This quiz works best with JavaScript enabled. Home > Finance > Accounting > Accountancy > Accountancy – Quiz 21 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Accountancy Quiz 21 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. In the absence of any information, it is assumed that Securities Premium is due alongwith ..... A) Application Money. B) Allotment Money. C) Call Money. D) As per convenience. Show Answer Correct Answer: B) Allotment Money. 2. Surplus, i.e., Balance in Statement of profit and loss is shown as A) Share capital. B) Reserves and surplus. C) Other long-term liabilities. D) Current liabilities. Show Answer Correct Answer: B) Reserves and surplus. 3. What is meant by a Debenture? A) Debenture is an oral acknowledgement of debt taken by company. B) Debenture is a written acknowledgement of debt taken by company. C) Debenture may be written or oral acknowledgement of debt taken by company. D) None of these. Show Answer Correct Answer: B) Debenture is a written acknowledgement of debt taken by company. 4. Investment Fluctuation Reserve Rs. 1, 80, 000, Investment Rs. (Book Value) 4, 00, 000 & Market value Rs.4, 20, 000 with what Amount A will be credited. If their are three Partners Sharing Profit & Losses 2:2:1. Now From 1st April 2020 wants to change to 3:2:1. A) Rs.1, 08, 000. B) Rs.1, 00, 000. C) Rs.72, 000. D) Rs.80, 000. Show Answer Correct Answer: D) Rs.80, 000. 5. A and B are partners sharing profits in ratio of 2:1. They admit C for 1/3 share in profits. The sacrifice ratio of A and B is A) 2:3. B) 1:1. C) 1:2. D) 2:1. Show Answer Correct Answer: D) 2:1. 6. Declaration and payment of dividends on company's stock. A) Supplemental. B) Investing. C) Financing. D) Operating. Show Answer Correct Answer: C) Financing. 7. Ascertain the accounting equation when, purchase furniture for Rs. 10, 000 A) 10, 000 + 10, 000 = 0 + 0. B) 10, 000 = 10, 000 + 0. C) (-) 10, 000 + 10, 000 = 0 + 0. D) 10, 000 = 0 + 10, 000. Show Answer Correct Answer: C) (-) 10, 000 + 10, 000 = 0 + 0. 8. An Expense is..... A) An expense is defined as a decrease in assets which can be a distribution to the owner. B) An expense is defined as an increase in assets which can be a distribution to the owner. C) An expense is defined as a decrease in assets which is not a distribution to the owner. D) None of above. Show Answer Correct Answer: C) An expense is defined as a decrease in assets which is not a distribution to the owner. 9. The ..... of a business firm is measured by its ability to satisfy its short term obligations as they become due. A) Profitability. B) Liquidity. C) Debt. D) Activity. Show Answer Correct Answer: B) Liquidity. 10. Income and Expenditure A/C is prepared in order to ascertain A) Profit or Loss. B) Surplus or Deficit. C) Cash in hand & at Bank. D) Assets & Liabilities. Show Answer Correct Answer: B) Surplus or Deficit. 11. In Partnership business there must be ..... among the partners A) Disputes. B) Friendly. C) Utmost Good Faith. D) Normal Relation. Show Answer Correct Answer: C) Utmost Good Faith. 12. Amount of capital stated in MoA of company as its registered Capital A) Authorised Capital. B) Reserve Capital. C) Paid up Capital. D) Share Capital. Show Answer Correct Answer: A) Authorised Capital. 13. Petty cash may be used to pay A) The expenses relating to postage and conveyance. B) Salary to administrative staff. C) For the purchase of furniture and fixtures. D) For the purchase of raw material. Show Answer Correct Answer: A) The expenses relating to postage and conveyance. 14. A businessman generally opens a ..... account with a bank and maintains related cash book. A) Fixed deposit. B) Savings. C) Multiple deposit. D) Premium. E) Current. Show Answer Correct Answer: B) Savings. 