This quiz works best with JavaScript enabled. Home > Finance > Accounting > Accountancy > Accountancy – Quiz 26 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Accountancy Quiz 26 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Interest on capital will be paid to the partners if provided for in the partnership deed but only out of: A) Profits. B) Goodwill. C) Accumulated Profit. D) Reserve. Show Answer Correct Answer: A) Profits. 2. Assertion (A):Interest on Partner's capital may be shown in Profit and Loss Account. Reason(R):If Partners treat interest on capital as a charge. A) Both (A) and (R) are true and (R) is the correct explanation of (A). B) Both (A) and (R) are true and (R) is not the correct explanation of (A). C) (A) is true, but (R) is false. D) (A) is false, but (R) is true. Show Answer Correct Answer: A) Both (A) and (R) are true and (R) is the correct explanation of (A). 3. Name the difference between capital employed and non current liabilities A) Total debts. B) Total assets. C) Shareholders fund. D) Capital employed. Show Answer Correct Answer: C) Shareholders fund. 4. Would you prefer a credit card with? A) A lower interest rate. B) A higher interest rate. Show Answer Correct Answer: A) A lower interest rate. 5. Which branch of accounting embraces the preparation of various tax returns and tax planning necessary to minimize the impact of taxes on the firm? A) Auditing. B) Tax accounting. C) Financial accounting. D) Cost accounting. Show Answer Correct Answer: B) Tax accounting. 6. A business transaction affects:(2015) A) At least two accounts. B) Maximum three accounts. C) Maximum two accounts. D) At least one account. Show Answer Correct Answer: A) At least two accounts. 7. A amount of any known liability cannot be determined with accuracy A) A liability should be provided. B) A provision should be made. C) A reserve should be set aside. D) None of these. Show Answer Correct Answer: B) A provision should be made. 8. Types of capital based on their nature are divided into: A) Internal and external capital. B) Personal and social capital. C) Concrete and abstract capital. D) Own capital or loans. Show Answer Correct Answer: C) Concrete and abstract capital. 9. A ..... is an Intangible Assets. A) Goodwill. B) Cash. C) Stock. D) Furniture. Show Answer Correct Answer: A) Goodwill. 10. Debenture issued as collateral security will be debited to A) Debenture A/c. B) Bank A/c. C) Debenture Suspense A/c. D) Profit & Loss A/c. Show Answer Correct Answer: C) Debenture Suspense A/c. 11. Uncalled capital means A) Balance of authorized capital. B) Amount Collected later from public when required. C) Part of Called up capital. D) None of above. Show Answer Correct Answer: B) Amount Collected later from public when required. 12. "T" account is the simplest form of a:(2015) A) Journal. B) Trial balance. C) Final account. D) Ledger. Show Answer Correct Answer: D) Ledger. 13. An example of social capital is A) Road. B) Copyright. C) Machine. D) Private house. Show Answer Correct Answer: A) Road. 14. ABC Ltd. issued 40, 000; 10% Debentures of ₹ 100 each at par for cash payable in full along with the application. Applications were received for 60, 000 debentures. Debentures were allotted and excess application money was refunded.what is amount that is refunded? A) 2000000. B) 20000. C) 200000. D) All of the above. Show Answer Correct Answer: A) 2000000. 15. On revaluation, the increase in the value of assets leads to A) Gain. B) Loss. C) Expense. D) None of these. Show Answer Correct Answer: A) Gain. 16. Debentures interest payable half yearlyamount of interest will be debited to P&L will be A) 24000. B) 3000. C) 6000. D) 12, 000. Show Answer Correct Answer: A) 24000. 17. A Sole proprietor concern is free from regulation by A) Government. B) Indian Contract Act. C) Indian Law. D) Private Indian. Show Answer Correct Answer: A) Government. 18. The amount of goodwill is withdrawn by old partners A) Old partners capital a/c To bank. B) New partners capital a/c To bank. C) Bank To old partner. D) Bank To new partners. Show Answer Correct Answer: A) Old partners capital a/c To bank. 19. Balance of partner's current accounts are: A) Debit & create Balance. B) Either debit balance nor credit balance. C) Credit balance. D) Debit balance. Show Answer Correct Answer: A) Debit & create Balance. 20. What will always be the balance of partners' current accounts? A) A. Dr.(Debit) Balance. B) B. Cr.(Deposit) Balance. C) S. either of both. D) The. none of these. Show Answer Correct Answer: C) S. either of both. 21. By virtue of Section 464 of the Companies Act, 2013 the Central Government is empowered to prescribe maximum number of partners in a firm but the number of partners cannot be more than ..... A) 20. B) 100. C) 10. D) 50. Show Answer Correct Answer: B) 100. 22. Assertion:Accounting helps in the identification of the strength and weakness of the business.Reason:Accounting records all the business transactions that can be expressed in terms of money A) Both A and R are true and R is the correct explanation of A. B) Both A and R are true but R is not the correct explanation of A. C) A is true but R is false. D) A is false but R is true. Show Answer Correct Answer: B) Both A and R are true but R is not the correct explanation of A. 23. A, B and C are partners in 3:4:2. B wants to retire from the firm. The profit on revaluation on that date was ₹ 36, 000. New ratio of A and C is 5:3. Profit on revaluation will be distributed as: A) A ₹ 22, 500; C ₹ 13, 500. B) A ₹ 23, 625; C ₹ 12, 375. C) A ₹ 16, 000; B ₹ 12, 000; C ₹ 8, 000. D) A ₹ 12, 000; B ₹ 16, 000; C ₹ 8, 000. Show Answer Correct Answer: D) A ₹ 12, 000; B ₹ 16, 000; C ₹ 8, 000. 24. The written agreement signed by the partners entailing all terms and conditions of partnership is called A) Partnership agreement. B) Partnership document. C) Partnership contract. D) Partnership deed. Show Answer Correct Answer: D) Partnership deed. 25. Which of the following is not an internal user? A) Creditors. B) Employees. C) Management. D) Owners. Show Answer Correct Answer: A) Creditors. 26. On the basis of retention, records may be classified into ..... types. A) Three. B) Two. C) Four. D) Five. Show Answer Correct Answer: C) Four. 27. Information needed to prepare a balance sheet liabilities section is obtained from a work sheet's Account Title column and A) Balance sheet credit column. B) Income statement credit column. C) Income statement debit column. D) Balance sheet debit column. Show Answer Correct Answer: A) Balance sheet credit column. 28. In GAAP, the accounting principles that can be implemented without much complexity or cost is- A) Relevance. B) Objectivity. C) Feasibility. D) None of the above. Show Answer Correct Answer: C) Feasibility. 29. Subscription received in cash during the year amounted to Rs 60, 000. Subscription received in advance for next year was Rs 3, 000 and received in advance during previous year was Rs 2, 000. Subscription in arrear at the end of current year was Rs 5, 400. The amount credited to Income and Expenditure Account will be: A) Rs 64, 400. B) Rs 66, 400. C) Rs 56, 600. D) Rs 53, 600. Show Answer Correct Answer: A) Rs 64, 400. 30. Assertion:Goodwill is a tangible fixed asset.Reason:Tangible fixed assets can be touched and felt. A) Both A and R are true and R is the correct explanation of A. B) Both A and R are true but R is not the correct explanation of A. C) A is true but R is false. D) A is false but R is true. Show Answer Correct Answer: D) A is false but R is true. ← 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