This quiz works best with JavaScript enabled. Home > Accounting > Accountancy > Accountancy – Quiz 42 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Accountancy Quiz 42 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Super profit = A) Average profit-Normal profit. B) Normal profit-actual profit. C) Average Profit-capital employed. D) None of the above. Show Answer Correct Answer: A) Average profit-Normal profit. 2. Maintenance of books of accounting which is often routine and clerical in nature- A) Accountancy. B) Financial Management. C) Accounting. D) Book-Keeping. Show Answer Correct Answer: D) Book-Keeping. 3. The reason for the end of the sole proprietorship can be A) Insolvency. B) Insanity. C) Death. D) All the above. Show Answer Correct Answer: D) All the above. 4. ASSETS WHICH CAN BE CONVERTED INTO CASH WITHIN A PERIOD OF ONE YEAR ARE CALLED? A) CURRENT ASSETS. B) FIXED ASSETS. C) INTANGIBLE ASSET. D) NON CURRENT ASSETS. Show Answer Correct Answer: A) CURRENT ASSETS. 5. Goodwill which is acquuired by making payment A) Inherited goodwill. B) Purchased goodwill. C) None of the above. D) None of above. Show Answer Correct Answer: B) Purchased goodwill. 6. When preparing a balance sheet, the amount of owner's capital is obtained from A) The general ledger. B) The work sheet's balance sheet credit column. C) The income statement. D) None of these. Show Answer Correct Answer: D) None of these. 7. Nature of revaluation account is A) Personal account. B) Nominal account. C) Real Account. D) None of these. Show Answer Correct Answer: B) Nominal account. 8. In three column Cash Book, when does contra entry occurs? A) Withdrawal of cash from bank. B) Payment to creditors. C) Withdrawal of cash from bank for personal use. D) All of the above. Show Answer Correct Answer: A) Withdrawal of cash from bank. 9. ..... Refers to those liabilities which are to be paid normally with in one year. A) Current liability. B) Non Current Liability. C) Loan. D) Borrowing. Show Answer Correct Answer: A) Current liability. 10. Which As is changed from fixed assets to property plant and Equipment A) 10. B) 26. C) 4. D) 6. Show Answer Correct Answer: A) 10. 11. The Balance on the debit side of the bank column in Cash Book indicates A) Total amount withdrawn from the Bank. B) Total amount deposited in the Bank. C) Cash at Bank. D) Bank Overdraft. Show Answer Correct Answer: D) Bank Overdraft. 12. If the new partner brings his share of goodwill in cash, it will be shared by old partners in A) Sacrificing Ratio. B) Old profit sharing ratio. C) New profit sharing ratio. D) Capital Ratio. Show Answer Correct Answer: A) Sacrificing Ratio. 13. A & B were partners in a firm sharing profits & losses in the ratio of 3:1. With effect from Jan.1, 2019 they agreed to share profit or loss in the ratio of 2:1. Due to change in profit sharing ratio, B's gain or sacrifice will be A) Gain 1/12. B) Sacrifice 1/12. C) Gain 1/3. D) Sacrifice 1/3. Show Answer Correct Answer: A) Gain 1/12. 14. The assets that can be easily converted into cash within a short period, i.e., 1 year or less are known as A) Current assets. B) Fixed assets. C) Intangible assets. D) Investments. Show Answer Correct Answer: A) Current assets. 15. Paid Cash for water bill A) Cash (DR) Water bill (CR). B) Water Bill (CR) Cash (CR). C) Utilities Expense (DR) Cash (CR). D) Both are debits. Show Answer Correct Answer: C) Utilities Expense (DR) Cash (CR). 16. HOW MANY PARTS DOES A BILL OF EXCHANGE? A) 3. B) 4. C) 2. D) None of above. Show Answer Correct Answer: A) 3. 17. The liability of members is only limited to the value of shares held by them. this is ..... A) Liability limited by shares. B) Limited liability. C) Unlimited liability. D) Liability at will. Show Answer Correct Answer: B) Limited liability. 18. Firm incurs loss int. Captial will be provided A) True. B) False. Show Answer Correct Answer: B) False. 19. Ascertain the accounting equation when Mr X started business with cash Rs. 1, 00, 000 A) 1, 00, 000 = 0 + 0. B) 0 = 0 + 1, 00, 000. C) 1, 00, 000 = 0 + 1, 00, 000. D) 1, 00, 000 = 1, 00, 000 + 0. Show Answer Correct Answer: C) 1, 00, 000 = 0 + 1, 00, 000. 20. Capital permanently withdrawn comes in which account A) Capital. B) Current. C) Both. D) None. Show Answer Correct Answer: A) Capital. ← 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