This quiz works best with JavaScript enabled. Home > Accounting > Accountancy > Accountancy – Quiz 23 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Accountancy Quiz 23 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Ratan Ltd. forfeited 5, 000 shares of ' 10 each on which application money of ' 3 was received. Out of these 2, 500 shares were reissued as fully paid-up and ' 5, 000 has been transferred to Capital Reserve. Calculate the rate at which these shares were reissued A) ' 10 per share. B) ' 9 per share. C) ' 11 per Share. D) ' 8 per share. Show Answer Correct Answer: B) ' 9 per share. 2. Paid cash for supplies. A) Cash (DR) Supplies (CR). B) Supplies (DR) Cash (CR). C) Supplies (DR) Accounts Payable(CR). D) They are both debits. Show Answer Correct Answer: B) Supplies (DR) Cash (CR). 3. Which branch of accounting deals with the calculate the profit or loss of a business during a period and to provide an accurate picture of the financial position of the business as on a particular date to investors or banks? A) Auditing. B) Cost accounting. C) Financial Accounting. D) Tax accounting. Show Answer Correct Answer: C) Financial Accounting. 4. Accounting furnishes data on A) Income and cost for the managers. B) Financial conditions of the institutions. C) Company's tax liability for a particular year. D) All of the above. Show Answer Correct Answer: D) All of the above. 5. IN A COMPANY'S BALANCE SHEET ..... APPEARS UNDER THE HEAD 'NON-CURRENT ASSETS'. A) GOODWILL. B) PATENTS. C) VEHICLES. D) ALL THE ABOVE. Show Answer Correct Answer: D) ALL THE ABOVE. 6. Which is the last step of accounting as a process of information? A) Recording the transaction. B) Communication of information. C) Preparation of financial statements. D) Analysis and interpretation of information. Show Answer Correct Answer: B) Communication of information. 7. A(n) ..... cheque can be transferred by endorsement and delivery 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. 8. Sole proprietorship business owner has A) Restricted Liability. B) No Liability. C) Unlimited Liability. D) Limited Liability. Show Answer Correct Answer: C) Unlimited Liability. 9. Authorised capital is shown in the notes to accounts on share capital A) True. B) False. Show Answer Correct Answer: A) True. 10. Salary due to Ram will be credited to A) Ram Account. B) Outstanding Salary A/c. Show Answer Correct Answer: B) Outstanding Salary A/c. 11. Which of the following is a liability? A) Machinery. B) Creditors for goods. C) Motor vehicles. D) Cash at bank. Show Answer Correct Answer: B) Creditors for goods. 12. If the date of drawings is not given average period is taken for A) 8 months. B) 7 Months. C) 6 months. D) 9 month. Show Answer Correct Answer: C) 6 months. 13. The amount invested into the business by the owner is called; (2019) A) Cash account. B) Real account. C) Nominal account. D) Capital account. Show Answer Correct Answer: D) Capital account. 14. X sold goods of Rs. 100 at a trade discount of 20% and received 50% cash, giving 10% cash discount, how much cash will he earn? A) 36. B) 72. C) 80. D) 40. Show Answer Correct Answer: A) 36. 15. The process of establishing the relationship between various items or group of items taken from Income Statement or Balance Sheet or both is known as A) Analyzing. B) Interpreting. C) Recording. D) Classifying. Show Answer Correct Answer: A) Analyzing. 16. What is the purpose of preparing profit and loss statement? A) To calculate gross profit. B) To compute closing capital. C) To calculate net profit/ (loss). D) To calculate cost of sales. Show Answer Correct Answer: C) To calculate net profit/ (loss). 17. Complete the following statement:When there is neither Partnership Deed nor express agreement or Partnership Deed exists but it is silent on allowing remuneration to partners, the provisions of the ..... would be applicable. A) Indian Partnership Act, 1932. B) Indian Companies Act, 1956. C) Indian Companies Act, 2013. D) None of above. Show Answer Correct Answer: A) Indian Partnership Act, 1932. 18. Accounting records only ..... transactions A) Business. B) Financial. C) Both a and b. D) None of the above. Show Answer Correct Answer: C) Both a and b. 19. When the amount of goodwill pay privately A) No entry. B) 2 entry. C) 3 entry. D) 4 entry. Show Answer Correct Answer: A) No entry. 20. Cash, goods or assets invested by the proprietor in the business for earning profit is called- A) Profit. B) Capital. C) Fixed assets. D) None of these. Show Answer Correct Answer: B) Capital. ← 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