This quiz works best with JavaScript enabled. Home > Accounting > Accountancy > Accountancy – Quiz 24 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Accountancy Quiz 24 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. When Partners' capital accounts are fixed, which one of the following items will be written in the partner's capital account? A) Partner's Drawings. B) Additional capital introduced by the partner in the firm. C) Loan taken by the partner from the firm. D) Loan advanced by the partner to the firm. Show Answer Correct Answer: B) Additional capital introduced by the partner in the firm. 2. What is the start date for financial year? A) 1st January. B) 1st April. Show Answer Correct Answer: B) 1st April. 3. Which of the following statement is not an objective of accounting? A) To provide information about firms liabilities, assets and capital. B) To provide information on the personal assets and liabilities of the owner of the firm. C) To maintain the records of the business. D) To provide information on the performance of an enterprise. Show Answer Correct Answer: B) To provide information on the personal assets and liabilities of the owner of the firm. 4. Which of the following items cannot be recorded in the profit and loss appropriation account? A) Interest on Capital. B) Interest on drawings. C) Rent paid to partner. D) Partner's salary. Show Answer Correct Answer: C) Rent paid to partner. 5. Industries involve in production of goods from plants and animals are ..... industries A) Manufacturing. B) Extraction. C) Genetic. D) Construction. Show Answer Correct Answer: C) Genetic. 6. How many types of accounts? A) 1. B) 2. C) 3. D) 4. Show Answer Correct Answer: B) 2. 7. WHICH ACCOUNTING CONCEPT REQUIRES THAT STOCK BE RECORDED IN THE BOOKS OF ACCOUNTS AT ITS MARKET VALUE OR COST PRICE WHICH EVER IS LOWER? A) HISTORICAL COST. B) REVENUE RECOGNITION. C) PRUDENCE/ CONSERVATISM. D) CONSISTENCY. Show Answer Correct Answer: C) PRUDENCE/ CONSERVATISM. 8. Classify the type of account for the belowI. Bank-ii. Outstanding salary A) Personal and nominal. B) Personal personal. C) Personal and real. D) None of the above . Show Answer Correct Answer: B) Personal personal. 9. BY WHOM MUST THE BILL OF EXCHANGE BE ACCEPTED IN ORDER TO BE VALIDATED? A) The drawee. B) The payee. C) The drawer. D) None of above. Show Answer Correct Answer: A) The drawee. 10. In case of partnership the act of any partner is: A) Binding on all partners. B) Binding on that partner only. C) Binding on all partners except that particular partner. D) None of the above. Show Answer Correct Answer: C) Binding on all partners except that particular partner. 11. 8 Trial balance is prepared: A) At the end of the year. B) On a particular date. C) For a year. D) None of the above. Show Answer Correct Answer: B) On a particular date. 12. Withdrawal of cash from business by the proprietor is credited to A) Drawing A/c. B) Capital A/c. C) Cash A/c. D) Bank A/c. Show Answer Correct Answer: C) Cash A/c. 13. When the bills of exchange of drawn and accepted for trade purpose it is called ..... A) Accommodation bill. B) Trade bill. Show Answer Correct Answer: B) Trade bill. 14. On dissolution of firm but entry pass for payment of an unrecorded liability A) Cash a/c To realisation. B) Realisation a/c To cash/bank. C) No entry. D) Realisation To partners cap a/c. Show Answer Correct Answer: B) Realisation a/c To cash/bank. 15. What is depreciation? A) An estimate of the fall in value of a fixed asset over time. B) A cash flow caused by buying foxed assets. C) An increase in the value of a currency. D) A cost arising when customers fail to pay their bills. Show Answer Correct Answer: A) An estimate of the fall in value of a fixed asset over time. 16. Investment in Shares & debentures of company which are quoted on a recognized stock exchange are called A) Listing. B) Quoted investment. C) Trading on shares. D) Stock exchange. Show Answer Correct Answer: B) Quoted investment. 17. P and Q are two partners in a firm having capitals of Rs 15000 each.R is admitted for 1/3 rd share for which he has to bring Rs 20000 for his share of capital. The amount of goodwill will be ..... A) 5000. B) 15000. C) 10, 000. D) None of above. Show Answer Correct Answer: C) 10, 000. 18. 'Claims against the Company not acknowledged as debts' is shown under the head ..... A) CURRENT LIABILITIES. B) NON-CURRENT LIABILITIES. C) COMMITMENTS. D) CONTINGENT LIABILITIES. Show Answer Correct Answer: D) CONTINGENT LIABILITIES. 19. 15 Real account deals with A) Individual persons. B) Expenses and losses. C) Assets. D) Incomes and gains . Show Answer Correct Answer: C) Assets. 20. WHICH SYSTEM OF ACCOUNTING SAYS THAT TRANSACTION SHOULD BE RECORDED IN THE BOOKS OF ACCOUNTS WHEN IT IS ENTERED INTO WHETHER CASH RECEIVED OR NOT. A) CASH BASIS. B) ACCRUAL BASIS. C) BOTH CASH AND ACCRUAL BASIS. D) NEITHER CASH NOR ACCRUAL. Show Answer Correct Answer: B) ACCRUAL BASIS. ← 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