This quiz works best with JavaScript enabled. Home > Finance > Accounting > Accountancy > Accountancy – Quiz 1 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Accountancy Quiz 1 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. If payment is to be made to the person whose name has been written after the words "pay" on cheque is called a ..... A) Bearer cheque. B) Order cheque. C) Dishonour of a cheque. D) Crossed cheque. E) None of them. Show Answer Correct Answer: A) Bearer cheque. 2. New partner does not bring his share in cash A) New partners cap. To new partners current a/c. B) Old partners cap. To new partners. C) New partners current account To old partners cap. D) New partners cap. To old partners. Show Answer Correct Answer: C) New partners current account To old partners cap. 3. The ratio obtained by subtracting the old ratio from the new ratio is called? A) The. Loss a ratio. B) S. profit ratio. C) B. equal ratio. D) A. sacrifice ratio. Show Answer Correct Answer: B) S. profit ratio. 4. A player plays football as a profession in any club is ..... activity. A) Economic. B) Religious. C) Satisfaction. D) Non-economic. Show Answer Correct Answer: A) Economic. 5. Debit balance of the current account will be shown on the balance sheet A) Assets. B) Liability. Show Answer Correct Answer: A) Assets. 6. A company purchased a building for 7, 00, 000 and issued equity shares at premium of 20% A) Building a/c dr. 720, 000To share capital a/c 600, 000To SPR a/c 120, 000. B) Building a/c dr. 800, 000To share capital a/c 640, 000To SPR a/c 120, 000. C) Share capital a/c dr. 800, 000To building a/c 720, 000To SPR a/c 80, 000. D) Share capital a/c dr. 720, 000 To building a/c 7, 00, 000 To SPR a/c 20, 000. Show Answer Correct Answer: A) Building a/c dr. 720, 000To share capital a/c 600, 000To SPR a/c 120, 000. 7. Which account is classified as an Liability? A) Concert Tickets. B) Bank Account. C) Allowance. D) Auto Loan. Show Answer Correct Answer: D) Auto Loan. 8. A machinery which cost 200, 000 is depreciated at 25% per year using the written down value method. At the end of three years it will have a net book value of A) 84, 375. B) 1, 00, 000. C) 1, 50, 000. D) 1, 12, 500. Show Answer Correct Answer: A) 84, 375. 9. A debtor of Rs.5, 000, already transferred to Realisation Account agreed to pay the Realisation Expenses of Rs.4, 500 in full settlement of his claim. Choose the correct option: A) No Entry will be passsed. B) Realisation Account will only be debited by Rs.4, 500. Show Answer Correct Answer: A) No Entry will be passsed. 10. The part of the capital which can be called-up only in case of winding up of the Company is called ..... A) Authorised Capital. B) Called up Capital. C) Uncalled Capital. D) Reserve Capital. Show Answer Correct Answer: D) Reserve Capital. 11. The balance in Petty Cash Book is ..... A) A profit. B) A liability. C) An asset. D) An expense. Show Answer Correct Answer: C) An asset. 12. Lower the Debt Equity ratio A) Lower the protection to creditors. B) Higher the protection to creditors. C) It does not affect the creditors. D) None of the above. Show Answer Correct Answer: B) Higher the protection to creditors. 13. Income received before services or goods are provided is referred to as..... A) Net income. B) Income received in advance. C) Accrued income. D) Gross income. Show Answer Correct Answer: B) Income received in advance. 14. If the two sides of an account are equal then account will show:(2015) A) Debit, Credit balance. B) Debit balance. C) Credit balance. D) Zero balance. Show Answer Correct Answer: D) Zero balance. 15. In the absence of partnership deed, the following rule will apply A) 9% p.a. interest on drawings. B) No interest on capital. C) Profit based salary to working partner. D) Profit sharing in capital ratio. Show Answer Correct Answer: B) No interest on capital. 16. Income that has been deducted from expenses and other costs is referred to as..... A) Net income. B) Non-business income. C) Gross income. D) Business income. Show Answer Correct Answer: A) Net income. 17. Where do we show wages&salary? A) Trading credit side. B) Trading debit side. Show Answer Correct Answer: B) Trading debit side. 18. ON WHOM THE TRADE BILL DRAWN? A) Creditor. B) Seller. C) Owner. D) Debtor. Show Answer Correct Answer: D) Debtor. 19. In the absence of partnership deed, is interest paid on loan drawn? A) A. 6 percent annually. B) B. 8 percent annually. C) S. 9 percent annually. D) The. 0 percent per annum. Show Answer Correct Answer: D) The. 0 percent per annum. 20. An owner withdrawing cash from his business for personal use is an events representing business transaction A) False. B) True. Show Answer Correct Answer: B) True. 21. At the time of reconstitution of partnership firm, which of the following adjustment is required? A) Determination of New Profit-sharing Ratio. B) Treatment of Goodwill. C) Revaluation of Assets and Reassessment of Liabilities. D) All of the above. Show Answer Correct Answer: D) All of the above. 22. An increase in the balance in Accounts Payable. A) Operating. B) Supplemental. C) Investing. D) Financing. Show Answer Correct Answer: A) Operating. 23. A registered company is established by the ..... A) Company Act. B) Regional Act. C) Regulation Act. D) Partnership Act. Show Answer Correct Answer: A) Company Act. 24. Manufacturing business houses involve in ..... activities A) Service. B) Production. C) Distribution. D) Exchange. Show Answer Correct Answer: B) Production. 25. The salary paid to a clerk Ramesh should be credited to? A) Cash A/C. B) Salary A/C. C) Ramesh A/C. D) P/L A/C. Show Answer Correct Answer: A) Cash A/C. 26. ..... is the first step in accounting process A) Ledger. B) Trading account. C) Trial balance. D) Journal. Show Answer Correct Answer: D) Journal. 27. The balance in the investment Fluctuation fund after meeting the fall in book value of investment, at the time of admission of partner will transferred to: A) Revaluation Account. B) Capital Account of old Partners. C) General Reserve. D) Capital Account of All Partners. Show Answer Correct Answer: B) Capital Account of old Partners. 28. Closing stock is recorded in trading account and ..... A) Balancesheet liablity side. B) Balancesheet asset side. C) Profit and loss account. D) Trading account debit side. Show Answer Correct Answer: B) Balancesheet asset side. 29. The example of legal record is ..... A) Bill. B) Salary Sheet. C) Articles of Association. D) Letter. Show Answer Correct Answer: C) Articles of Association. 30. The need for valuation of goodwill arises A) When there is a change in the profit sharing ratio. B) When a new partner is admitted. C) When a partner dies. D) All of the above. Show Answer Correct Answer: D) All of the above. Next →Related QuizzesAccounting QuizzesFinance QuizzesAccountancy 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