This quiz works best with JavaScript enabled. Home > Finance > Accounting > Accountancy > Accountancy – Quiz 7 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Accountancy Quiz 7 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. In the absence of Partnership Deed, the interest is allowed on partner's capital: A) 5% p.a. B) 6% p.a. C) 5% p.a. D) No interest is allowed. Show Answer Correct Answer: B) 6% p.a. 2. Debenture holders are ..... of the Company A) Owners. B) Debtors. C) Customers. D) Creditors. Show Answer Correct Answer: D) Creditors. 3. Discount allowed to Pirbhat will be credited to:(2016) A) Pirbhat's account. B) Cash account. C) Discount allowed account. D) None of these. Show Answer Correct Answer: D) None of these. 4. What is the purpose of preparing trading account? A) To calculate net profit. B) To calculate gross profit/(loss). C) To calculate net sales. D) To calculate cost of sales. Show Answer Correct Answer: B) To calculate gross profit/(loss). 5. The persons who still owe some amount to the business are termed as ..... A) Business men. B) Creditors. C) Liabilities. D) Debtors. Show Answer Correct Answer: D) Debtors. 6. Salary paid to partners should be: A) Debited to his current A/c. B) Credited to his capital A/c. C) Credited to profit & loss appropriation A/c. D) None of these. Show Answer Correct Answer: B) Credited to his capital A/c. 7. Imprest amount- ₹ 500. What will be the amount of re-imbursement if following expenses were incurred by the petty cashier during the month-Telephone = ₹ 150, Tiffin = ₹ 50, small Repairs = ₹ 30 general expenses = ₹ 100 A) 300. B) 270. C) 170. D) 330. Show Answer Correct Answer: D) 330. 8. Accounts that are reported on the balance sheet, and whose balances are carried over from one period to the next are called A) Real account. B) Nominal account. C) Income statement. D) Not the answer above. Show Answer Correct Answer: A) Real account. 9. Objectives of Accounting A) Maintaining Accounting Records. B) Determining profit or loss. C) Facilitating Management. D) Protecting Business. E) All of the above. Show Answer Correct Answer: E) All of the above. 10. Purchase of goods from X for cash should be credited to ..... A) X. B) Purchase. C) Cash. D) Goods. Show Answer Correct Answer: C) Cash. 11. General Reserve is recorded in ..... side of ..... A) Credit, Trading Account. B) Debit, Trading Account. C) Assets, Balance Sheet. D) Liability, Balance Sheet. Show Answer Correct Answer: D) Liability, Balance Sheet. 12. Which of these are not the method of financial statement analysis? A) Trend Analysis. B) Ratio Analysis. C) Capitalisation Method. D) Comparative Analysis. Show Answer Correct Answer: C) Capitalisation Method. 13. Accounting measures the transactions in terms of- A) Quantity measurement Unit. B) Average measurement unit. C) Common measurement unit. D) Differential measuring unit. Show Answer Correct Answer: C) Common measurement unit. 14. What type of agreement is used to form a partnership business? A) Written agreement. B) Oral agreement. C) Written or oral agreement. D) None of them. Show Answer Correct Answer: C) Written or oral agreement. 15. Which of the following factors affect goodwill? (a) Favourable Location (b) Efficiency of Management (c) Market situation (d) All of these A) Favourable Location. B) Efficiency of Management. C) Market situation. D) All of these. Show Answer Correct Answer: D) All of these. 16. In petty cash Book, the system followed: A) Accrual System. B) Imprest System. C) Cash System. D) None of these. Show Answer Correct Answer: B) Imprest System. 