This quiz works best with JavaScript enabled. Home > Finance > Accounting > Accountancy > Accountancy – Quiz 22 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Accountancy Quiz 22 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Ram and Mohan are in partnership with 48 others. Mohan wants to admit his friend Sohan into the partnership. All the other partners agree. Will sohan be admitted? A) Yes. B) No. Show Answer Correct Answer: B) No. 2. Equipment, land and buildings included on A) Liquid assets. B) Tangible assets. C) Intangible fixed assets. D) Not the answer above. Show Answer Correct Answer: B) Tangible assets. 3. A voucher is prepared for A) Cash and credit purchases. B) Cash and credit sales. C) Cash received and paid. D) All of these. Show Answer Correct Answer: D) All of these. 4. Accounting communicates information to A) Internal Users. B) External Users. C) Both A and B. D) None of the above. Show Answer Correct Answer: C) Both A and B. 5. Cash book is a form of: A) Trial Balance. B) Ledger. C) Journal. D) All of the above. Show Answer Correct Answer: B) Ledger. 6. Which is not a category of cash flow? A) Investing. B) Operating. C) Current Assets. D) Financing. Show Answer Correct Answer: C) Current Assets. 7. On the admission of a new partner, increase in the value of assetsis debited to A) P n l adjustment a/c. B) Assets a/c. C) Old partners capital a/c. D) None of these. Show Answer Correct Answer: A) P n l adjustment a/c. 8. WHICH ACCOUNTING CONCEPT STATES THAT ONLY THOSE TRANSACTIONS SHOULD BE RECORDED IN THE BOOKS OF ACCOUNTS WHICH CAN BE MEASURED IN TERMS OF MONEY? A) FULL DISCLOSURE. B) MONEY MEASUREMENT. C) REVENUE RECOGNITION. D) GOING CONCERN CONCEPT. Show Answer Correct Answer: B) MONEY MEASUREMENT. 9. 5 Sales book is used to record A) All sales of goods. B) All credit sales of assets. C) All credit sales of goods. D) All sales of assets and goods . Show Answer Correct Answer: C) All credit sales of goods. 10. Liquid or Quick assets = A) Current assets + Stock + Work in progress. B) (Current assets + Work in progress)-Stock. C) Current assets-(Stock + Work in progress). D) (Current assets + Stock) + Work in progress. Show Answer Correct Answer: C) Current assets-(Stock + Work in progress). 11. The liability of shareholders of a company is limited up to their ..... investment A) Goods. B) Debentures. C) Assets. D) Capital. Show Answer Correct Answer: D) Capital. 12. Realisation accounts is prepared when A) Dissolution of partnership firm. B) Admission of a partner. C) Retired of a partner. D) No entry of partner. Show Answer Correct Answer: A) Dissolution of partnership firm. 13. Revaluation account is necessary for A) Adjustment in the value of Assets and liabilities. B) To find the Goodwill of. C) To find the Goodwill of from to find profit and loss of. D) To find profit and loss of firm how to prepare balance sheet. Show Answer Correct Answer: A) Adjustment in the value of Assets and liabilities. 14. Rent due for the month of March will appear ..... of the cash book. A) As a Contra Entry. B) Nowhere. C) On the receipt side. D) On the payment side. Show Answer Correct Answer: B) Nowhere. 15. A balance sheet reports financial information over a specific period of time. A) True. B) False. Show Answer Correct Answer: B) False. 16. Amount invested by owner in business is called? A) Liability. B) Drawings. C) Assets. D) Capital. Show Answer Correct Answer: D) Capital. 17. Accounting provides information on A) Cost and income for managers. B) Company's tax liability for a particular year. C) Financial conditions of an institutions. D) All of the above. Show Answer Correct Answer: D) All of the above. 18. The example of Financial Record is ..... A) Government Rule. B) Circular. C) Trading A/c. D) Notice. Show Answer Correct Answer: C) Trading A/c. 19. Current Liabilities include: A) Bills Payable. B) Creditors. C) Outstanding Expenses. D) All of the above. Show Answer Correct Answer: D) All of the above. 20. While preparing the Balance Sheet of a company 'Securities Premium' is shown under: A) CURRENT LIABILITY. B) SHARE CAPITAL. C) LONG TERM BORROWINGS. D) NONE OF THE ABOVE. Show Answer Correct Answer: D) NONE OF THE ABOVE. 21. X, Y & Z are partners in the ratio of 4:3:2. Salary to X ₹ 15, 000 and to Z ₹ 3, 000 omitted and profits distributed. For rectification, now X will be credited: A) ₹ 7, 000. B) ₹ 15, 000. C) ₹ 12, 000. D) ₹ 1, 000. Show Answer Correct Answer: A) ₹ 7, 000. 22. On a share of Rs. 10 issued at a premium of Rs. 2, whole amount is called-up and Rs. 7 is received, share capital account will be credited by A) Rs. 16. B) Rs. 12. C) Rs. 10. D) Rs. 10. Show Answer Correct Answer: C) Rs. 10. 23. Calls-in-advance and interest thereon is shown as A) Other non-current liabilities. B) Shareholders' funds. C) Other current liabilities. D) Trade payables. Show Answer Correct Answer: C) Other current liabilities. 24. X and Y are partners sharing profits and losses in the ratio of 3:2. Z is admitted for 1/5th share in profits which he gets from X. New profit sharing ratio will be A) 2:2:2. B) 8:12:5. C) 2:2:1. D) 12:8:5. Show Answer Correct Answer: C) 2:2:1. 25. As per Companies Act, the Balance Sheet of a company is required to be presented in ..... A) Horizontal Form. B) Vertical Form. C) Either Horizontal or Vertical Form. D) Neither of the above. Show Answer Correct Answer: B) Vertical Form. 26. Zee ltd. purchased its own 5, 000 7% debenturesof Rs.100 each from open market at Rs.96 each for immediate cancellation.Profit on redemption will be A) 4, 80, 000. B) 35, 000. C) 5, 00, 000. D) 20, 000. Show Answer Correct Answer: D) 20, 000. 27. Which of the following items is a charge against profit? A) Interest on loan. B) Interest on Capital. C) Interest on drawings. D) Partners' salaries. Show Answer Correct Answer: A) Interest on loan. 28. What will be journal entry when cash is withdrawn from bank for personal use? A) Bank A/c debit, Capital A/c credit. B) Bank A/c debit, Drawing A/c credit. C) Drawing A/c debit, Bank A/c credit. D) Cash A/c debit, Bank A/c credit. Show Answer Correct Answer: C) Drawing A/c debit, Bank A/c credit. 29. Debit what comes in, Credit what goes out is rule of which account A) Real Account. B) Nominal Account. C) Personal Account. D) None. Show Answer Correct Answer: A) Real Account. 30. Debts whose repayment obligations are more than one year are referred to as A) Accounts payable. B) Long-term debt. C) Notes payable. D) Current debt. Show Answer Correct Answer: B) Long-term debt. ← 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