This quiz works best with JavaScript enabled. Home > Accounting > Accountancy > Accountancy – Quiz 39 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Accountancy Quiz 39 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. A firm earns ₹ 1, 10, 000. The normal rate of return is 10%. The assets of the firm amounted to ₹ 11, 00, 000 and liabilities to ₹ 1, 00, 000. The value of goodwill by capitalisation of Average Profit will be: A) ₹ 2, 00, 000. B) ₹ 10, 000. C) ₹ 5, 000. D) ₹ 1, 00, 000. Show Answer Correct Answer: D) ₹ 1, 00, 000. 2. Q1 When goodwill is not recorded in the books at all on admission of a partners? A) If paid privately. B) If brought in cash. C) If not brought in cash. D) If brought in Kind. Show Answer Correct Answer: A) If paid privately. 3. Gaining ratio A) New old. B) Old new. C) Old old. D) New new. Show Answer Correct Answer: A) New old. 4. WHICH OF THE FOLLOWING IS NOT AN OBJECTIVE OF ACCOUNTING STANDARDS A) TO BRING UNIFORMITY IN ACCOUNTING PRACTICES. B) TO PROVIDE NORMS FOR PREPARATION AND PRESENTATION OF ACCOUNTING STATEMENTS. C) TO MAKE COMPARISON MEANINGFUL. D) TO EARN PROFIT IN BUSINESS. Show Answer Correct Answer: D) TO EARN PROFIT IN BUSINESS. 5. Interest on capital will be paid to the partners if provided for in the partnership deed but only out of: A) Profits. B) Reserve. C) Accumulated Profit. D) Goodwill. Show Answer Correct Answer: A) Profits. 6. Assertion (A):Interest on Partner's capital may be shown in Profit and Loss Account. Reason(R):If Partners treat interest on capital as a charge. A) Both (A) and (R) are true and (R) is the correct explanation of (A). B) Both (A) and (R) are true and (R) is not the correct explanation of (A). C) (A) is true, but (R) is false. D) (A) is false, but (R) is true. Show Answer Correct Answer: A) Both (A) and (R) are true and (R) is the correct explanation of (A). 7. Name the difference between capital employed and non current liabilities A) Shareholders fund. B) Capital employed. C) Total assets. D) Total debts. Show Answer Correct Answer: A) Shareholders fund. 8. Would you prefer a credit card with? A) A higher interest rate. B) A lower interest rate. Show Answer Correct Answer: B) A lower interest rate. 9. Which branch of accounting embraces the preparation of various tax returns and tax planning necessary to minimize the impact of taxes on the firm? A) Auditing. B) Cost accounting. C) Financial accounting. D) Tax accounting. Show Answer Correct Answer: D) Tax accounting. 10. A business transaction affects:(2015) A) At least one account. B) At least two accounts. C) Maximum two accounts. D) Maximum three accounts. Show Answer Correct Answer: B) At least two accounts. 11. A amount of any known liability cannot be determined with accuracy A) A liability should be provided. B) A provision should be made. C) A reserve should be set aside. D) None of these. Show Answer Correct Answer: B) A provision should be made. 12. Types of capital based on their nature are divided into: A) Internal and external capital. B) Personal and social capital. C) Concrete and abstract capital. D) Own capital or loans. Show Answer Correct Answer: C) Concrete and abstract capital. 13. A ..... is an Intangible Assets. A) Goodwill. B) Cash. C) Furniture. D) Stock. Show Answer Correct Answer: A) Goodwill. 14. Debenture issued as collateral security will be debited to A) Bank A/c. B) Debenture A/c. C) Debenture Suspense A/c. D) Profit & Loss A/c. Show Answer Correct Answer: C) Debenture Suspense A/c. 15. Uncalled capital means A) Balance of authorized capital. B) Amount Collected later from public when required. C) Part of Called up capital. D) None of above. Show Answer Correct Answer: B) Amount Collected later from public when required. 16. "T" account is the simplest form of a:(2015) A) Journal. B) Ledger. C) Trial balance. D) Final account. Show Answer Correct Answer: B) Ledger. 17. An example of social capital is A) Private house. B) Machine. C) Copyright. D) Road. Show Answer Correct Answer: D) Road. 18. ABC Ltd. issued 40, 000; 10% Debentures of ₹ 100 each at par for cash payable in full along with the application. Applications were received for 60, 000 debentures. Debentures were allotted and excess application money was refunded.what is amount that is refunded? A) 2000000. B) 20000. C) 200000. D) All of the above. Show Answer Correct Answer: A) 2000000. 19. On revaluation, the increase in the value of assets leads to A) Gain. B) Loss. C) Expense. D) None of these. Show Answer Correct Answer: A) Gain. 20. Debentures interest payable half yearlyamount of interest will be debited to P&L will be A) 24000. B) 12, 000. C) 6000. D) 3000. Show Answer Correct Answer: A) 24000. ← 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