This quiz works best with JavaScript enabled. Home > Finance > Accounting > Accountancy > Accountancy – Quiz 16 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Accountancy Quiz 16 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. What is the purpose of preparing profit and loss statement? A) To calculate gross profit. B) To compute closing capital. C) To calculate net profit/ (loss). D) To calculate cost of sales. Show Answer Correct Answer: C) To calculate net profit/ (loss). 2. Complete the following statement:When there is neither Partnership Deed nor express agreement or Partnership Deed exists but it is silent on allowing remuneration to partners, the provisions of the ..... would be applicable. A) Indian Partnership Act, 1932. B) Indian Companies Act, 1956. C) Indian Companies Act, 2013. D) None of above. Show Answer Correct Answer: A) Indian Partnership Act, 1932. 3. Accounting records only ..... transactions A) Business. B) Financial. C) Both a and b. D) None of the above. Show Answer Correct Answer: C) Both a and b. 4. When the amount of goodwill pay privately A) 2 entry. B) 4 entry. C) 3 entry. D) No entry. Show Answer Correct Answer: D) No entry. 5. Cash, goods or assets invested by the proprietor in the business for earning profit is called- A) Profit. B) Capital. C) Fixed assets. D) None of these. Show Answer Correct Answer: B) Capital. 6. When Partners' capital accounts are fixed, which one of the following items will be written in the partner's capital account? A) Additional capital introduced by the partner in the firm. B) Partner's Drawings. C) Loan taken by the partner from the firm. D) Loan advanced by the partner to the firm. Show Answer Correct Answer: A) Additional capital introduced by the partner in the firm. 7. What is the start date for financial year? A) 1st April. B) 1st January. Show Answer Correct Answer: A) 1st April. 8. Which of the following statement is not an objective of accounting? A) To provide information about firms liabilities, assets and capital. B) To provide information on the personal assets and liabilities of the owner of the firm. C) To maintain the records of the business. D) To provide information on the performance of an enterprise. Show Answer Correct Answer: B) To provide information on the personal assets and liabilities of the owner of the firm. 9. Which of the following items cannot be recorded in the profit and loss appropriation account? A) Interest on Capital. B) Partner's salary. C) Interest on drawings. D) Rent paid to partner. Show Answer Correct Answer: D) Rent paid to partner. 10. Industries involve in production of goods from plants and animals are ..... industries A) Genetic. B) Construction. C) Extraction. D) Manufacturing. Show Answer Correct Answer: A) Genetic. 11. How many types of accounts? A) 3. B) 1. C) 2. D) 4. Show Answer Correct Answer: C) 2. 12. WHICH ACCOUNTING CONCEPT REQUIRES THAT STOCK BE RECORDED IN THE BOOKS OF ACCOUNTS AT ITS MARKET VALUE OR COST PRICE WHICH EVER IS LOWER? A) PRUDENCE/ CONSERVATISM. B) REVENUE RECOGNITION. C) HISTORICAL COST. D) CONSISTENCY. Show Answer Correct Answer: A) PRUDENCE/ CONSERVATISM. 13. Classify the type of account for the belowI. Bank-ii. Outstanding salary A) Personal and nominal. B) Personal personal. C) Personal and real. D) None of the above . Show Answer Correct Answer: B) Personal personal. 14. BY WHOM MUST THE BILL OF EXCHANGE BE ACCEPTED IN ORDER TO BE VALIDATED? A) The drawee. B) The payee. C) The drawer. D) None of above. Show Answer Correct Answer: A) The drawee. 15. In case of partnership the act of any partner is: A) Binding on all partners. B) Binding on that partner only. C) Binding on all partners except that particular partner. D) None of the above. Show Answer Correct Answer: C) Binding on all partners except that particular partner. 