This quiz works best with JavaScript enabled. Home > Finance > Accounting > Accountancy > Accountancy – Quiz 2 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Accountancy Quiz 2 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Final accounts is the ..... stage of accounting cycle. A) Last. B) First. C) Second. D) None of above. Show Answer Correct Answer: A) Last. 2. As per table F Of Schedule I of Companies Act 2013, the amount to be called up on application or on any call shall not exceed ..... % of total quantum of the issue A) 25%. B) 35%. C) 30%. D) 20%. Show Answer Correct Answer: A) 25%. 3. RECORDING OF TRANSACTIONS IS DONE IN A BOOK CALLED A) SALES BOOK. B) JOURNAL. C) LEDGER. D) PURCHASE BOOK. Show Answer Correct Answer: B) JOURNAL. 4. Balance Sheet provides information about financial position of the enterprise: A) At a point in time. B) Over a period of time. C) For a period of time. D) None of the above. Show Answer Correct Answer: A) At a point in time. 5. Out of the following assets which one is not a Current Asset? A) Bank Balance. B) Prepaid Expenses. C) Debtors. D) Motor Car. Show Answer Correct Answer: D) Motor Car. 6. In dissolution where are the Reserve and accumulated profits transferred A) Partners capital account. B) Partners capital account realisation account. C) Bank account. D) None. Show Answer Correct Answer: A) Partners capital account. 7. X and Y are partners sharing profits in the ratio of 2:1. On 31st March, 2016, their Balance Sheet showed General Reserve of Rs.60, 000. It was decided that in future they will share profits and losses in the ratio of 3:2. Pass necessary Journal entry If they want to show General Reserve in the new Balance Sheet. A) X's Capital A/c Dr. 60, 000 To Y's Capital A/c 60, 000. B) X's Capital A/c Dr. 4, 000 To Y's Capital A/c 4, 000. C) Y's Capital A/c Dr. 4, 000 To X's Capital A/c 4, 000. D) Y's Capital A/c Dr. 60, 000 To X's Capital A/c 60, 000. Show Answer Correct Answer: C) Y's Capital A/c Dr. 4, 000 To X's Capital A/c 4, 000. 8. Which of the following items is shown under the head 'Current Assets' while preparing the Balance Sheet of a company? A) Livestock. B) Trade Investment. C) Underwriting Commission. D) Inventories. Show Answer Correct Answer: D) Inventories. 9. Received commission effects on A) Cash and capital. B) Cash and commission. C) Capital and commission. D) Capital only. Show Answer Correct Answer: A) Cash and capital. 10. Accounting process starts with ..... A) Summarising of financial transactions. B) Identification of financial transaction. C) Posting into ledger. D) Recording in Journal. Show Answer Correct Answer: B) Identification of financial transaction. 11. Double entry in accounting means there must be ..... entries for every transaction? A) One. B) Six. C) Three. D) Two. Show Answer Correct Answer: D) Two. 12. In the absence of partnerships deed profit will he shared A) Equal ratio. B) Capital ratio. C) Both. D) None of these. Show Answer Correct Answer: A) Equal ratio. 13. The amount of net income calculated on an income statement is correct if A) Debits equal credits. B) It is the same as the balance sheet. C) It is the same as the net income shown on the work sheet. D) None of these. Show Answer Correct Answer: C) It is the same as the net income shown on the work sheet. 14. Financial statements are not comparable. A) True. B) False. Show Answer Correct Answer: B) False. 15. The person to whom the amount are due for goods purchased or service rendered on credit basis- A) Credit sales. B) Credit purchase. C) Trade debtors. D) Trade creditors. Show Answer Correct Answer: D) Trade creditors. 16. Which account is classified as an income? A) Cash. B) Cell phone bill. C) Credit card. D) Babysitting payment. Show Answer Correct Answer: D) Babysitting payment. 