This quiz works best with JavaScript enabled. Home > Accounting > Accountancy > Accountancy – Quiz 3 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Accountancy Quiz 3 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. 13 L F means A) Journal page number. B) Last page of ledger. C) Ledger page number. D) All the above. Show Answer Correct Answer: C) Ledger page number. 2. Accounting process starts with ..... A) Identification of financial transaction. B) Posting into ledger. C) Recording in Journal. D) Summarising of financial transactions. Show Answer Correct Answer: A) Identification of financial transaction. 3. Double entry in accounting means there must be ..... entries for every transaction? A) Two. B) Three. C) Six. D) One. Show Answer Correct Answer: A) Two. 4. In the absence of partnerships deed profit will he shared A) Equal ratio. B) Capital ratio. C) Both. D) None of these. Show Answer Correct Answer: A) Equal ratio. 5. The amount of net income calculated on an income statement is correct if A) Debits equal credits. B) It is the same as the balance sheet. C) It is the same as the net income shown on the work sheet. D) None of these. Show Answer Correct Answer: C) It is the same as the net income shown on the work sheet. 6. Financial statements are not comparable. A) False. B) True. Show Answer Correct Answer: A) False. 7. The person to whom the amount are due for goods purchased or service rendered on credit basis- A) Credit purchase. B) Credit sales. C) Trade creditors. D) Trade debtors. Show Answer Correct Answer: C) Trade creditors. 8. Which account is classified as an income? A) Cash. B) Cell phone bill. C) Credit card. D) Babysitting payment. Show Answer Correct Answer: D) Babysitting payment. 9. Which of the following is definition of accounting? A) It's a process of classifying, recording, and summarizing the business transaction in monetary unit, interpretating the data and assist stakeholders in making decision. B) It's a process of recording, classifying, and summarizing the business transaction in monetary unit, interpretating the data and assist stakeholders in making decision. C) It's a process of classifying, recording, and summarizing the business transaction interpreting the data and assist stakeholders in making decision. D) None of above. Show Answer Correct Answer: B) It's a process of recording, classifying, and summarizing the business transaction in monetary unit, interpretating the data and assist stakeholders in making decision. 10. Those Assets which are acquired for the purpose of increasing the earning capacity of the business is called A) Financial assets. B) Current Assets. C) Fixed Assets. D) None of these. Show Answer Correct Answer: C) Fixed Assets. 11. Share can be issued to public at discount A) True. B) False. C) Don't know. D) None of these. Show Answer Correct Answer: B) False. 12. Gross loss is find from which account A) Trading account. B) Profit &Loss account. C) Balance sheet. D) None of these. Show Answer Correct Answer: A) Trading account. 13. X and Y are partners in the ratio of 3:2. Their capitals are ₹ 2, 00, 000 and ₹ 1, 00, 000 respectively. Interest on capitals is allowed @ 8% p.a. Firm incurred a loss of ₹ 60, 000 for the year ended 31st March, 2019. Interest on Capital will be: A) X ₹ 16, 000; Y ₹ 8, 000. B) X ₹ 8, 000; Y ₹ 4, 000. C) X ₹ 14, 400; Y ₹ 9, 600. D) No interest will be allowed. Show Answer Correct Answer: D) No interest will be allowed. 14. What rate interest is payable on the amount remaining unpaid to the executor of deceased partner A) 7%. B) 8%. C) 6%. D) 4%. Show Answer Correct Answer: C) 6%. 15. Specific donation received by not for profit organisation is shown in the A) Credit side of income and Expenditure Account. B) Debit side of income and Expenditure Account. C) Liability side of Balance Sheet. D) As is decided by the management. Show Answer Correct Answer: C) Liability side of Balance Sheet. 16. X, Y & Z are partners in the ratio of 5:4:3. X has given to Z a guarantee of minimum ₹ 10, 000 profit. For the year ending 31st March, 2019, Firm's profit is ₹ 28, 800. X's share in profit will be: A) ₹ 9, 200. B) ₹ 9, 600. C) ₹ 7, 200. D) ₹ 12, 000. Show Answer Correct Answer: A) ₹ 9, 200. 17. Balance of Purchase Consideration is Debited to A) Capital A/c. B) Capital Reserve A/c. C) Goodwill A/c. D) Bank A/c. Show Answer Correct Answer: C) Goodwill A/c. 18. Mohar ltd. forfeited 160 shares of Rs. 10 each on which the holder had paid only the application money of Rs. 2 per share. Out of these, 40 shares were reissued to Gaurav as fully paid up for Rs. 9 per share. The gain on reissue is A) Rs. 320. B) Rs. 160. C) Rs. 40. D) None of these. Show Answer Correct Answer: C) Rs. 40. 19. What does a credit balance in the cash account on the trial balance indicate? A) Cash is Overdrawn. B) Cash is a liability. C) Cash is an asset. D) Cash is an expense. Show Answer Correct Answer: A) Cash is Overdrawn. 20. Accounting Equations means A) A=L+C. B) L=A+C. C) C=L+A. D) DEBIT=CREDIT. Show Answer Correct Answer: A) A=L+C. ← PreviousNext →Related QuizzesAccounting QuizzesAccountancy Quiz 1Accountancy Quiz 2Accountancy Quiz 4Accountancy Quiz 5Accountancy Quiz 6Accountancy Quiz 7Accountancy Quiz 8Accountancy Quiz 9Accountancy Quiz 10 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books