This quiz works best with JavaScript enabled. Home > Accounting > Accountancy > Accountancy – Quiz 8 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Accountancy Quiz 8 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Rules of debit for real account is A) Debit the receiver. B) Debit all expenses and losses. C) Debit what comes in. D) Debit the giver. Show Answer Correct Answer: C) Debit what comes in. 2. Unrecorded Asset taken over by a Partner at the time of dissolution of the firm is ..... to his Capital Account. A) Debited. B) Credited. Show Answer Correct Answer: A) Debited. 3. For depositing cash/cheques in the bank account, which form has to be filled? A) Withdrawal slip. B) Debit note. C) Credit note. D) Pay-in-slip. E) Receipt. Show Answer Correct Answer: A) Withdrawal slip. 4. Obligations (amounts owed) are reported on the balance sheet and are referred to as ..... A) Assets. B) Liabilities. C) Equity. D) Debt. Show Answer Correct Answer: B) Liabilities. 5. Which of the following is not an error of principle? A) Purchase of machinery debited to purchase account. B) Sale of old furniture credited to sales account. C) Repairs on the overhauling of existing machinery debited to machinery account. D) Cash recd. from mohan debited to sohan. Show Answer Correct Answer: D) Cash recd. from mohan debited to sohan. 6. On the admission of a new partner A) Old firm is dissolved. B) Old partnership is dissolved. C) Both old partnership and firm are dissolved. D) Neither partnership nor firm is dissolved. Show Answer Correct Answer: B) Old partnership is dissolved. 7. ..... is created out of capital profits. A) Reserve capital. B) Capital reserve. C) Called up capital. D) Subscribed capital. Show Answer Correct Answer: B) Capital reserve. 8. Adam's son Bruce just completed his MBA course. Now he is planning to continue his father's business. Is this partnership? if no, Then what type is it? A) Yes, partnership. B) No, small business. C) No, company form of business. D) No, family business. Show Answer Correct Answer: D) No, family business. 9. Process of recording of transaction is also called? A) Summarising. B) Reporting. C) Posting. D) Journalising. Show Answer Correct Answer: D) Journalising. 10. Profit sharing ratio A) Sec. 13. B) Sec 13 b. Show Answer Correct Answer: B) Sec 13 b. 11. If the old profit sharing ratio is more than the new profit sharing ratio of a partners, the difference is called A) Capital ratio. B) Sacrificing ratio. C) Gaining ratio. D) None of these. Show Answer Correct Answer: B) Sacrificing ratio. 12. Who is considered to be the internal user of the financial information? A) Creditor. B) Employee. C) Customer. D) Government. Show Answer Correct Answer: B) Employee. 13. Company may allot shares to underwiters to pay their commission. the Entry will be A) Underwriting commission A/c dr.To Underwriters A/c. B) Vendor A/c Dr.to Share Capital A/c. C) No entry is required. D) Either of the Above. Show Answer Correct Answer: A) Underwriting commission A/c dr.To Underwriters A/c. 14. A journal entry in which two or more accounts are debited or credited, are known as? A) Double Entry. B) Multi Entry. C) Additional Entry. D) Compound Entry. Show Answer Correct Answer: D) Compound Entry. 15. When number of shares applied for is more than the that offered for subscription is called A) Under Subscription. B) Over subscription. C) Pro rata. D) Shareholders fund. Show Answer Correct Answer: B) Over subscription. 16. Which of the following is not a characteristic of accounting A) Recording non-monetary transactions. B) Classifying. C) Analysis. D) Summarising. Show Answer Correct Answer: A) Recording non-monetary transactions. 17. A PERSON TO WHOM FIRM HAS SOLD GOODS ON CREDIT IS KNOWN AS A) CREDITOR. B) BAD DEBTS. C) DEBTORS. D) LENDER. Show Answer Correct Answer: C) DEBTORS. 18. Wages and salaries will be recorded in A) Profit and loss account. B) Balancesheet. C) Trading account debit side. D) Trading account credit side. Show Answer Correct Answer: C) Trading account debit side. 19. Which of the following transactions will not result into flow of cash A) Issue of equity shares. B) Purchase of machinery. C) Redemption of 9% debentures. D) Cash deposited into bank. Show Answer Correct Answer: D) Cash deposited into bank. 20. Example of Personal accounts? A) Cash. B) Bank. C) Salary. D) Outstanding salary. Show Answer Correct Answer: D) Outstanding salary. ← PreviousNext →Related QuizzesAccounting QuizzesAccountancy Quiz 1Accountancy Quiz 2Accountancy Quiz 3Accountancy Quiz 4Accountancy Quiz 5Accountancy Quiz 6Accountancy Quiz 7Accountancy Quiz 9Accountancy Quiz 10 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books