48, 000. Show Answer Correct Answer: A) ₹ 54, 000. 14. Revenue from operation is not taken as100 in preparing common-size statement of profit and loss. A) True. B) False. Show Answer Correct Answer: B) False. 15. Information needed to prepare an income statement's revenue section is obtained from a work sheet's Account Title column and A) Income Statement Debit Column. B) Income Statement Credit Column. C) Balance Sheet Debit Column. D) Balance Sheet Credit Column. Show Answer Correct Answer: B) Income Statement Credit Column. 16. WHICH ACCOUNTING CONCEPT STATES THAT ASSETS SHOULD BE RECORDED IN BOOKS OF ACCOUNTS AT THEIR COST OF ACQUISITION? A) FULL DISCLOSURE. B) MATCHING CONCEPT. C) COST CONCEPT. D) CONSERVATISM. Show Answer Correct Answer: C) COST CONCEPT. 17. According to which concept Business is distinct from its owner. A) Recognition. B) Conservatism. C) Consistency. D) Business entity. Show Answer Correct Answer: D) Business entity. 18. DEBIT EQUALS TO CREDIT-WHICH CONCEPTS? A) DUAL ASPECTS. B) GOING CONCERN. C) MATCH CONCEPTS. D) MONEY MEASUREMENT CONCEPT. Show Answer Correct Answer: A) DUAL ASPECTS. 19. Debit all expenses and losses is associated with A) Personal account. B) Real account. C) Nominal account. D) Expenses account. Show Answer Correct Answer: C) Nominal account. 20. What is Accountancy? A) Art. B) Science. C) Art and science. D) None of these. Show Answer Correct Answer: C) Art and science. ← 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