17. Which of the following is definition of accounting? A) It's a process of classifying, recording, and summarizing the business transaction in monetary unit, interpretating the data and assist stakeholders in making decision. B) It's a process of recording, classifying, and summarizing the business transaction in monetary unit, interpretating the data and assist stakeholders in making decision. C) It's a process of classifying, recording, and summarizing the business transaction interpreting the data and assist stakeholders in making decision. D) None of above. Show Answer Correct Answer: B) It's a process of recording, classifying, and summarizing the business transaction in monetary unit, interpretating the data and assist stakeholders in making decision. 18. Those Assets which are acquired for the purpose of increasing the earning capacity of the business is called A) Financial assets. B) Current Assets. C) Fixed Assets. D) None of these. Show Answer Correct Answer: C) Fixed Assets. 19. Share can be issued to public at discount A) True. B) False. C) Don't know. D) None of these. Show Answer Correct Answer: B) False. 20. Gross loss is find from which account A) Trading account. B) Profit &Loss account. C) Balance sheet. D) None of these. Show Answer Correct Answer: A) Trading account. 21. X and Y are partners in the ratio of 3:2. Their capitals are ₹ 2, 00, 000 and ₹ 1, 00, 000 respectively. Interest on capitals is allowed @ 8% p.a. Firm incurred a loss of ₹ 60, 000 for the year ended 31st March, 2019. Interest on Capital will be: A) X ₹ 16, 000; Y ₹ 8, 000. B) X ₹ 8, 000; Y ₹ 4, 000. C) X ₹ 14, 400; Y ₹ 9, 600. D) No interest will be allowed. Show Answer Correct Answer: D) No interest will be allowed. 22. What rate interest is payable on the amount remaining unpaid to the executor of deceased partner A) 4%. B) 6%. C) 8%. D) 7%. Show Answer Correct Answer: B) 6%. 23. Specific donation received by not for profit organisation is shown in the A) Credit side of income and Expenditure Account. B) Debit side of income and Expenditure Account. C) Liability side of Balance Sheet. D) As is decided by the management. Show Answer Correct Answer: C) Liability side of Balance Sheet. 24. X, Y & Z are partners in the ratio of 5:4:3. X has given to Z a guarantee of minimum ₹ 10, 000 profit. For the year ending 31st March, 2019, Firm's profit is ₹ 28, 800. X's share in profit will be: A) ₹ 9, 600. B) ₹ 9, 200. C) ₹ 7, 200. D) ₹ 12, 000. Show Answer Correct Answer: B) ₹ 9, 200. 25. Balance of Purchase Consideration is Debited to A) Capital Reserve A/c. B) Bank A/c. C) Capital A/c. D) Goodwill A/c. Show Answer Correct Answer: D) Goodwill A/c. 26. Mohar ltd. forfeited 160 shares of Rs. 10 each on which the holder had paid only the application money of Rs. 2 per share. Out of these, 40 shares were reissued to Gaurav as fully paid up for Rs. 9 per share. The gain on reissue is A) Rs. 320. B) Rs. 160. C) Rs. 40. D) None of these. Show Answer Correct Answer: C) Rs. 40. 27. What does a credit balance in the cash account on the trial balance indicate? A) Cash is an expense. B) Cash is a liability. C) Cash is an asset. D) Cash is Overdrawn. Show Answer Correct Answer: D) Cash is Overdrawn. 28. Accounting Equations means A) L=A+C. B) C=L+A. C) DEBIT=CREDIT. D) A=L+C. Show Answer Correct Answer: D) A=L+C. 29. A Co. has issued 6, 000 equity shares of. Rs. 10 each at par and called up amount Rs. 6 per share. The remaining part of capital is termed as A) Called up Capital. B) Paid up Capital. C) Uncalled Capital. D) Subscribed Capital. Show Answer Correct Answer: C) Uncalled Capital. 30. The value of goodwill is based on ..... judgment of the valuer. A) Subjective. B) Objective. C) Both. D) None. Show Answer Correct Answer: A) Subjective. ← PreviousNext →Related QuizzesAccounting QuizzesFinance QuizzesAccountancy Quiz 1Accountancy Quiz 3Accountancy Quiz 4Accountancy Quiz 5Accountancy Quiz 6Accountancy Quiz 7Accountancy Quiz 8Accountancy Quiz 9 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books