New ! Accountancy MCQ Practise Tests

All Chapter 1 Marks

12th Standard

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Accountancy

Time : 00:30:00 Hrs
Total Marks : 40
    Answer All The Following Question:
    40 x 1 = 40
  1. Which of the following items relating to bills payable is transferred to total creditors account?

    (a)

    Opening balance of bills payable

    (b)

    Opening balance of bills payable

    (c)

    Bills payable accepted during the year

    (d)

    Cash paid for bills payable

  2. The amount of credit sales can be computed from

    (a)

    Total debtors account

    (b)

    Total creditors account

    (c)

    Bills receivable account 

    (d)

    Bills payable account

  3. If opening capital Rs. 1,000 and closing capital Rs. 2000. Assuming no drawings during the accounting period, calculated the net income or loss for the period

    (a)

    Rs.1,000 net income

    (b)

    Rs.1,000 net loss

    (c)

    Rs.2,000 net income

    (d)

    Rs.2,000 net loss

  4. A firm has liabilities is Rs.50,000 and Capital is Rs.25,000. Then its assets is ______________

    (a)

    Rs.1,00,000

    (b)

    Rs.25,000

    (c)

    Rs.50,000

    (d)

    Rs.75,000

  5. Which of the following should not be recorded in the income and expenditure account?

    (a)

    Sale of old news papers

    (b)

    Loss on sale of asset

    (c)

    Honorarium paid to the secretary

    (d)

    Sale proceeds of furniture

  6. There are 500 members in a club each paying Rs.100 as annual subscription. Subscription due but not received for the current year is Rs.200; Subscription received in advance is Rs.300.Find out the amount of subscription to be shown in the income and expenditure account

    (a)

    Rs.50,000

    (b)

    Rs.50,200

    (c)

    Rs.49,900

    (d)

    Rs.49,800

  7. _______items will be recorded in income and expenditure account

    (a)

    Capital

    (b)

    Nominal

    (c)

    Expense

    (d)

    Revenue

  8. A gift made to a not-for-profit organization by a will, is called________

    (a)

    Subscription

    (b)

    Life membership fee

    (c)

    Legacy

    (d)

    Donations

  9. When fixed capital method is adopted by a partnership firm, which of the following items will appear in capital account?

    (a)

    Additional capital introduced

    (b)

    Interest on capital

    (c)

    Interest on drawings

    (d)

    Share of profit

  10. When a partner withdraws regularly a fixed sum of money at the middle of every month, period for which interest is to be calculated on the drawings on an average is

    (a)

    5.5 months

    (b)

    6 months

    (c)

    12 months

    (d)

    6.5 months

  11. Which of the following method, the capital of the partners is not altered and it remains generally fixed?

    (a)

    Fixed capital method

    (b)

    Fluctuating capital method

    (c)

    Both 'a' and 'b'

    (d)

    None of these

  12. Match List I with List II and Select the Correct Answer using the Codes given below

      List I   List II
    (i) Remuneration to partners 1. Section 13(c)
    (ii) Profit Sharing ratio 2. Section 13(d)
    (iii) Interest on capital 3. Section 13(b)
    (iv) Interest on loan 4. Section 13(a)
    (a)
    (i) (ii) (iii) (iv)
    1 2 3 4
    (b)
    (i) (ii) (iii) (iv)
    4 3 2 1
    (c)
    (i) (ii) (iii) (iv)
    3 4 2 1
    (d)
    (i) (ii) (iii) (iv)
    2 1 4 3
  13. Super profit is the difference between

    (a)

    Capital employed and average profit

    (b)

    Assets and liabilities

    (c)

    Average profit and normal profit

    (d)

    Current year’s profit and average profit

  14. When the average profit is Rs.25,000 and the normal profit is Rs.15,000, super profit is

    (a)

    Rs.25,000

    (b)

    Rs.5,000

    (c)

    Rs.10,000

    (d)

    Rs.15,000

  15. Goodwill is to be valued when

    (a)

    amalgamation takes place

    (b)

    a partner is admitted

    (c)

    one company takes over another company

    (d)

    all of the above

  16. Capital employed at the end the year is Rs. 74,20,000 profit earned Rs. 20,000. Average capital employed is__________.

