This quiz works best with JavaScript enabled. Home > Finance > Accounting > Accountancy > Accountancy – Quiz 19 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Accountancy Quiz 19 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which of the following is not a limitation of financial statement analysis A) Ignores the qualitative elements. B) Ignores the price level changes. C) Intra-firm comparison. D) Not free from personal bias. Show Answer Correct Answer: C) Intra-firm comparison. 2. Bad debts will be recorded in A) Trading account credit side. B) Profit and loss account debit side. C) Balancesheet liablity side. D) Profit and loss account credit side. Show Answer Correct Answer: B) Profit and loss account debit side. 3. Pick the odd one out: A) Interest on Partner's Loan. B) Interest on Partner's Capital. C) Partners' Salaries/Commission. D) Transfer of Part of Profit to Reserve. Show Answer Correct Answer: A) Interest on Partner's Loan. 4. Making partnership deed- A) A. are mandatory. B) B. are optional. C) S. are partly mandatory. D) The. none of these. Show Answer Correct Answer: B) B. are optional. 5. Receipts and payments account is prepared on A) Sales Basis. B) Time basis. C) Accrual Basis. D) Cash Basis. Show Answer Correct Answer: D) Cash Basis. 6. The Balance of Petty Cash is: A) Liability. B) Revenue. C) An asset. D) An Expense. Show Answer Correct Answer: C) An asset. 7. On retirement of a partner, goodwill will be credited to the Capital Account of: A) Retiring Partner. B) Remaining Partners. Show Answer Correct Answer: A) Retiring Partner. 8. Following are essential elements of a partnership firm except: A) At least two persons. B) There is an agreement between all partners. C) An equal share of profits and losses. D) A partnership agreement is for some businesses. Show Answer Correct Answer: C) An equal share of profits and losses. 9. Which one of the following is not a main objective of accounting? A) Solving tax disputes with tax authorities . B) Ascertainment of the financial position of the business. C) Systematic recording of transactions. D) Ascertainment of the profitability of the business. Show Answer Correct Answer: A) Solving tax disputes with tax authorities . 10. Gain on reissue of forfeiture share transfer to ..... A) Capital reserve. B) Reserve capital. C) P/L account. D) None of these. Show Answer Correct Answer: A) Capital reserve. 11. A Ltd. issued 2, 000; 9% Debentures of ₹ 100 each on the following terms: ₹ 20 on applications ; ₹ 20 on allotment ; ₹ 30 on first call ; ₹ 30 on final call.The public applied for 2, 400 debentures. Applications for 1, 800 debentures were accepted in full. Applications for 400 debentures were allotted 200 debentures and applications for 200 debentures were rejectedamount to be credited in 9%debenture allotment at the time of application A) 40000. B) 4000. C) 400. D) None of these. Show Answer Correct Answer: B) 4000. 12. Accounting equation can be expressed as- A) Liability = Assets + Capital. B) Assets = Liability-Capital. C) Assets = Liability + Capital. D) Assets = Internal Equity-External Equity. Show Answer Correct Answer: C) Assets = Liability + Capital. 13. A documentary evidence in support of business transaction is known as A) Entry. B) Voucher. C) Purchases. D) Events. Show Answer Correct Answer: B) Voucher. 14. Number of partners in a partnership firm may be: A) Maximum One Hundred. B) Maximum Two. C) Maximum Fifty. D) Maximum Ten. Show Answer Correct Answer: C) Maximum Fifty. 15. Select the odd one out A) Goodwill brought by new partner. B) Investment fluctuation fund. C) Accumulated loss. D) Revaluation profit. Show Answer Correct Answer: A) Goodwill brought by new partner. 16. Shreya is a good baker. She wants to start a bakery. For this, she wants to get into partnership with her friend's daughter advita, interested in business, who's 15th birthday was celebrated a week ago. Can they form a partnership? A) No. B) Yes. Show Answer Correct Answer: A) No. 17. Accounting measures the business transactions in terms of ..... units. A) Non-Monetary. B) Valueless. C) Monetary. D) Marketable. Show Answer Correct Answer: C) Monetary. 18. At the time of reissue of all forfeited shares A) General reserve is debited with the credit balance left in the forfeited shares account. B) General reserve is credited with the credit balance left in the forfeited shares account. C) General reserve is credited with the credit balance left in the forfeited shares account. D) Capital reserve is credited with the credit balance left in the forfeited shares account. Show Answer Correct Answer: D) Capital reserve is credited with the credit balance left in the forfeited shares account. 19. If any loan or advance is provided by partner then, balance of such Loan Account should be transferred to A) Partners loan account. B) Partners capital account. C) Assets side of balance sheet. D) Liabilities site of balance sheet. Show Answer Correct Answer: D) Liabilities site of balance sheet. 20. The basic accounting postulates are denoted by- A) Concepts. B) Book keeping. C) Accounting. D) None. Show Answer Correct Answer: A) Concepts. 21. Journal entries of workmens compensation reserve A) All partners cap. To W.C.R. B) W.C.R A/C TO All partners cap. C) Retire partners cap.a/c To W.C.R. D) W.C.R To retired partners cap. Show Answer Correct Answer: B) W.C.R A/C TO All partners cap. 22. Which of the following is the primary purpose of a ledger in accounting? A) To record financial transactions in chronological order. B) To prepare financial statements. C) To provide a summary of all accounts with their balances. D) To record cash transactions only. Show Answer Correct Answer: C) To provide a summary of all accounts with their balances. 23. Warehousing maintains safety of goods and services and fulfills ..... utility. A) Time. B) Place. C) Finance. D) Risk. Show Answer Correct Answer: A) Time. 24. Ledger is a book in which:(2016) A) Only personal and cash accounts are opened. B) Only real accounts are opened. C) Only nominal accounts are opened. D) All, real, nominal and personal accounts are opened. Show Answer Correct Answer: D) All, real, nominal and personal accounts are opened. 25. Credit rules for personal account is A) Credit the giver. B) Credit the receiver. C) Credit what comes in. D) Credit all gain and expenses. Show Answer Correct Answer: A) Credit the giver. 26. 4 month bill drawn on 1st January 2019 will mature for payment on ..... A) 4th may 2019. B) 3rd may 2019. C) 10th may 2019. D) 5th may 2019. Show Answer Correct Answer: A) 4th may 2019. 27. Working Capital is the: A) Cash and Bank Balance. B) Capital borrowed from the Banks. C) Difference between Current Assets and Current Liabilities. D) Difference between Current Assets and Fixed Assets. Show Answer Correct Answer: C) Difference between Current Assets and Current Liabilities. 28. How many types of share? A) 2. B) 1. C) 3. D) 4. Show Answer Correct Answer: A) 2. 29. Interpretation of Financial Statements includes: A) Criticisms and Analysis. B) Comparison and Trend Study. C) Drawing Conclusion. D) All the above. Show Answer Correct Answer: D) All the above. 30. Total assets in a business are Rs 8, 00, 000 and total liabilties are Rs 5, 00, 000. The difference is called: A) Capital. B) Expenses. C) Goodwill. D) Income. Show Answer Correct Answer: A) Capital. ← 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