This quiz works best with JavaScript enabled. Home > Finance > Accounting > Accountancy > Accountancy – Quiz 25 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Accountancy Quiz 25 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Left hand side of an account is called:(2015) A) Debit side. B) Credit side. C) Both A and B. D) None of these. Show Answer Correct Answer: A) Debit side. 2. Kaveri Ltd. a financing company, took loan of ' 20, 00, 000 during the year to be repaid in 5 yearly instalments starting after two years @ 10% p.a. It will be included in which of the following activities while preparing Cash Flow Statements? A) Investing Activities. B) Financing Activities. C) Both Investing and Financing Activities. D) Operating Activities. Show Answer Correct Answer: B) Financing Activities. 3. 14 The process of transferring the debit and credit items from journal to ledger accounts is called A) Balancing. B) Posting. C) Journalising. D) Casting. Show Answer Correct Answer: B) Posting. 4. Credit the increase in:(2015) A) Assets, Expenses. B) Assets, Capital and Liabilities. C) Revenue, Capital and Liabilities. D) Expenses, Capital and Liabilities. Show Answer Correct Answer: C) Revenue, Capital and Liabilities. 5. From the given items which is not shown under current liabilities A) Trade payables. B) Short-term provisions. C) Short-term borrowings. D) Inventories. Show Answer Correct Answer: D) Inventories. 6. The retiring partner may claim a share in the profits of the firm even after his retirement if his account is not settled A) False. B) True. Show Answer Correct Answer: B) True. 7. Analysis simply means simplification of data. A) True. B) False. Show Answer Correct Answer: A) True. 8. The financial statement that reports income/loss along with expenses. A) Income statement. B) Work sheet. C) Balance sheet. D) Owner's equity statement. Show Answer Correct Answer: A) Income statement. 9. What is L.F. in cash book? A) Ledger folio. B) Latest file. C) Ledger file. D) Latest forward. E) Last forward. Show Answer Correct Answer: D) Latest forward. 10. An employee dismissed from his job is an events which represent business transaction. A) True. B) False. Show Answer Correct Answer: B) False. 11. A Person to whom goods is sold on credit is called A) Debtor. B) Creditor. C) Seller. D) Liability. Show Answer Correct Answer: A) Debtor. 12. A decrease in the balance of Accounts Receivable. A) Financing. B) Investing. C) Supplemental. D) Operating. Show Answer Correct Answer: D) Operating. 13. The excess of assets over liabilities is A) Profit. B) Capital. C) Cash. D) Loss. Show Answer Correct Answer: B) Capital. 14. Debentures redeemable after 10 years from the date of issue are shown as A) Short-term borrowings. B) Other short-term liabilities. C) Other long-term liabilities. D) Long-term borrowings. Show Answer Correct Answer: D) Long-term borrowings. 15. Is revaluation profit transferred on admission of partner? A) A. In the capital account of all the partners. B) B. In the capital account of the new partner. C) S. In the capital account of old partners. D) The. in profit and loss account. Show Answer Correct Answer: C) S. In the capital account of old partners. 16. A, B and C are partners sharing profits in the ratio 2:2:1.C retired. The new profit sharing ratio between A and B will be: A) 2:1. B) 1:1. C) 3:1. D) None of the above. Show Answer Correct Answer: B) 1:1. 17. Financial position of a business is ascertained on the basis of A) Balance Sheet. B) Journal. C) Trial balance. D) Ledger. Show Answer Correct Answer: A) Balance Sheet. 18. The area of accounting which focuses on reporting information to internal users. A) Payroll Accounting. B) Managerial Accounting. C) Financial Accounting. D) Accounts Payable Accounting. Show Answer Correct Answer: B) Managerial Accounting. 19. Which of the following statement is false? A) At maturity, debenture holders get back their money. B) Debentures can be forfeited for non-payment of call money. C) In Company's Balance Sheet, debentures are shown under the head Long term borrowings. D) Interest on Debentures is a charge against profit. Show Answer Correct Answer: B) Debentures can be forfeited for non-payment of call money. 20. Rs. 5, 000 received from Mohan whose account was written off as bad in the previous year should be credited to: A) Mohan's A/c. B) Bad debts A/c. C) Bad debts recovered A/c. D) None. Show Answer Correct Answer: C) Bad debts recovered A/c. 21. Value of fixed assets will be recorded in A) Balancdesheet liablity. B) Balancesheet assets. C) Profit and loss account. D) Trading account. Show Answer Correct Answer: B) Balancesheet assets. 22. Double entry system means A) Twice recorded. B) Once in ledger once in journal. C) Recording of both aspects of transaction. D) None of these. Show Answer Correct Answer: C) Recording of both aspects of transaction. 23. On retirement of a partner, the remaining partners compensate A) Retiring partner only. B) Remaining partners only who have sacrificed. C) Retiring partner as well as remaining partner who have sacrificed. D) None of the above. Show Answer Correct Answer: C) Retiring partner as well as remaining partner who have sacrificed. 24. Items or events having insignificant economic effect or not being relevant to the user's need not be disclosed in A) Full disclosure principle. B) Materiality principle. C) Conservatism principle. D) Accrual principle. Show Answer Correct Answer: B) Materiality principle. 25. Which is not a section on the income statement? A) Expenses. B) Owner's Equity. C) Revenue. D) Net Income/Net Loss. Show Answer Correct Answer: B) Owner's Equity. 26. From the following information calculate proprietary ratio:share capital Rs 5, 00, 000, non current assets Rs 22, 00, 000, reserves and surplus Rs 3, 00, 000, current assets Rs 10, 00, 000. A) 70%. B) 100%. C) 40%. D) 25%. Show Answer Correct Answer: D) 25%. 27. ALL ASSETS INCLUDING CASH ARE TRANSFERRED TO THE REALIZATION ACCOUNT A) FALSE. B) TRUE. Show Answer Correct Answer: A) FALSE. 28. A firm earns ₹ 1, 10, 000. The normal rate of return is 10%. The assets of the firm amounted to ₹ 11, 00, 000 and liabilities to ₹ 1, 00, 000. The value of goodwill by capitalisation of Average Profit will be: A) ₹ 1, 00, 000. B) ₹ 5, 000. C) ₹ 2, 00, 000. D) ₹ 10, 000. Show Answer Correct Answer: A) ₹ 1, 00, 000. 29. Q1 When goodwill is not recorded in the books at all on admission of a partners? A) If not brought in cash. B) If paid privately. C) If brought in cash. D) If brought in Kind. Show Answer Correct Answer: B) If paid privately. 30. WHICH OF THE FOLLOWING IS NOT AN OBJECTIVE OF ACCOUNTING STANDARDS A) TO BRING UNIFORMITY IN ACCOUNTING PRACTICES. B) TO PROVIDE NORMS FOR PREPARATION AND PRESENTATION OF ACCOUNTING STATEMENTS. C) TO MAKE COMPARISON MEANINGFUL. D) TO EARN PROFIT IN BUSINESS. Show Answer Correct Answer: D) TO EARN PROFIT IN BUSINESS. ← 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