This quiz works best with JavaScript enabled. Home > Accounting > Accountancy > Accountancy – Quiz 38 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Accountancy Quiz 38 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. The financial statement that reports income/loss along with expenses. A) Balance sheet. B) Income statement. C) Owner's equity statement. D) Work sheet. Show Answer Correct Answer: B) Income statement. 2. What is L.F. in cash book? A) Latest forward. B) Ledger file. C) Ledger folio. D) Latest file. E) Last forward. Show Answer Correct Answer: A) Latest forward. 3. An employee dismissed from his job is an events which represent business transaction. A) True. B) False. Show Answer Correct Answer: B) False. 4. A Person to whom goods is sold on credit is called A) Seller. B) Debtor. C) Creditor. D) Liability. Show Answer Correct Answer: B) Debtor. 5. A decrease in the balance of Accounts Receivable. A) Operating. B) Investing. C) Financing. D) Supplemental. Show Answer Correct Answer: A) Operating. 6. The excess of assets over liabilities is A) Loss. B) Cash. C) Capital. D) Profit. Show Answer Correct Answer: C) Capital. 7. Debentures redeemable after 10 years from the date of issue are shown as A) Long-term borrowings. B) Other long-term liabilities. C) Short-term borrowings. D) Other short-term liabilities. Show Answer Correct Answer: A) Long-term borrowings. 8. Is revaluation profit transferred on admission of partner? A) A. In the capital account of all the partners. B) B. In the capital account of the new partner. C) S. In the capital account of old partners. D) The. in profit and loss account. Show Answer Correct Answer: C) S. In the capital account of old partners. 9. A, B and C are partners sharing profits in the ratio 2:2:1.C retired. The new profit sharing ratio between A and B will be: A) 2:1. B) 1:1. C) 3:1. D) None of the above. Show Answer Correct Answer: B) 1:1. 10. Financial position of a business is ascertained on the basis of A) Journal. B) Trial balance. C) Balance Sheet. D) Ledger. Show Answer Correct Answer: C) Balance Sheet. 11. The area of accounting which focuses on reporting information to internal users. A) Financial Accounting. B) Payroll Accounting. C) Managerial Accounting. D) Accounts Payable Accounting. Show Answer Correct Answer: C) Managerial Accounting. 12. Which of the following statement is false? A) At maturity, debenture holders get back their money. B) Debentures can be forfeited for non-payment of call money. C) In Company's Balance Sheet, debentures are shown under the head Long term borrowings. D) Interest on Debentures is a charge against profit. Show Answer Correct Answer: B) Debentures can be forfeited for non-payment of call money. 13. Rs. 5, 000 received from Mohan whose account was written off as bad in the previous year should be credited to: A) Mohan's A/c. B) Bad debts A/c. C) Bad debts recovered A/c. D) None. Show Answer Correct Answer: C) Bad debts recovered A/c. 14. Value of fixed assets will be recorded in A) Balancdesheet liablity. B) Balancesheet assets. C) Profit and loss account. D) Trading account. Show Answer Correct Answer: B) Balancesheet assets. 15. Double entry system means A) Twice recorded. B) Once in ledger once in journal. C) Recording of both aspects of transaction. D) None of these. Show Answer Correct Answer: C) Recording of both aspects of transaction. 16. On retirement of a partner, the remaining partners compensate A) Retiring partner only. B) Remaining partners only who have sacrificed. C) Retiring partner as well as remaining partner who have sacrificed. D) None of the above. Show Answer Correct Answer: C) Retiring partner as well as remaining partner who have sacrificed. 17. Items or events having insignificant economic effect or not being relevant to the user's need not be disclosed in A) Materiality principle. B) Full disclosure principle. C) Accrual principle. D) Conservatism principle. Show Answer Correct Answer: A) Materiality principle. 18. Which is not a section on the income statement? A) Revenue. B) Expenses. C) Owner's Equity. D) Net Income/Net Loss. Show Answer Correct Answer: C) Owner's Equity. 19. From the following information calculate proprietary ratio:share capital Rs 5, 00, 000, non current assets Rs 22, 00, 000, reserves and surplus Rs 3, 00, 000, current assets Rs 10, 00, 000. A) 100%. B) 70%. C) 40%. D) 25%. Show Answer Correct Answer: D) 25%. 20. ALL ASSETS INCLUDING CASH ARE TRANSFERRED TO THE REALIZATION ACCOUNT A) TRUE. B) FALSE. Show Answer Correct Answer: B) FALSE. ← 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