This quiz works best with JavaScript enabled. Home > Finance > Accounting > Accountancy > Accountancy – Quiz 28 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Accountancy Quiz 28 (29 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. When preparing a balance sheet, the amount of owner's capital is obtained from A) The general ledger. B) The work sheet's balance sheet credit column. C) The income statement. D) None of these. Show Answer Correct Answer: D) None of these. 2. Nature of revaluation account is A) Personal account. B) Nominal account. C) Real Account. D) None of these. Show Answer Correct Answer: B) Nominal account. 3. In three column Cash Book, when does contra entry occurs? A) Withdrawal of cash from bank. B) Payment to creditors. C) Withdrawal of cash from bank for personal use. D) All of the above. Show Answer Correct Answer: A) Withdrawal of cash from bank. 4. ..... Refers to those liabilities which are to be paid normally with in one year. A) Loan. B) Borrowing. C) Non Current Liability. D) Current liability. Show Answer Correct Answer: D) Current liability. 5. Which As is changed from fixed assets to property plant and Equipment A) 26. B) 4. C) 6. D) 10. Show Answer Correct Answer: D) 10. 6. The Balance on the debit side of the bank column in Cash Book indicates A) Total amount deposited in the Bank. B) Cash at Bank. C) Bank Overdraft. D) Total amount withdrawn from the Bank. Show Answer Correct Answer: C) Bank Overdraft. 7. If the new partner brings his share of goodwill in cash, it will be shared by old partners in A) Old profit sharing ratio. B) Capital Ratio. C) Sacrificing Ratio. D) New profit sharing ratio. Show Answer Correct Answer: C) Sacrificing Ratio. 8. A & B were partners in a firm sharing profits & losses in the ratio of 3:1. With effect from Jan.1, 2019 they agreed to share profit or loss in the ratio of 2:1. Due to change in profit sharing ratio, B's gain or sacrifice will be A) Gain 1/12. B) Sacrifice 1/12. C) Sacrifice 1/3. D) Gain 1/3. Show Answer Correct Answer: A) Gain 1/12. 9. The assets that can be easily converted into cash within a short period, i.e., 1 year or less are known as A) Current assets. B) Investments. C) Fixed assets. D) Intangible assets. Show Answer Correct Answer: A) Current assets. 10. Paid Cash for water bill A) Cash (DR) Water bill (CR). B) Water Bill (CR) Cash (CR). C) Utilities Expense (DR) Cash (CR). D) Both are debits. Show Answer Correct Answer: C) Utilities Expense (DR) Cash (CR). 11. HOW MANY PARTS DOES A BILL OF EXCHANGE? A) 3. B) 4. C) 2. D) None of above. Show Answer Correct Answer: A) 3. 12. The liability of members is only limited to the value of shares held by them. this is ..... A) Limited liability. B) Liability limited by shares. C) Liability at will. D) Unlimited liability. Show Answer Correct Answer: A) Limited liability. 13. Firm incurs loss int. Captial will be provided A) True. B) False. Show Answer Correct Answer: B) False. 14. Ascertain the accounting equation when Mr X started business with cash Rs. 1, 00, 000 A) 1, 00, 000 = 0 + 0. B) 1, 00, 000 = 1, 00, 000 + 0. C) 0 = 0 + 1, 00, 000. D) 1, 00, 000 = 0 + 1, 00, 000. Show Answer Correct Answer: D) 1, 00, 000 = 0 + 1, 00, 000. 15. Capital permanently withdrawn comes in which account A) Capital. B) Current. C) Both. D) None. Show Answer Correct Answer: A) Capital. 16. Which of following is not an intangible assets? A) Furniture. B) Trade marks. C) Patents. D) Goodwill. Show Answer Correct Answer: A) Furniture. 17. Which of the following is correct with respect to debentures A) They can be issued on credit. B) They can be issued for consideration other than cash. C) They cannot be issued as collateral security. D) They can be issued partly on credit and partly in cash. Show Answer Correct Answer: B) They can be issued for consideration other than cash. 18. Equity shares of Rs 10 each were issued at 8 % premium to the promoter of a company for their services. Which account will be debited? A) SPR a/c. B) Cash a/c. C) Goodwill a/c. D) Share capital a/c. Show Answer Correct Answer: C) Goodwill a/c. 19. New partner can be admitted into partnership A) With the consent of any one partner. B) With the consent of majority of partners. C) With the consent of all the partners. D) With the consent of two third of old partners. Show Answer Correct Answer: C) With the consent of all the partners. 20. If a shareholder does not pay his dues on allotment, for the amount due, there will be A) Credit balance in the share allotment account. B) Debit balance in the share forfeiture account. C) Credit balance in the shares forfeiture account. D) Debit balance in the shares allotment account. Show Answer Correct Answer: D) Debit balance in the shares allotment account. 21. Preliminary expenses include A) Exp. incurred on preparation & printing of various documents. B) Duty payable on authorised capital. C) Cost of preliminary expenses. D) Stamp duty & registration fee. E) All of the above. Show Answer Correct Answer: E) All of the above. 22. Contingent liablities will be recorded in A) Balancesheet asset. B) Trading account. C) Balancesheet liablities. D) Profit and loss account. Show Answer Correct Answer: C) Balancesheet liablities. 23. Ram and Shyam are partners in the ratio of 3:2. Before profit distribution, ' Ram is entitled to 5% commission of the net profit (after charging such commission). Before charging commission, firm's profit was ₹ 42, 000. Shyam's share in profit will be: A) 16000. B) 24000. C) 16400. D) 26000. Show Answer Correct Answer: A) 16000. 24. A& B are partners in a firm. A's Caoital is ₹ 70, 000 & B's Capital is ₹ 50, 000. Firm's profit is ₹ 60, 000. A's share in profit will be: A) ₹ 30, 000. B) ₹ 25, 000. C) ₹ 20, 000. D) ₹ 35, 000. Show Answer Correct Answer: A) ₹ 30, 000. 25. Commercial organization is involved in ..... goods and services A) Service. B) Distribution and exchange. C) Production. D) Consumption. Show Answer Correct Answer: B) Distribution and exchange. 26. ..... in the value of ....., ..... in the amount of ..... is debited to ..... account- A) Reduction, liabilities, decrease, assets, revaluation. B) Increase, assets, decrease, liabilities, partners' capital. C) Decrease, assets, increase, liabilities, revaluation. D) Increase, liabilities, increase, assets, revaluation. Show Answer Correct Answer: C) Decrease, assets, increase, liabilities, revaluation. 27. Which of the Following is False A) Debenture is a form of public borrowings. B) It is customary to prefix debentures with the agreed rate of interest. C) Debenture interest is a charge against profits. D) The issue price and redemption value of debentures cannot differ. Show Answer Correct Answer: D) The issue price and redemption value of debentures cannot differ. 28. Which of the following is the most relevant accounting information for taxation authorities? A) Cash balance of the firm. B) Book value of the fixed assets. C) Credit sales of the year. D) Profit generated during the year. Show Answer Correct Answer: D) Profit generated during the year. 29. The analysis of actual movement of money inflow and outflow in an organisation is called ..... analysis A) Ratio Analysis. B) Comparative statement analysis. C) Common size statement analysis. D) Cash flow analysis. Show Answer Correct Answer: D) Cash flow analysis. ← PreviousRelated 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