This quiz works best with JavaScript enabled. Home > Accounting > Accountancy > Accountancy – Quiz 7 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Accountancy Quiz 7 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which of the following account with normal balance is shown at the debit side of a trial balance? A) Creditors Account. B) Sales A/c. C) Rent Income Account. D) Cash Account. Show Answer Correct Answer: D) Cash Account. 2. Bank reconciliation statement is prepared? A) At the end of each week. B) At the end of each month. C) At the end of each accounting year. D) Whenever a bank statement is recieved. Show Answer Correct Answer: D) Whenever a bank statement is recieved. 3. Anil Purchased 1000 gel pens @50 each less trade discount of 20%. Purchases account will be debited by: A) Rs:50, 000. B) Rs:40, 000. C) Rs:45, 000. D) Rs:60, 000. Show Answer Correct Answer: B) Rs:40, 000. 4. Received Rs 4, 900 from Garima in full settlement of Rs 5, 000. Posting of Rs 100 will be made to the: A) Debit side of Garima's A/c. B) Credit side of Garima's A/c. C) Debit side of Discount A/c. D) Credit side of Discount A/c. Show Answer Correct Answer: C) Debit side of Discount A/c. 5. The single column cash book records all ..... transactions of the business A) Cash. B) Bank. C) Cash and bank both. D) Any of cash or bank. E) Savings bank. Show Answer Correct Answer: A) Cash. 6. In case of special crossing and the payment can be made only to the ..... whose name has been written between the two lines A) Person. B) Bank. C) Bank and person. D) None of them. E) None of them. Show Answer Correct Answer: A) Person. 7. The persons to whom money is owing by the firm are termed as ..... A) Debtors. B) Creditors. C) Business men. D) Assets. Show Answer Correct Answer: B) Creditors. 8. Purchasing a building A) Operating. B) Investing. C) Financing. D) None of above. Show Answer Correct Answer: B) Investing. 9. Riti and Smriti are friends. They have just completed their class 10 boards. They're planning to start a business in partnership. Can they do so? A) Yes. B) No. Show Answer Correct Answer: B) No. 10. All the agreed terms, conditions and procedure of partnership business is written in ..... A) Prospectus. B) Statement. C) Articles. D) Partnership Deed. Show Answer Correct Answer: D) Partnership Deed. 11. Book-keeping and accounting A) Means same and are used interchangeably. B) Does not mean the same and are not used interchangeably. C) Means both (a) and (b). D) None of the above. Show Answer Correct Answer: B) Does not mean the same and are not used interchangeably. 12. When recording the receipt of cash from a customer who had previously purchased goods on credit, which accounts are affected in the ledger? A) Debit:Accounts Receivable, Credit:Sales. B) Debit:Cash, Credit:Accounts Receivable. C) Debit:Sales, Credit:Cash. D) Debit:Cash, Credit:Revenue. Show Answer Correct Answer: B) Debit:Cash, Credit:Accounts Receivable. 13. Credit purchase of furniture shall be recorded in- A) Purchase book. B) Journal book. C) Cash-book. D) None of these. Show Answer Correct Answer: B) Journal book. 14. According to Profit and Loss Account, the net profit for the year is ₹ 4, 20, 000. Salary of a partner is ₹ 5, 000 per month and the commission of another partner is ₹ 10, 000. The interest on drawings of partners is ₹ 4, 000. The net profit as per Profit and Loss A) 354000. B) 346000. C) 409000. D) 401000. Show Answer Correct Answer: A) 354000. 15. FINANCIAL STATEMENT COMPRISES OF A) INCOME STATEMENT. B) POSITION STATEMENT. C) BOTH. D) NONE. Show Answer Correct Answer: C) BOTH. 16. Profit on redemption of debentures is transferred to which account. A) Reserve capital A/c. B) Capital Reserve A/c. C) Debenture Redemption Reserve A/c. D) DRI A/c. Show Answer Correct Answer: B) Capital Reserve A/c. 17. A liability is ..... A) Obligation of a business as a result of a past transaction. B) Something a business has to pay because of a past event. C) Current obligation of a business as a result of a past transaction. D) None of above. Show Answer Correct Answer: C) Current obligation of a business as a result of a past transaction. 18. Accounting starts ..... A) Where Accountancy ends. B) Where book keeping ends. C) Where financial statements ends. D) Where analysis of financial statement ends. Show Answer Correct Answer: B) Where book keeping ends. 19. Accounting is required in A) Business activities. B) Non-Business activities. C) Non-Governmental Organisation. D) All of the above. Show Answer Correct Answer: D) All of the above. 20. Attributes of Accounting A) Identification of financial transactions. B) Recording. C) Both A and. B. D) None of the above. Show Answer Correct Answer: C) Both A and. 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