This quiz works best with JavaScript enabled. Home > Accounting > Accountancy > Accountancy – Quiz 27 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Accountancy Quiz 27 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. When new partner brings cash for goodwill, the amount is credited to: A) Realisation Account. B) Cash account. C) Premium for Goodwill Account. D) Revaluation Account. Show Answer Correct Answer: C) Premium for Goodwill Account. 2. Ready-to-use cash included on A) Other property. B) Intangible assets. C) Fixed assets. D) Liquid assets. Show Answer Correct Answer: D) Liquid assets. 3. The interest on capital accounts of partners under fluctuating capital account method is credited to: A) Interest Account. B) Profit and Loss Account. C) Partners' Capital Account. D) Partners' Current Account. Show Answer Correct Answer: C) Partners' Capital Account. 4. WHICH ACCOUNTING CONCEPT REQUIRES THAT ACCOUNTING POLICIES AND METHODS ONCE SELECTED SHOULD BE USED YEAR AFTER YEAR? A) CONSERVATISM. B) PRUDENCE. C) CONSISTENCY. D) BUSINESS ENTITY. Show Answer Correct Answer: C) CONSISTENCY. 5. Which accounts are opened when the capitals are fixed? A) Only Capital Accounts. B) Only Current Accounts. C) Capital Accounts as well as Current Accounts. D) Either Capital Accounts or Current Accounts. Show Answer Correct Answer: C) Capital Accounts as well as Current Accounts. 6. Gaining Ratio is calculated at the retirement or death of a partner and change in profit-sharing ratio. A) True. B) False. Show Answer Correct Answer: A) True. 7. The balance in the profit and loss account is ..... A) Gross profit or gross loss. B) Net profit or net loss. C) Financial position. D) Super profit. Show Answer Correct Answer: B) Net profit or net loss. 8. Postage stamps purchased for ₹ 30 by business. This transaction will be recorded in: A) Purchase book. B) Cash Book. C) Petty Cash Book. D) Journal. Show Answer Correct Answer: C) Petty Cash Book. 9. A, B & C are partners sharing profits of a business in the ratio of 3:2:1 respectively. They admit D who brings in Rs. 60, 000 for his share of goodwill. A, B, C and D decide to share the profits respectively in the ratio of 5:3:2:2. Credit will be given to A) A Rs. 30, 000; B Rs. 18, 000 ; C Rs. 12, 000. B) A Rs. 6, 000; B Rs. 6, 000. C) A Rs. 30, 000; B Rs. 20, 000 ; C Rs. 10, 000. D) A Rs. 30, 000; B Rs. 30, 000. Show Answer Correct Answer: D) A Rs. 30, 000; B Rs. 30, 000. 10. Machinery is A) Fixed assets. B) Current asset. C) Both. D) Fictitious asset. Show Answer Correct Answer: A) Fixed assets. 11. Which section of the partnership act defines partnership as the relation between person who have agreed to share the profit of the business carried on by all or any of them acting for all? A) Section 61. B) Section 130. C) Section 4. D) Section 48. Show Answer Correct Answer: B) Section 130. 12. A and B are partners in a firm, they are entitled to interest on their capitals but the net profit was not sufficient for this interest, then the net profit will be distributed among partners in: A) Agreed ratio. B) Captial ratio. C) Profit sharing ratio. D) Equally. Show Answer Correct Answer: B) Captial ratio. 13. Accrued Commission is a/an ..... A) Income. B) Asset. C) Liability. D) Expense. Show Answer Correct Answer: B) Asset. 14. Comparative analysis is also known as time series analysis. A) True. B) False. Show Answer Correct Answer: A) True. 15. Current Assets do not include: A) Prepaid Expenses. B) Inventory. C) Goodwill. D) Bills Receivable. Show Answer Correct Answer: C) Goodwill. 16. Which of the following items can not be recorded in the Profit & Loss Appropriation Account? A) Interest on Capital. B) Interest on drawings. C) Rent paid to partners. D) Partner's salary. Show Answer Correct Answer: C) Rent paid to partners. 17. The person, firm, or institution who does not pay the price in cash for the goods purchased or the services received is called- A) Creditor. B) Proprietor. C) Debtor. D) None. Show Answer Correct Answer: C) Debtor. 18. Nature of goodwill is A) Intangible asset. B) Fictitious asset. C) Long term liability. D) Current asset. Show Answer Correct Answer: A) Intangible asset. 19. Revaluation account is not prepared to give effect to changed values of assets and liabilities. True/False A) True. B) False. Show Answer Correct Answer: B) False. 20. Accounting rules for partnership are governed by the partnership act of A) 1933. B) 1956. C) 1932. D) 2013. Show Answer Correct Answer: C) 1932. ← 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