17. Securities premium received on issue of shares is credited to securities premium reserve account A) False. B) True. Show Answer Correct Answer: B) True. 18. The order that you would prepare your financial statements would be ..... A) Statement of Owner's Equity, Income Statement, Balance Sheet. B) Work Sheet, Balance Sheet, Income Statement, Statement of Owner's Equity. C) Income Statement, Statement of Owner's Equity, Balance Sheet. D) Statement of Owner's Equity, Balance Sheet, Income Statement, Work Sheet. Show Answer Correct Answer: C) Income Statement, Statement of Owner's Equity, Balance Sheet. 19. A and B are partners sharing profits in the ratio 2:3, they admit C as a partner for 1/4 share, the sacrificing ratio of a and b will be A) 1:1. B) 3:2. C) 2:3. D) 2:1. Show Answer Correct Answer: C) 2:3. 20. The calculation and interpretation of financial ratios A) Financial Ratio. B) Ratio Analysis. C) Money Ratio. D) Cash Ratio. Show Answer Correct Answer: B) Ratio Analysis. 21. Which type of company can issue share to public A) Public. B) Private. C) One person company. D) None of these. Show Answer Correct Answer: A) Public. 22. Current Ratio of 'Jayanti Ltd.' is 3:2. The Finance Manager wants to maintain it at 2:1. Following options are available:(i) He can repay Trade payables. (ii) He can discharge Bills Payable. (iii) He can purchase Stock-in-Trade for cash. (iv) He can sell the Fixed Asset (Book value ' 10, 000) for ' 9, 000. A) (i) is correct. B) (ii) is correct. C) (i) and (iii) are correct. D) (i), (ii) and (iv) are correct. Show Answer Correct Answer: D) (i), (ii) and (iv) are correct. 23. Payment of Dividend will be received first by A) Cumulative preference shareholders. B) Preference shareholders. C) Debentures. D) Equity shareholders. Show Answer Correct Answer: B) Preference shareholders. 24. What is the journal entry for creating Reserve? A) Reserve a/c-dr to P & L appropriation a/c. B) P & L app a/c to Reserve a/c. C) Profit & Loss a/c-dr to P & L app a/c. D) P & L app a/c-dr to P & L a/c. Show Answer Correct Answer: B) P & L app a/c to Reserve a/c. 25. P, Q & R are partners in 3:2:1. R is guaranteed that his share of profit will not be less than ₹ 70, 000. Any deficiency will be borne by P & Q in the ratio of 2:1. Firm's profit was ₹ 2, 40, 000. Share of P will be: A) ₹ 1, 00, 000. B) ₹ 1, 20, 000. C) ₹ 1, 02, 000. D) ₹ 1, 10, 000. Show Answer Correct Answer: A) ₹ 1, 00, 000. 26. A person who owes money to firm against goods sold is called a A) Creditor. B) Debtor. C) Both (a) And. D) None of these. Show Answer Correct Answer: B) Debtor. 27. A machine is purchased on 1st April 2018 for 80, 000, Expenses incurred on its installation is Rs:20, 000. The residual value at the end of its expected usefull life of 4 years is estimated at Rs:10, 000. The amount of depreciation under straight line method, for the year ended on 31ts march 2019 will be A) 20, 000. B) 13, 125. C) 17, 500. D) 22, 500. Show Answer Correct Answer: D) 22, 500. 28. Sold goods for cash of the list price of Rs 8, 000 at 10% trade discount and 3% cash discount. Posting will be made in discount A/c: A) Rs 240 on debit side. B) Rs 240 on credit side. C) Rs 216 on debit side. D) Rs 216 on Credit side. Show Answer Correct Answer: C) Rs 216 on debit side. 29. Copyrights, Patents, and Trademarks are examples of A) Fixed assets. B) Current assets. C) Noncurrent assets. D) Intangible assets. Show Answer Correct Answer: D) Intangible assets. 30. X, Y and z are partners in a firm sharing profits and losses in the ratio of 5:3:2. The partners decided to share future profits and losses in the ratio of 3:2:1. Each partners gain or sacrifice due to change in the ratio will be: A) X gain 1/30;Y nil; Z sacrifice 1/30. B) X nil; Y sacrifice 1/30; Z gain 1/30. C) X nil; Y gain 1/30; Z sacrifice 1/30. D) X sacrifice 1/30; Y gain 1/30; Z nil. Show Answer Correct Answer: C) X nil; Y gain 1/30; Z sacrifice 1/30. ← PreviousNext →Related QuizzesAccounting QuizzesFinance QuizzesAccountancy Quiz 1Accountancy Quiz 2Accountancy Quiz 3Accountancy Quiz 4Accountancy Quiz 5Accountancy Quiz 6Accountancy Quiz 8Accountancy Quiz 9 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books