This quiz works best with JavaScript enabled. Home > Finance > Accounting > Accountancy > Accountancy – Quiz 8 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Accountancy Quiz 8 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. The financial statement that reports the changes in the capital account for a proprietorship for a period of time. A) Statement of Owner's Equity. B) Income Statement. C) Trial Balance. D) Balance Sheet. Show Answer Correct Answer: A) Statement of Owner's Equity. 2. Accounting is referred to as the "language of ..... " A) Accounting. B) Profit. C) Life. D) Business. Show Answer Correct Answer: D) Business. 3. Capital + ..... drawings =net capital recorded in liablities A) Net profit. B) Purchases. C) Gross profit. D) Dividend. Show Answer Correct Answer: A) Net profit. 4. A & B are partners, their firm charges interest on drawing @10%. Be draws 1000 at the beginning of every month. what will be Average period for which IOD will be calculated A) 6. B) 11/2. C) 13/2. D) 12. Show Answer Correct Answer: A) 6. 5. If the owner takes goods from the business for personal use, the account to be credited is:(2017) A) Purchases Account. B) Cash Account. C) Owner Account. D) Bank Account. Show Answer Correct Answer: A) Purchases Account. 6. Ascertain the accounting equation when, purchase goods from Mr Y on credit for Rs. 30, 000 A) 30, 000 = 0 + 30, 000. B) (-) 30, 000 + 30, 000 = 0 + 0. C) 30, 000 = 30, 000 + 0. D) 0 = 30, 000 + (-) 30, 000. Show Answer Correct Answer: C) 30, 000 = 30, 000 + 0. 7. Amount withdrawn by the owner for personal use ..... A) Liability. B) Drawings. C) Asset. D) Capital. Show Answer Correct Answer: B) Drawings. 8. A motor car lost in fire should be debited to:(2019) A) Motor car account. B) Purchases account. C) Drawings account. D) Loss by fire account. Show Answer Correct Answer: D) Loss by fire account. 9. According to which principles, accounting practices should be followed on a horizontal basis from one accounting period to another to achieve compatibility A) Historical cost principles. B) Money measurement principles. C) Consistency principles. D) Going concern principles. Show Answer Correct Answer: C) Consistency principles. 10. A, B and C are partners sharing profits in the ratio of4:3:2 decided to share profits equally. Goodwill of the firm is valued at rupees 10800. In adjusting entry for goodwill: A) A's capital account Cr. 4, 800;B's capital account Cr. 3, 600; C's capital account Cr 2, 400. B) A's capital account Cr 3, 600; B's capital account Cr 3, 600; C's capital account Cr 3, 600. C) A's capital account Dr. 1200; C's capital account Cr 1200. D) A's capital account Cr 1200; C's capital account Dr. 1200. Show Answer Correct Answer: D) A's capital account Cr 1200; C's capital account Dr. 1200. 11. When shares are forfeited, Share Capital Account is debited with A) Nominal values of shares. B) Called-up values of shares. C) Paid-up values of shares. D) Market value of shares. Show Answer Correct Answer: B) Called-up values of shares. 12. ..... ratio is computed at the time by admission of a partner A) Gaining ratio. B) Capitalization. C) Sacrificing ratio. D) None of above. Show Answer Correct Answer: C) Sacrificing ratio. 13. If at the time of admission, there is some unrecorded liability, it will be: A) Debited to Goodwill A/c. B) Debited to Revaluation Account. C) Credited to Revaluation A/c. D) Credited to Partners' Capital A/c. Show Answer Correct Answer: B) Debited to Revaluation Account. 14. Abnormal losses are A) No effect. B) Added to profit. C) Multiplied to profit. D) Deducted from profit. Show Answer Correct Answer: B) Added to profit. 15. Which of the following is known as Principal book of Accounting? A) Ledger. B) Balance sheet. C) Trial balance. D) Journal. Show Answer Correct Answer: A) Ledger. 16. Which of the following is not an asset? A) Loan from K Haris. B) Debtors. C) Buildings. D) Cash balance. Show Answer Correct Answer: A) Loan from K Haris. 17. Monetary measurement can be described as A) Items that can be given a money value are to be recorded in New Zealand Dollars. B) Items that can be given a money value are to be recorded in the currency of the country they have been bought from. Show Answer Correct Answer: A) Items that can be given a money value are to be recorded in New Zealand Dollars. 18. A and B were partners in the firm sharing profits or losses in the ratio of 3:5. with effect from 1st April 2019 they decided to share profits or losses equally. Due to change in profit sharing ratio, A's gain or sacrifice will be: A) Gain 3/8. B) Gain 1/8. C) Sacrifice 1/8. D) Sacrifice 3/8. Show Answer Correct Answer: B) Gain 1/8. 19. Return of goods by a customer is recorded in ..... A) Purchase book. B) Purchase return book. C) Sales return book. D) Sales book. Show Answer Correct Answer: C) Sales return book. 20. On dissolution of a firm out of the proceeds received from the sale of assets who will be paid last of all A) Realisation account. B) No entry. C) Partner capital account. D) Realisation account no account. Show Answer Correct Answer: C) Partner capital account. 21. WHICH OF FOLLOWING IS NOT AN EXTERNAL USER OF ACCOUNTING INFORMATION A) OWNERS. B) GOVERNMENT. C) RESEARCHERS. D) TAX AUTHORITIES. Show Answer Correct Answer: A) OWNERS. 22. The rate of interest allowed on loans advanced A) 5%. B) 12%. C) 8%. D) 6%. Show Answer Correct Answer: D) 6%. 23. Drawings of the partners are: A) Debited to profit and loss A/c. B) Credited to profit and loss A/c. C) Debited to capital A/c. D) Credited to capital A/c. Show Answer Correct Answer: C) Debited to capital A/c. 24. Statement of affairs is a A) Statement of income and expenditure. B) Statement of assets and liabilities. C) Summary of cash transactions. D) Summary of credit transactions. Show Answer Correct Answer: B) Statement of assets and liabilities. 25. Merchandise inventory includes..... A) Liquid assets. B) Tangible assets. C) Intangible fixed assets. D) Debt. Show Answer Correct Answer: A) Liquid assets. 26. Posting is the process of transferring information from the journal to the ledger accounts. A) False. B) True. Show Answer Correct Answer: B) True. 27. Assets = Liability + ..... A) Bank Overdraft. B) Creditors. C) Capital. D) Bank Loan. Show Answer Correct Answer: C) Capital. 28. Which of the following best describes a trial balance? A) Shows the financial position of a business. B) It is a special account. C) Shows all the entries in the books. D) It is a list of balances on the books. Show Answer Correct Answer: D) It is a list of balances on the books. 29. The type or branch of accounting that generates reports for the use of external parties such as creditors, investors and government agencies is known as: A) Tax Accounting. B) Forensic Accounting. C) Financial Accounting. D) Managerial Accounting. Show Answer Correct Answer: C) Financial Accounting. 30. The financial condition of a business refers to its financial strength. A) True. B) False. Show Answer Correct Answer: A) True. ← PreviousNext →Related QuizzesAccounting QuizzesFinance QuizzesAccountancy Quiz 1Accountancy Quiz 2Accountancy Quiz 3Accountancy Quiz 4Accountancy Quiz 5Accountancy Quiz 6Accountancy Quiz 7Accountancy Quiz 9 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books