This quiz works best with JavaScript enabled. Home > Finance > Accounting > Accountancy > Accountancy – Quiz 6 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Accountancy Quiz 6 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. A journal entry in which two or more accounts are debited or credited, are known as? A) Double Entry. B) Multi Entry. C) Additional Entry. D) Compound Entry. Show Answer Correct Answer: D) Compound Entry. 2. When number of shares applied for is more than the that offered for subscription is called A) Over subscription. B) Shareholders fund. C) Under Subscription. D) Pro rata. Show Answer Correct Answer: A) Over subscription. 3. Which of the following is not a characteristic of accounting A) Analysis. B) Recording non-monetary transactions. C) Classifying. D) Summarising. Show Answer Correct Answer: B) Recording non-monetary transactions. 4. A PERSON TO WHOM FIRM HAS SOLD GOODS ON CREDIT IS KNOWN AS A) LENDER. B) CREDITOR. C) DEBTORS. D) BAD DEBTS. Show Answer Correct Answer: C) DEBTORS. 5. Wages and salaries will be recorded in A) Profit and loss account. B) Balancesheet. C) Trading account debit side. D) Trading account credit side. Show Answer Correct Answer: C) Trading account debit side. 6. Which of the following transactions will not result into flow of cash A) Issue of equity shares. B) Purchase of machinery. C) Cash deposited into bank. D) Redemption of 9% debentures. Show Answer Correct Answer: C) Cash deposited into bank. 7. Example of Personal accounts? A) Cash. B) Bank. C) Salary. D) Outstanding salary. Show Answer Correct Answer: D) Outstanding salary. 8. Amount invested by proprietor in business A) Investment. B) Capital. C) Drawing. D) None of these. Show Answer Correct Answer: B) Capital. 9. Arrangement of assets and liabilities in the balancesheet is known as A) Final accounts. B) Accounting. C) Marshalling of balancesheet. D) Posting of entries. Show Answer Correct Answer: C) Marshalling of balancesheet. 10. The information provided in the annual financial statements of an enterprise pertain to- A) Individual business enterprise. B) Business industries. C) The economy as a whole. D) None of the above. Show Answer Correct Answer: A) Individual business enterprise. 11. Revaluation A/C is a A) Real A/c. B) Impersonal A/c. C) Personal A/c. D) Nominal A/c. Show Answer Correct Answer: D) Nominal A/c. 12. Withdraw goods for personal use affects on A) Cash and drawings. B) Cash only. C) Cash and capital. D) Capital only. Show Answer Correct Answer: C) Cash and capital. 13. Closing stock overvalued A) Deducted from current year. B) Added to current year. C) No effect. D) None of above. Show Answer Correct Answer: A) Deducted from current year. 14. Interest on capital A) 13 a. B) 13 c. Show Answer Correct Answer: B) 13 c. 15. Cash received from Kajal Rs. 36, 000 after allowing her discount @10%. Amount debited to discount account will be: A) Rs. 40, 000. B) Rs. 3, 600. C) Rs. 4, 400. D) Rs. 4, 000. Show Answer Correct Answer: D) Rs. 4, 000. 16. The old partners share all the accumulated profit & reserves in their A) New profit sharing ratio. B) Old profit sharing ratio. C) Capital ratio. D) None of above. Show Answer Correct Answer: B) Old profit sharing ratio. 17. When realisation expenses are paid by the firm on behalf of partner, expenses are debited to A) Partner's capital account. B) Realisation account. C) Bank account. D) Partners' loan account. Show Answer Correct Answer: A) Partner's capital account. 18. Amount of Securities Premium Reserve may be used only for A) Writing off preliminary expenses. B) Buy back of its own shares. C) Issuing fully paid bonus shares. D) Writing off discount allowed on issue of shares or debentures. E) All of the above. Show Answer Correct Answer: E) All of the above. 19. Authorised Capital is also known as (a). (b) (c). (d) A) Nominal Capital. B) Registered Capital. C) Subscribed Capital. D) Both (a) and (b). Show Answer Correct Answer: B) Registered Capital. 20. If the trial balance does not balance, what could be the potential error? A) All debit entries were posted as credit. B) All transactions were recorded accurately. C) Only revenue accounts were included. D) Entry was omitted in both journal and ledger. Show Answer Correct Answer: C) Only revenue accounts were included. 21. Share Capital means A) Raised by issue of shares. B) Claimed by calling the shares. C) Amiunt paid by the shareholders. D) None of above. Show Answer Correct Answer: A) Raised by issue of shares. 22. Name the item out of the following which is shown as short-term provision A) Provision for tax. B) Interest accrued but not due. C) Employees' provident fund. D) Interest accrued and due. Show Answer Correct Answer: A) Provision for tax. 23. Partnership agreement may A) Oral. B) Writing. C) Implied. D) All the above. Show Answer Correct Answer: D) All the above. 24. Is Reserved Capital a part of A) Unsubscribed capital. B) Uncalled capital. C) Subscribed capital. D) Authorized Capital. Show Answer Correct Answer: B) Uncalled capital. 25. GROSS PROFIT=.....-..... A) OPENING STOCK-CLOSING STOCK. B) PURCHASES-SALES. C) SALES-COST. D) NET SALES-COST OF GOODS SOLD. Show Answer Correct Answer: D) NET SALES-COST OF GOODS SOLD. 26. In which year did the Partnership Act passed? A) 1956. B) 1952. C) 1932. D) 1947. Show Answer Correct Answer: C) 1932. 27. Zero Coupon Bonds are Issued A) At Zero interest rate. B) With Specified Rate of Interest. C) Without Specified Rate of Interest. D) None. Show Answer Correct Answer: C) Without Specified Rate of Interest. 28. Business is said to be in a profit when A) Income exceeds expenditure. B) Expenditure exceeds income. C) Income exceeds liability. D) Assets exceed expenditure. Show Answer Correct Answer: A) Income exceeds expenditure. 29. When Goodwill is not purchased Goodwill account can: A) Never be raised in the books. B) Be raised in the books. C) Be partially raised in the books. D) The raised as per the agreement of the partners. Show Answer Correct Answer: A) Never be raised in the books. 30. Which of these claims is FALSE about a balance sheet? A balance sheet ..... A) Explains how the firm's capital has been invested. B) Shows the assets and liabilities of the firm. C) Indicates the strength of the firm's profit margin. D) Is drawn up at a specific point in time. Show Answer Correct Answer: C) Indicates the strength of the firm's profit margin. ← PreviousNext →Related QuizzesAccounting QuizzesFinance QuizzesAccountancy Quiz 1Accountancy Quiz 2Accountancy Quiz 3Accountancy Quiz 4Accountancy Quiz 5Accountancy Quiz 7Accountancy Quiz 8Accountancy Quiz 9 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books