This quiz works best with JavaScript enabled. Home > Accounting > Accountancy > Accountancy – Quiz 2 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Accountancy Quiz 2 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. An owner withdrawing cash from his business for personal use is an events representing business transaction A) True. B) False. Show Answer Correct Answer: A) True. 2. At the time of reconstitution of partnership firm, which of the following adjustment is required? A) Determination of New Profit-sharing Ratio. B) Treatment of Goodwill. C) Revaluation of Assets and Reassessment of Liabilities. D) All of the above. Show Answer Correct Answer: D) All of the above. 3. An increase in the balance in Accounts Payable. A) Operating. B) Investing. C) Financing. D) Supplemental. Show Answer Correct Answer: A) Operating. 4. A registered company is established by the ..... A) Company Act. B) Partnership Act. C) Regulation Act. D) Regional Act. Show Answer Correct Answer: A) Company Act. 5. Manufacturing business houses involve in ..... activities A) Production. B) Distribution. C) Exchange. D) Service. Show Answer Correct Answer: A) Production. 6. The salary paid to a clerk Ramesh should be credited to? A) Salary A/C. B) Ramesh A/C. C) Cash A/C. D) P/L A/C. Show Answer Correct Answer: C) Cash A/C. 7. ..... is the first step in accounting process A) Ledger. B) Journal. C) Trial balance. D) Trading account. Show Answer Correct Answer: B) Journal. 8. The balance in the investment Fluctuation fund after meeting the fall in book value of investment, at the time of admission of partner will transferred to: A) Revaluation Account. B) Capital Account of old Partners. C) General Reserve. D) Capital Account of All Partners. Show Answer Correct Answer: B) Capital Account of old Partners. 9. Closing stock is recorded in trading account and ..... A) Balancesheet liablity side. B) Balancesheet asset side. C) Profit and loss account. D) Trading account debit side. Show Answer Correct Answer: B) Balancesheet asset side. 10. The example of legal record is ..... A) Letter. B) Bill. C) Articles of Association. D) Salary Sheet. Show Answer Correct Answer: C) Articles of Association. 11. The need for valuation of goodwill arises A) When there is a change in the profit sharing ratio. B) When a new partner is admitted. C) When a partner dies. D) All of the above. Show Answer Correct Answer: D) All of the above. 12. Final accounts is the ..... stage of accounting cycle. A) Last. B) First. C) Second. D) None of above. Show Answer Correct Answer: A) Last. 13. As per table F Of Schedule I of Companies Act 2013, the amount to be called up on application or on any call shall not exceed ..... % of total quantum of the issue A) 20%. B) 25%. C) 30%. D) 35%. Show Answer Correct Answer: B) 25%. 14. RECORDING OF TRANSACTIONS IS DONE IN A BOOK CALLED A) LEDGER. B) PURCHASE BOOK. C) JOURNAL. D) SALES BOOK. Show Answer Correct Answer: C) JOURNAL. 15. Balance Sheet provides information about financial position of the enterprise: A) At a point in time. B) Over a period of time. C) For a period of time. D) None of the above. Show Answer Correct Answer: A) At a point in time. 16. Out of the following assets which one is not a Current Asset? A) Debtors. B) Motor Car. C) Bank Balance. D) Prepaid Expenses. Show Answer Correct Answer: B) Motor Car. 17. In dissolution where are the Reserve and accumulated profits transferred A) Partners capital account. B) Partners capital account realisation account. C) Bank account. D) None. Show Answer Correct Answer: A) Partners capital account. 18. X and Y are partners sharing profits in the ratio of 2:1. On 31st March, 2016, their Balance Sheet showed General Reserve of Rs.60, 000. It was decided that in future they will share profits and losses in the ratio of 3:2. Pass necessary Journal entry If they want to show General Reserve in the new Balance Sheet. A) X's Capital A/c Dr. 4, 000 To Y's Capital A/c 4, 000. B) X's Capital A/c Dr. 60, 000 To Y's Capital A/c 60, 000. C) Y's Capital A/c Dr. 4, 000 To X's Capital A/c 4, 000. D) Y's Capital A/c Dr. 60, 000 To X's Capital A/c 60, 000. Show Answer Correct Answer: C) Y's Capital A/c Dr. 4, 000 To X's Capital A/c 4, 000. 19. Which of the following items is shown under the head 'Current Assets' while preparing the Balance Sheet of a company? A) Trade Investment. B) Underwriting Commission. C) Inventories. D) Livestock. Show Answer Correct Answer: C) Inventories. 20. Received commission effects on A) Cash and capital. B) Cash and commission. C) Capital and commission. D) Capital only. Show Answer Correct Answer: A) Cash and capital. ← PreviousNext →Related QuizzesAccounting QuizzesAccountancy Quiz 1Accountancy Quiz 3Accountancy Quiz 4Accountancy Quiz 5Accountancy Quiz 6Accountancy Quiz 7Accountancy Quiz 8Accountancy Quiz 9Accountancy Quiz 10 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books