15. A and B are partners sharing profits in ratio of 3:2. A's Capital is Rs. 30, 000 and B's Capital is Rs. 15, 000. They admit C for 1/5thshare of profits. C will bring as his capital A) Rs. 12, 000. B) Rs. 11, 250. C) Rs. 14, 500. D) Rs. 9, 000. Show Answer Correct Answer: B) Rs. 11, 250. 16. While preparing the Balance Sheet of a Company which item is shown under the head 'Long term Borrowings'? A) 6% Debentures. B) Security Premium Reserve. C) Trade Payable. D) None of the above. Show Answer Correct Answer: A) 6% Debentures. 17. Capital of the partners are maintained by: A) Fixed capital method. B) Fluctuating capital method. C) By any two above methods. D) None of these. Show Answer Correct Answer: C) By any two above methods. 18. Generally cash book is made on which basis. A) Weekly. B) Monthly. C) Yearly. D) All of them. E) Any of them. Show Answer Correct Answer: A) Weekly. 19. In the absence of partnership deed, how is profit and loss divided? A) S. equal ratio. B) The. in proportion to income. C) B. sacrifice ratio. D) A. capital ratio. Show Answer Correct Answer: A) S. equal ratio. 20. Straight line method of depreciation is that method under which A) Depreciation is charged at the fixed percentage on the book value of the assets. B) Depreciation is charged at a fixed percentage on the original cost of the assets. C) Depreciation is charged on original cost of asset but the depreciation rate changes. D) None of the above. Show Answer Correct Answer: B) Depreciation is charged at a fixed percentage on the original cost of the assets. 21. X and Y are partners with capital of Rs.50, 000 each. They admit Z as a partner with 1/4th share in the profits of the firm. Z brings in Rs.80, 000 as his share of capital. The Profit and Loss Account showed a credit balance of Rs.40, 000 as on date of admission of Z. The Value of Firm's Goodwill will be A) Rs. 1, 80, 000. B) Rs. 25, 000. C) Rs. 1, 00, 000. D) Nil. Show Answer Correct Answer: C) Rs. 1, 00, 000. 22. The formula for calculating the net income component percentage is A) Net income / total sales. B) Total sales / total expenses. C) Total sales-total expenses / net income. D) None of these. Show Answer Correct Answer: A) Net income / total sales. 23. For getting share in profits, a new partner brings A) Capital. B) Loan. C) Goodwill. D) None of these. Show Answer Correct Answer: C) Goodwill. 24. Which of the following capital is not shown in the company's Balance Sheet ' A) Authorised capital. B) Issued &subscribed capital. C) Called-up and paid up-capital. D) Reserve capital. Show Answer Correct Answer: D) Reserve capital. 25. Which one of the following is not branch of accounting A) Financial accounting. B) Management accounting. C) Human resources accounting. D) None of the above. Show Answer Correct Answer: D) None of the above. 26. When two parallel lines are drawn across the cheque, it is said to be crossed 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. 27. If transaction is totally omitted from the books, it is called? A) AAS. B) S. C) V. D) A. Show Answer Correct Answer: B) S. 28. Expenses which are paid in advance is ..... A) Prepaid Expenses. B) Postpaid Expenses. C) Outstanding Expenses. D) Accrued Expenses. Show Answer Correct Answer: A) Prepaid Expenses. 29. If, at the time of admission, the Revaluation A/c shows a profit, it should be credited to A) All Partners Capital Accounts in the new profit sharing ratio. B) Old Partners Capital Accounts in the old profit sharing ratio. C) Old Partners Capital Account in the sacrificing ratio. D) All Partners Capital Accounts equally. Show Answer Correct Answer: B) Old Partners Capital Accounts in the old profit sharing ratio. 30. Sole Trading concern is ..... liability in nature A) Less Limited. B) Unlimited. C) Limited. D) More Limited. Show Answer Correct Answer: B) Unlimited. ← 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