This quiz works best with JavaScript enabled. Home > Accounting > Accountancy > Accountancy – Quiz 5 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Accountancy Quiz 5 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Shares Application &Allotment A/c is a:- A) Personal. B) Real. C) Nominal. D) Artificial A/C. Show Answer Correct Answer: A) Personal. 2. Purchasing of goods from foreign countries for resale is known as ..... A) Import. B) Export. C) Enterprise. D) All of above. Show Answer Correct Answer: C) Enterprise. 3. Minimum subscription for issue of share ..... A) 90%. B) 10%. C) 60%. D) 80%. Show Answer Correct Answer: A) 90%. 4. A, a creditor for Rs.25, 000 accepted a plant at Rs.18, 000 in settlement of his claim, which of the following statement is correct- A) 25, 000 shall be debited to creditors a/c. B) 25, 000 shall be credited to P&M a/c. C) No entry shall be passed. D) 7, 000 shall be debited to realization a/c & 7, 000 shall be credited to cash a/c. Show Answer Correct Answer: D) 7, 000 shall be debited to realization a/c & 7, 000 shall be credited to cash a/c. 5. WHERE ARE BILLS OF EXCHANGE USED? A) Associations. B) Tourism. C) International trade. D) None of above. Show Answer Correct Answer: C) International trade. 6. The basic function of Financial accounting A) Record all business transactions. B) Interpret financial data. C) Assist the management. D) None of these. Show Answer Correct Answer: A) Record all business transactions. 7. Which of the following equation is correct ..... A) Assets= Liabilities-Capital. B) Liabilities= Assets-Capital. C) Capital= Assets + Liabilities. D) Assets= Capital-Liabilities. Show Answer Correct Answer: B) Liabilities= Assets-Capital. 8. Nisha paid Realiastion Expenses of Rs.10, 000 out of her private funds, who was to get a remuneration of Rs.8, 000 for completing dissolution process and was responsible to bear all the realisation expenses. Choose the correct option: A) Nisha's Capital Account will be Debited by Rs.18, 000. B) Nisha's Capital Account will be Credited by Rs.18, 000. C) Nisha's Capital Account will be Debited by Rs.8, 000. D) Nisha's Capital Account will be Credited by Rs.8, 000. Show Answer Correct Answer: D) Nisha's Capital Account will be Credited by Rs.8, 000. 9. ..... refers to choosing a desirable course of action from alternative courses of action A) Control. B) Planning. C) Decision. D) Forecasting. Show Answer Correct Answer: C) Decision. 10. How goodwill is recorded on the retirement of a partner? A) Goodwill A/c Dr. To Retiring Partner's Capital A/c (with his share). B) Remaining Partner's Capital A/cs Dr. (In Gaining Ratio) To Retiring Partner's Capital A/c (with his share of goodwill). C) Goodwill A/c Dr. To All Partner's Capital A/cs (In Old Ratio). D) Remaining Partner's Capital A/cs Dr. (In New Ratio) To Retiring Partner's Capital A/c (with his share of goodwill). Show Answer Correct Answer: B) Remaining Partner's Capital A/cs Dr. (In Gaining Ratio) To Retiring Partner's Capital A/c (with his share of goodwill). 11. The portion of the capital which can be called-up only on the winding up of the company is called: A) Authorised capital. B) Uncalled capital. C) Reserve capital. D) Issued capital. Show Answer Correct Answer: C) Reserve capital. 12. Ravi and Mukesh are sharing profits in the ratio of 7:3. They admit Ashok for 3/7th share in the firm which he takes 2/7th from Ravi and 1/7th from Mukesh. Calculate new profit-sharing ratio. A) 14:6:15. B) 49:21:30. C) 7:3:3. D) 29:11:30. Show Answer Correct Answer: D) 29:11:30. 13. Selling an asset would be an example of A) Cash inflow. B) Cash outflow. Show Answer Correct Answer: A) Cash inflow. 14. Nature of goodwill A) Tangible. B) Intangible. C) Fixed assets. D) None. Show Answer Correct Answer: B) Intangible. 15. Partnership act passed in the year A) 1932. B) 1946. C) 1947. D) 1955. Show Answer Correct Answer: A) 1932. 16. Suppose You and your friend start a business in partnership. But you don't know anything about the share of profits or how will the profits be divided actually. You ask your accountant friend for an advice. He tells you to prepare a document. what's the document? A) Business document. B) Business plan. C) Partnership deed. D) Partnership document. Show Answer Correct Answer: C) Partnership deed. 17. A joint stock company is: A) An artificial legal person. B) Natural person. C) A general person. D) None of these. Show Answer Correct Answer: A) An artificial legal person. 18. Which account should be debited to purchase furniture for the domestic use of the owner? (2019) A) Purchases account. B) Drawings account. C) Proprietor's Personal account. D) Furniture account. Show Answer Correct Answer: B) Drawings account. 19. Which of the following is not a revenue receipt A) Donations for tournament. B) Government grants. C) Subscriptions. D) Entrance fees. Show Answer Correct Answer: A) Donations for tournament. 20. Very important records are kept up the ..... of the organization A) Functioning. B) Temporary Time. C) Two Years. D) Five Years. Show Answer Correct Answer: A) Functioning. ← PreviousNext →Related QuizzesAccounting QuizzesAccountancy Quiz 1Accountancy Quiz 2Accountancy Quiz 3Accountancy Quiz 4Accountancy Quiz 6Accountancy Quiz 7Accountancy Quiz 8Accountancy Quiz 9Accountancy Quiz 10 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books