16. 8 Trial balance is prepared: A) At the end of the year. B) On a particular date. C) For a year. D) None of the above. Show Answer Correct Answer: B) On a particular date. 17. Withdrawal of cash from business by the proprietor is credited to A) Bank A/c. B) Cash A/c. C) Drawing A/c. D) Capital A/c. Show Answer Correct Answer: B) Cash A/c. 18. When the bills of exchange of drawn and accepted for trade purpose it is called ..... A) Trade bill. B) Accommodation bill. Show Answer Correct Answer: A) Trade bill. 19. On dissolution of firm but entry pass for payment of an unrecorded liability A) Realisation To partners cap a/c. B) Cash a/c To realisation. C) No entry. D) Realisation a/c To cash/bank. Show Answer Correct Answer: D) Realisation a/c To cash/bank. 20. What is depreciation? A) An estimate of the fall in value of a fixed asset over time. B) A cash flow caused by buying foxed assets. C) An increase in the value of a currency. D) A cost arising when customers fail to pay their bills. Show Answer Correct Answer: A) An estimate of the fall in value of a fixed asset over time. 21. Investment in Shares & debentures of company which are quoted on a recognized stock exchange are called A) Listing. B) Trading on shares. C) Stock exchange. D) Quoted investment. Show Answer Correct Answer: D) Quoted investment. 22. P and Q are two partners in a firm having capitals of Rs 15000 each.R is admitted for 1/3 rd share for which he has to bring Rs 20000 for his share of capital. The amount of goodwill will be ..... A) 5000. B) 15000. C) 10, 000. D) None of above. Show Answer Correct Answer: C) 10, 000. 23. 'Claims against the Company not acknowledged as debts' is shown under the head ..... A) NON-CURRENT LIABILITIES. B) CONTINGENT LIABILITIES. C) COMMITMENTS. D) CURRENT LIABILITIES. Show Answer Correct Answer: B) CONTINGENT LIABILITIES. 24. 15 Real account deals with A) Individual persons. B) Expenses and losses. C) Assets. D) Incomes and gains . Show Answer Correct Answer: C) Assets. 25. WHICH SYSTEM OF ACCOUNTING SAYS THAT TRANSACTION SHOULD BE RECORDED IN THE BOOKS OF ACCOUNTS WHEN IT IS ENTERED INTO WHETHER CASH RECEIVED OR NOT. A) CASH BASIS. B) ACCRUAL BASIS. C) BOTH CASH AND ACCRUAL BASIS. D) NEITHER CASH NOR ACCRUAL. Show Answer Correct Answer: B) ACCRUAL BASIS. 26. Import duty paid will be included in A) Trading account credit side. B) Trading account debit side. C) Profit and loss account debit side. D) Profit and loss account credit side. Show Answer Correct Answer: B) Trading account debit side. 27. The process of recording, classifying and summarizing all business transactions in order to know the financial result is called- A) Book-keeping. B) Accounting. C) Journalizing. D) None of these. Show Answer Correct Answer: B) Accounting. 28. A & B are partners in a partnership firm without any agreement. A has given a loan of 50, 000 to the firm. At the end of year loss was incurred in the business. Following interest may be paid to A by the firm: A) 6%p.a. B) 6% p.m. C) 5%p.a. D) As there is a loss in the business, interest can't be paid. Show Answer Correct Answer: A) 6%p.a. 29. Which of the following accounts would typically appear on the debit side of a trial balance? A) Loan. B) Service Revenue. C) Accounts Payable. D) Prepaid Rent. Show Answer Correct Answer: D) Prepaid Rent. 30. Borrowing cash from a bank for additional working capital A) Operating. B) Investing. C) Financing. D) None of above. Show Answer Correct Answer: C) Financing. ← PreviousNext →Related QuizzesAccounting QuizzesFinance QuizzesAccountancy Quiz 1Accountancy Quiz 2Accountancy Quiz 3Accountancy Quiz 4Accountancy Quiz 5Accountancy Quiz 6Accountancy Quiz 7Accountancy Quiz 8 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books