This quiz works best with JavaScript enabled. Home > Finance > Accounting > Accountancy > Accountancy – Quiz 5 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Accountancy Quiz 5 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Received Rs 4, 900 from Garima in full settlement of Rs 5, 000. Posting of Rs 100 will be made to the: A) Credit side of Garima's A/c. B) Debit side of Garima's A/c. C) Credit side of Discount A/c. D) Debit side of Discount A/c. Show Answer Correct Answer: D) Debit side of Discount A/c. 2. The single column cash book records all ..... transactions of the business A) Cash. B) Bank. C) Cash and bank both. D) Any of cash or bank. E) Savings bank. Show Answer Correct Answer: A) Cash. 3. In case of special crossing and the payment can be made only to the ..... whose name has been written between the two lines A) Person. B) Bank. C) Bank and person. D) None of them. E) None of them. Show Answer Correct Answer: A) Person. 4. The persons to whom money is owing by the firm are termed as ..... A) Debtors. B) Assets. C) Creditors. D) Business men. Show Answer Correct Answer: C) Creditors. 5. Purchasing a building A) Operating. B) Investing. C) Financing. D) None of above. Show Answer Correct Answer: B) Investing. 6. Riti and Smriti are friends. They have just completed their class 10 boards. They're planning to start a business in partnership. Can they do so? A) No. B) Yes. Show Answer Correct Answer: A) No. 7. All the agreed terms, conditions and procedure of partnership business is written in ..... A) Partnership Deed. B) Articles. C) Prospectus. D) Statement. Show Answer Correct Answer: A) Partnership Deed. 8. Book-keeping and accounting A) Means same and are used interchangeably. B) Does not mean the same and are not used interchangeably. C) Means both (a) and (b). D) None of the above. Show Answer Correct Answer: B) Does not mean the same and are not used interchangeably. 9. When recording the receipt of cash from a customer who had previously purchased goods on credit, which accounts are affected in the ledger? A) Debit:Cash, Credit:Revenue. B) Debit:Sales, Credit:Cash. C) Debit:Cash, Credit:Accounts Receivable. D) Debit:Accounts Receivable, Credit:Sales. Show Answer Correct Answer: C) Debit:Cash, Credit:Accounts Receivable. 10. Credit purchase of furniture shall be recorded in- A) Purchase book. B) Journal book. C) Cash-book. D) None of these. Show Answer Correct Answer: B) Journal book. 11. According to Profit and Loss Account, the net profit for the year is ₹ 4, 20, 000. Salary of a partner is ₹ 5, 000 per month and the commission of another partner is ₹ 10, 000. The interest on drawings of partners is ₹ 4, 000. The net profit as per Profit and Loss A) 401000. B) 409000. C) 346000. D) 354000. Show Answer Correct Answer: D) 354000. 12. FINANCIAL STATEMENT COMPRISES OF A) INCOME STATEMENT. B) POSITION STATEMENT. C) BOTH. D) NONE. Show Answer Correct Answer: C) BOTH. 13. Profit on redemption of debentures is transferred to which account. A) Debenture Redemption Reserve A/c. B) DRI A/c. C) Capital Reserve A/c. D) Reserve capital A/c. Show Answer Correct Answer: C) Capital Reserve A/c. 14. A liability is ..... A) Obligation of a business as a result of a past transaction. B) Something a business has to pay because of a past event. C) Current obligation of a business as a result of a past transaction. D) None of above. Show Answer Correct Answer: C) Current obligation of a business as a result of a past transaction. 15. Accounting starts ..... A) Where financial statements ends. B) Where analysis of financial statement ends. C) Where book keeping ends. D) Where Accountancy ends. Show Answer Correct Answer: C) Where book keeping ends. 16. Accounting is required in A) Business activities. B) Non-Business activities. C) Non-Governmental Organisation. D) All of the above. Show Answer Correct Answer: D) All of the above. 17. Attributes of Accounting A) Identification of financial transactions. B) Recording. C) Both A and. B. D) None of the above. Show Answer Correct Answer: C) Both A and. B. 18. Rules of debit for real account is A) Debit the receiver. B) Debit all expenses and losses. C) Debit what comes in. D) Debit the giver. Show Answer Correct Answer: C) Debit what comes in. 19. Unrecorded Asset taken over by a Partner at the time of dissolution of the firm is ..... to his Capital Account. A) Credited. B) Debited. Show Answer Correct Answer: B) Debited. 20. For depositing cash/cheques in the bank account, which form has to be filled? A) Withdrawal slip. B) Debit note. C) Credit note. D) Pay-in-slip. E) Receipt. Show Answer Correct Answer: A) Withdrawal slip. 21. Obligations (amounts owed) are reported on the balance sheet and are referred to as ..... A) Liabilities. B) Assets. C) Debt. D) Equity. Show Answer Correct Answer: A) Liabilities. 22. Which of the following is not an error of principle? A) Purchase of machinery debited to purchase account. B) Repairs on the overhauling of existing machinery debited to machinery account. C) Sale of old furniture credited to sales account. D) Cash recd. from mohan debited to sohan. Show Answer Correct Answer: D) Cash recd. from mohan debited to sohan. 23. On the admission of a new partner A) Old firm is dissolved. B) Old partnership is dissolved. C) Both old partnership and firm are dissolved. D) Neither partnership nor firm is dissolved. Show Answer Correct Answer: B) Old partnership is dissolved. 24. ..... is created out of capital profits. A) Reserve capital. B) Capital reserve. C) Called up capital. D) Subscribed capital. Show Answer Correct Answer: B) Capital reserve. 25. Adam's son Bruce just completed his MBA course. Now he is planning to continue his father's business. Is this partnership? if no, Then what type is it? A) Yes, partnership. B) No, small business. C) No, company form of business. D) No, family business. Show Answer Correct Answer: D) No, family business. 26. Process of recording of transaction is also called? A) Posting. B) Journalising. C) Reporting. D) Summarising. Show Answer Correct Answer: B) Journalising. 27. Profit sharing ratio A) Sec. 13. B) Sec 13 b. Show Answer Correct Answer: B) Sec 13 b. 28. If the old profit sharing ratio is more than the new profit sharing ratio of a partners, the difference is called A) Capital ratio. B) Sacrificing ratio. C) Gaining ratio. D) None of these. Show Answer Correct Answer: B) Sacrificing ratio. 29. Who is considered to be the internal user of the financial information? A) Employee. B) Creditor. C) Government. D) Customer. Show Answer Correct Answer: A) Employee. 30. Company may allot shares to underwiters to pay their commission. the Entry will be A) Underwriting commission A/c dr.To Underwriters A/c. B) Vendor A/c Dr.to Share Capital A/c. C) No entry is required. D) Either of the Above. Show Answer Correct Answer: A) Underwriting commission A/c dr.To Underwriters A/c. ← PreviousNext →Related QuizzesAccounting QuizzesFinance QuizzesAccountancy Quiz 1Accountancy Quiz 2Accountancy Quiz 3Accountancy Quiz 4Accountancy Quiz 6Accountancy Quiz 7Accountancy Quiz 8Accountancy Quiz 9 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books