This quiz works best with JavaScript enabled. Home > Accounting > Accountancy > Accountancy – Quiz 41 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Accountancy Quiz 41 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which of the following items can not be recorded in the P & L appropriation a/c A) IOC. B) IOD. C) Rent paid to partners. D) Partner's salary. Show Answer Correct Answer: C) Rent paid to partners. 2. In the absence of an agreement, int. On capital is A) Not allowed. B) Allowed at bank rate. C) Allowed @ 5%. D) 6%. Show Answer Correct Answer: A) Not allowed. 3. Where two aspects of a transaction are posted in the Cash Book, such an entry is called. A) Double Entry. B) Debit Entry. C) Credit Entry. D) Contra Entry. Show Answer Correct Answer: D) Contra Entry. 4. Partner withdraws regularly at the middle of every month int calculated on A) 5.5 months. B) 6 months. C) 12 month. D) 6.5 month. Show Answer Correct Answer: B) 6 months. 5. "Accounting is the art of recording classifying and summarising in a significant manner and in terms of money transactions and events which are in part at least of a financial character and interpreting the results thereof."This definition of accounting is given by: A) Indian Institute of Chartered Accountants. B) American accounting Association. C) American institute of certified public accountants. D) International Financial regulation system. Show Answer Correct Answer: C) American institute of certified public accountants. 6. Insurance is the system that takes responsibility of ..... to trading concerns for the value of goods insured. A) Production. B) Exchange. C) Return. D) Compensation. Show Answer Correct Answer: D) Compensation. 7. ..... is the sequence of steps involved in the accounting process A) Journal. B) Accounting cycle. C) Ledger. D) Posting. Show Answer Correct Answer: B) Accounting cycle. 8. Every journal entry requires a posting to at least two accounts. A) True. B) False. Show Answer Correct Answer: A) True. 9. The debts which are to be repaid within a short period of time are known as A) Current Liabilities. B) Fixed Liabilities. C) Contingent Liabilities. D) All of the above. Show Answer Correct Answer: A) Current Liabilities. 10. Cash paid to Nadeem will affect:(2015) A) Cash and Owner's Equity. B) Cash and Creditor. C) Cash and Debtor. D) Cash and Goods. Show Answer Correct Answer: B) Cash and Creditor. 11. What is meant by partnership deed? A) A. Terms of purchase and sale of business. B) B. Terms and conditions of operation of partnership business. C) S. Rules regarding dissolution of partnership. D) The. none of these. Show Answer Correct Answer: B) B. Terms and conditions of operation of partnership business. 12. Which of the following transactions is always recorded in the partner's capital account irrespective of whether the partners capitals are fixed or fluctuating? A) Interest on partner's loan. B) Additional capital introduced by a partner. C) Permanent withdrawal of capital by a partner. D) Both (b) and (c). Show Answer Correct Answer: D) Both (b) and (c). 13. The long term assets that have no physical existence but are rights that have value is known as: A) Fixed Assets. B) Current Assets. C) Intangible Assets. D) Investments. Show Answer Correct Answer: C) Intangible Assets. 14. The financial obligation of an enterprise other than owner's fund is A) Liabilities. B) Assets. C) Capital. D) Drawings. Show Answer Correct Answer: A) Liabilities. 15. Gaining ratio is calculated at the time of A) Admission of a partner. B) Retirement of a Partner. C) Dissolution of a partnership firm. D) (d) Both (a) and (c). Show Answer Correct Answer: B) Retirement of a Partner. 16. Cash purchases of goods from Anjila should be debited to ..... A) Anju's A/c. B) Cash A/c. C) Purchase A/c. D) Goods A/c. Show Answer Correct Answer: C) Purchase A/c. 17. Main object of preparing a Journal is: A) To ascertain the financial position of the business. B) To journalise the cash transactions. C) To make posting in the ledger. D) To record the business transactions first of all. Show Answer Correct Answer: D) To record the business transactions first of all. 18. Paid Rent results in A) Increase in cash & capital. B) Decrease in cash & capital. C) Increase in cash & Decrease in capital. D) No Effect. Show Answer Correct Answer: B) Decrease in cash & capital. 19. Mr. X purchased goods worth Rs. 800, 000 availing 10% trade discount, the seller had promised to give him a 15% if he pays the whole amount within 14 days, on the 7th day he pays 50% of the amount by cheque? By what amount will Mr. X's Bank A/c be Credited? A) 306000. B) 360000. C) 720000. D) 800000. Show Answer Correct Answer: B) 360000. 20. A, B and C share profits and Losses in the ratio, of 3:2:1. D is admitted for 1/6th share which he gets from A. New ratio will be: A) 2:2:1:1. B) 2:1:2:1. C) 1:1:2:2. D) 2:2:1:3. Show Answer Correct Answer: A) 2:2:1:1. ← 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