This quiz works best with JavaScript enabled. Home > Accounting > Accountancy > Accountancy – Quiz 32 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Accountancy Quiz 32 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Income and Expenditure A/C is prepared in order to ascertain A) Profit or Loss. B) Surplus or Deficit. C) Cash in hand & at Bank. D) Assets & Liabilities. Show Answer Correct Answer: B) Surplus or Deficit. 2. In Partnership business there must be ..... among the partners A) Normal Relation. B) Disputes. C) Friendly. D) Utmost Good Faith. Show Answer Correct Answer: D) Utmost Good Faith. 3. Amount of capital stated in MoA of company as its registered Capital A) Authorised Capital. B) Share Capital. C) Reserve Capital. D) Paid up Capital. Show Answer Correct Answer: A) Authorised Capital. 4. Petty cash may be used to pay A) The expenses relating to postage and conveyance. B) Salary to administrative staff. C) For the purchase of furniture and fixtures. D) For the purchase of raw material. Show Answer Correct Answer: A) The expenses relating to postage and conveyance. 5. A businessman generally opens a ..... account with a bank and maintains related cash book. A) Savings. B) Current. C) Multiple deposit. D) Fixed deposit. E) Premium. Show Answer Correct Answer: A) Savings. 6. A and B are partners sharing profits in ratio of 3:2. A's Capital is Rs. 30, 000 and B's Capital is Rs. 15, 000. They admit C for 1/5thshare of profits. C will bring as his capital A) Rs. 9, 000. B) Rs. 12, 000. C) Rs. 14, 500. D) Rs. 11, 250. Show Answer Correct Answer: D) Rs. 11, 250. 7. While preparing the Balance Sheet of a Company which item is shown under the head 'Long term Borrowings'? A) 6% Debentures. B) Security Premium Reserve. C) Trade Payable. D) None of the above. Show Answer Correct Answer: A) 6% Debentures. 8. Debentures are said to be issued at Discount when A) I.P. = F.V. B) I.P. > F.V. C) I.P. < F.V. D) Any of these. Show Answer Correct Answer: C) I.P. < F.V. 9. Capital of the partners are maintained by: A) Fixed capital method. B) Fluctuating capital method. C) By any two above methods. D) None of these. Show Answer Correct Answer: C) By any two above methods. 10. Generally cash book is made on which basis. A) Weekly. B) Monthly. C) Yearly. D) All of them. E) Any of them. Show Answer Correct Answer: A) Weekly. 11. In the absence of partnership deed, how is profit and loss divided? A) A. capital ratio. B) B. sacrifice ratio. C) S. equal ratio. D) The. in proportion to income. Show Answer Correct Answer: C) S. equal ratio. 12. Straight line method of depreciation is that method under which A) Depreciation is charged at the fixed percentage on the book value of the assets. B) Depreciation is charged at a fixed percentage on the original cost of the assets. C) Depreciation is charged on original cost of asset but the depreciation rate changes. D) None of the above. Show Answer Correct Answer: B) Depreciation is charged at a fixed percentage on the original cost of the assets. 13. X and Y are partners with capital of Rs.50, 000 each. They admit Z as a partner with 1/4th share in the profits of the firm. Z brings in Rs.80, 000 as his share of capital. The Profit and Loss Account showed a credit balance of Rs.40, 000 as on date of admission of Z. The Value of Firm's Goodwill will be A) Rs. 1, 00, 000. B) Rs. 25, 000. C) Nil. D) Rs. 1, 80, 000. Show Answer Correct Answer: A) Rs. 1, 00, 000. 14. The formula for calculating the net income component percentage is A) Net income / total sales. B) Total sales / total expenses. C) Total sales-total expenses / net income. D) None of these. Show Answer Correct Answer: A) Net income / total sales. 15. For getting share in profits, a new partner brings A) Capital. B) Loan. C) Goodwill. D) None of these. Show Answer Correct Answer: C) Goodwill. 16. Which of the following capital is not shown in the company's Balance Sheet ' A) Authorised capital. B) Issued &subscribed capital. C) Called-up and paid up-capital. D) Reserve capital. Show Answer Correct Answer: D) Reserve capital. 17. Which one of the following is not branch of accounting A) Financial accounting. B) Management accounting. C) Human resources accounting. D) None of the above. Show Answer Correct Answer: D) None of the above. 18. When two parallel lines are drawn across the cheque, it is said to be crossed 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. 19. If transaction is totally omitted from the books, it is called? A) A. B) S. C) V. D) AAS. Show Answer Correct Answer: B) S. 20. Expenses which are paid in advance is ..... A) Prepaid Expenses. B) Postpaid Expenses. C) Outstanding Expenses. D) Accrued Expenses. Show Answer Correct Answer: A) Prepaid Expenses. ← 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