This quiz works best with JavaScript enabled. Home > Accounting > Accountancy > Accountancy – Quiz 40 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Accountancy Quiz 40 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. A Sole proprietor concern is free from regulation by A) Indian Contract Act. B) Government. C) Private Indian. D) Indian Law. Show Answer Correct Answer: B) Government. 2. The amount of goodwill is withdrawn by old partners A) New partners capital a/c To bank. B) Old partners capital a/c To bank. C) Bank To old partner. D) Bank To new partners. Show Answer Correct Answer: B) Old partners capital a/c To bank. 3. Balance of partner's current accounts are: A) Debit balance. B) Credit balance. C) Debit & create Balance. D) Either debit balance nor credit balance. Show Answer Correct Answer: C) Debit & create Balance. 4. What will always be the balance of partners' current accounts? A) A. Dr.(Debit) Balance. B) B. Cr.(Deposit) Balance. C) S. either of both. D) The. none of these. Show Answer Correct Answer: C) S. either of both. 5. By virtue of Section 464 of the Companies Act, 2013 the Central Government is empowered to prescribe maximum number of partners in a firm but the number of partners cannot be more than ..... A) 50. B) 100. C) 20. D) 10. Show Answer Correct Answer: B) 100. 6. Assertion:Accounting helps in the identification of the strength and weakness of the business.Reason:Accounting records all the business transactions that can be expressed in terms of money A) Both A and R are true and R is the correct explanation of A. B) Both A and R are true but 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: B) Both A and R are true but R is not the correct explanation of A. 7. A, B and C are partners in 3:4:2. B wants to retire from the firm. The profit on revaluation on that date was ₹ 36, 000. New ratio of A and C is 5:3. Profit on revaluation will be distributed as: A) A ₹ 16, 000; B ₹ 12, 000; C ₹ 8, 000. B) A ₹ 22, 500; C ₹ 13, 500. C) A ₹ 12, 000; B ₹ 16, 000; C ₹ 8, 000. D) A ₹ 23, 625; C ₹ 12, 375. Show Answer Correct Answer: C) A ₹ 12, 000; B ₹ 16, 000; C ₹ 8, 000. 8. The written agreement signed by the partners entailing all terms and conditions of partnership is called A) Partnership contract. B) Partnership agreement. C) Partnership document. D) Partnership deed. Show Answer Correct Answer: D) Partnership deed. 9. Which of the following is not an internal user? A) Employees. B) Management. C) Owners. D) Creditors. Show Answer Correct Answer: D) Creditors. 10. On the basis of retention, records may be classified into ..... types. A) Two. B) Three. C) Four. D) Five. Show Answer Correct Answer: C) Four. 11. Information needed to prepare a balance sheet liabilities section is obtained from a work sheet's Account Title column and A) Income statement debit column. B) Income statement credit column. C) Balance sheet debit column. D) Balance sheet credit column. Show Answer Correct Answer: D) Balance sheet credit column. 12. In GAAP, the accounting principles that can be implemented without much complexity or cost is- A) Relevance. B) Objectivity. C) Feasibility. D) None of the above. Show Answer Correct Answer: C) Feasibility. 13. Subscription received in cash during the year amounted to Rs 60, 000. Subscription received in advance for next year was Rs 3, 000 and received in advance during previous year was Rs 2, 000. Subscription in arrear at the end of current year was Rs 5, 400. The amount credited to Income and Expenditure Account will be: A) Rs 53, 600. B) Rs 66, 400. C) Rs 56, 600. D) Rs 64, 400. Show Answer Correct Answer: D) Rs 64, 400. 14. Assertion:Goodwill is a tangible fixed asset.Reason:Tangible fixed assets can be touched and felt. A) Both A and R are true and R is the correct explanation of A. B) Both A and R are true but 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: D) A is false but R is true. 15. Salary paid to wasim should be debited to:(2017) A) Wasim account. B) Cash account. C) Salary account. D) Bank account. Show Answer Correct Answer: C) Salary account. 16. Financial analysis helps an analyst to arrive at a decision. A) True. B) False. Show Answer Correct Answer: A) True. 17. The profit or less on revaluation of assets and liabilities is transferred to the capital account of A) The old partners. B) The new partner. C) All the partners. D) The sacrificing ratio. Show Answer Correct Answer: A) The old partners. 18. Co-operative society is a voluntary association of minimum ..... members A) Twenty-Five. B) Twenty. C) Thirty-Two. D) Twenty-Two. Show Answer Correct Answer: A) Twenty-Five. 19. The process of transferring the transaction recorded in the journal to respective accounts opened in Ledger is- A) Journalising. B) Posting. C) Balancing. D) Position Statement. Show Answer Correct Answer: B) Posting. 20. Sacrifice the system A) New old. B) Old new. C) New new. D) Old old. Show Answer Correct Answer: B) Old new. ← 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