This quiz works best with JavaScript enabled. Home > Accounting > Accountancy > Accountancy – Quiz 26 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Accountancy Quiz 26 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Reserve share capital means: A) Part of authorized capital to be called at the beginning. B) Portion of uncalled capital to be called only at liquidation. C) Over subscribed capital. D) Under subscribed capital. Show Answer Correct Answer: B) Portion of uncalled capital to be called only at liquidation. 2. A partnership firm has 50 members. All the partners have agreed to admit Riya and Priya as new partners. Can Riya and Priya be admitted? A) Yes. B) No. Show Answer Correct Answer: B) No. 3. On liquidation of a company, Principal amount of debentures is returned A) First of All. B) Last of All. C) Before Equity Capital. D) After Equity Capital. Show Answer Correct Answer: C) Before Equity Capital. 4. Public enterprise is a business unit established and operated by the ..... A) Shareholders. B) People. C) Employees. D) Government. Show Answer Correct Answer: D) Government. 5. From financial statement analysis the creditors are interested to know A) Liquidity. B) Profit. C) Efficiencies. D) Share capital. Show Answer Correct Answer: A) Liquidity. 6. Three days are added for ascertaining the date of maturity. These are known as days of ..... A) Maturity. B) Grace. C) Payment. D) None of these. Show Answer Correct Answer: B) Grace. 7. Goods taken by Proprietor for personal use are credited to: A) Purchases. B) Drawings. C) Sales. D) None of the above. Show Answer Correct Answer: A) Purchases. 8. Retiring partner's share of goodwill is adjusted through the remaining partners' capital account in ..... A) Old Ratio. B) Gaining Ratio. C) New Ratio. D) Sacrificing Ratio. Show Answer Correct Answer: B) Gaining Ratio. 9. Sakshi Ltd. purchased for immediate cancellation its own 3, 000, 9% debentures of Rs. 100 each redeemable at 5% premium for Rs. 107. amount of loss will be A) 21000. B) 15, 000. C) 6, 000. D) 36, 000. Show Answer Correct Answer: C) 6, 000. 10. Discount or loss on issue of debentures is written off from A) Securities premium reserve. B) Securities premium reserve (if it exists) and thereafter from statement of profit and loss. C) Statement of profit and loss. D) General reserve. Show Answer Correct Answer: B) Securities premium reserve (if it exists) and thereafter from statement of profit and loss. 11. Long term assets having no physical existence but, possessing a value are called A) Intangible assets. B) Fixed assets. C) Current assets. D) Investments. Show Answer Correct Answer: A) Intangible assets. 12. Gross profit is calculated in A) Balancesheet. B) Profit and loss account. C) Trading account. D) Ledger. Show Answer Correct Answer: C) Trading account. 13. State the need for treatment of goodwill on the admission of a partner A) To compensate the new partner. B) To compensate the old partner for their sacrifice. C) No entry. D) To compensate all partners. Show Answer Correct Answer: B) To compensate the old partner for their sacrifice. 14. In the absence of an agreement, Interest on capital is A) Not allowed. B) Allowed at bank rate. C) Allowed @ 5%. D) 6%. Show Answer Correct Answer: A) Not allowed. 15. Would you prefer a Savings Account with? A) A higher interest rate. B) A lower interest rate. Show Answer Correct Answer: A) A higher interest rate. 16. GAAPs are: A) Generally Accepted Accounting Policies. B) Generally Accepted Accounting Principles. C) Generally Accepted Accounting Provisions. D) None of these . Show Answer Correct Answer: B) Generally Accepted Accounting Principles. 17. X, Y and Z were partners in a firm sharing profits in the ratio of 3:2:1. X retired and the new profit sharing ratio between Yand Z will be 5:4. On Xs retirement the goodwill of the firm was valued at ₹ 54, 000. Journal entry will be: A) Y's Capital A/c Dr. 12, 000 Z's Capital A/c Dr. 15, 000 To X's Capital A/c 27, 000. B) Y's Capital A/c Dr. 24, 000 Z's Capital A/c Dr. 30, 000 To X's Capital A/c 54, 000. C) Y's Capital A/c Dr. 15, 000 Z's Capital A/c Dr. 12, 000 To X's Capital A/c 27, 000. D) X's Capital A/c Dr. 27, 000 To Y's Capital A/c 12, 000 To Z's Capital A/c 15, 000. Show Answer Correct Answer: A) Y's Capital A/c Dr. 12, 000 Z's Capital A/c Dr. 15, 000 To X's Capital A/c 27, 000. 18. ACCOUNTING RECORDS A) QUALITATIVE ASPECTS ONLY. B) QUANTITATIVE ASPECTS ONLY. C) BOTH QUALITATIVE AND QUANTITATIVE. D) NEITHER QUALITATIVE NOR QUANTITATIVE. Show Answer Correct Answer: B) QUANTITATIVE ASPECTS ONLY. 19. GAAP stands for A) Generally applicable Accounting Principles. B) Generally Assumption Accounting Principles. C) Generally Accepted Accounting Principals. D) Generally Accepted Accounting Principles. Show Answer Correct Answer: D) Generally Accepted Accounting Principles. 20. Revised indian company act ..... A) 2000. B) 2011. C) 2013. D) None of these. Show Answer Correct Answer: C) 2013. ← 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