    (a)

    Rs. 4,20,000

    (b)

    Rs. 4,60,000

    (c)

    Rs. 4,40,000

    (d)

    Rs. 4,00,000

  17. On revaluation, the increase in the value of assets leads to

    (a)

    Gain

    (b)

    Loss

    (c)

    Expense

    (d)

    None of these

  18. Match List I with List II and select the correct answer using the codes given below:

    List I List II
    (i) Sacrificing ratio 1. Investment fluctuation fund
    (ii) Old profit sharing ratio 2. Accumulated profit
    (iii) Revaluation Account 3. Goodwill
    (iv) Capital Account 4. Unrecorded liability
    (a)
    (i) (ii) (iii) (iv)
    1 2 3 4
    (b)
    (i) (ii) (iii) (iv)
    3 2 4 1
    (c)
    (i) (ii) (iii) (iv)
    4 3 2 1
    (d)
    (i) (ii) (iii) (iv)
    3 1 4 2
  19. In the revaluation account an increase in the value of land and building

    (a)

    Debit side

    (b)

    Credit side

    (c)

    Credit side of goodwill A/c

    (d)

    Does not appear at all

  20. Goodwill is a(n):

    (a)

    Tangible Fixed Assets

    (b)

    Tangible Current Assets

    (c)

    Intangible Fixed Assets

    (d)

    Intangible Current Assets

  21. A partner retires from the partnership firm on 30th June. He is liable for all the acts of the firm up to the

    (a)

    End of the current accounting period

    (b)

    End of the previous accounting period

    (c)

    Date of his retirement

    (d)

    Date of his final settlement

  22. At the time of retirement of a partner, determination of gaining ratio is required

    (a)

    To transfer revaluation profit or loss

    (b)

    To distribute accumulated profits and losses

    (c)

    To adjust goodwill

    (d)

    None of these

  23. The firm is reconstituted and other partners continue the partnership firm with a new

    (a)

    Contract

    (b)

    agreement

    (c)

    start business

    (d)

    none of these

  24. A,B and C are partners sharing profits and losses in the ratio of ½, 3/10 and 1/5. B retires from the firm. A and C decide to share the future profits and losses in 3:2. Calculate gaining ratio:

    (a)

    1:2

    (b)

    3:2

    (c)

    2:3

    (d)

    None of these

  25. Match the pair and identify the correct option

    (1) Under subscription (i) Amount prepaid for calls
    (2) Over subscription (ii) Subscription above the offered shares
    (3) Calls in arrear (iii) Subscription below the offered shares
    (4) Calls in advance (iv) Amount unpaid on calls
    (a)
    (1) (2) (3) (4)
    (i) (ii) (iv) (iv)
    (b)
    (1) (2) (3) (4)
    (iv) (iii) (ii) (i)
    (c)
    (1) (2) (3) (4)
    (iii) (ii) (iv) (i)
    (d)
    (1) (2) (3) (4)
    (iii) (iv) (i) (ii)
  26. If a share of Rs.10 on which Rs.8 has been paid up is forfeited. Minimum reissue price is

    (a)

    Rs.10 per share

    (b)

    Rs.8 per share

    (c)

    Rs.5 per share

    (d)

    Rs.2 per share

  27. When a shareholder fails to pay the amount due on allotment or on calls, the amount remaining unpaid is known as

    (a)

    calls in advance

    (b)

    calls in arrears

    (c)

    under subscription

    (d)

    over subscription

  28. Holders of preference shares will have a right to vote if the dividend remains in arrears for a period not less than ___________

    (a)

    2 years

    (b)

    3 years

    (c)

    6 years

    (d)

    None of the above

  29. Which of the following statements is not true?

    (a)

    Notes and schedules also form part of financial statements

    (b)

    The tools of financial statement analysis include common-size statement

    (c)

    Trend analysis refers to the study of movement of figures for one year

    (d)

    The common–size statements show the relationship of various items with somecommon base, expressed as percentage of the common base

  30. The term ‘fund’ refers to

    (a)

    Current liabilities

    (b)

    Working capital

    (c)

    Fixed assets

    (d)

    Non-current assets

  31. Financial statements are prepared based on

    (a)

    past data

    (b)

    future cost

    (c)

    terminal cost

    (d)

    historical cost

  32. ___________ includes manufacturing account and trading and profit and loss account.

    (a)

    Income statement

    (b)

    Expenditure statement

    (c)

    Financial statement

    (d)

    None of these

  33. Current assets excluding inventory and prepaid expenses is called

    (a)

    Reserves

    (b)

    Tangible assets

    (c)

    Funds

    (d)

    Quick assets

  34. Cost of revenue from operations Rs. 3,00,000; Inventory in the beginning of the year Rs. 60,000; Inventory at the close of the year Rs. 40,000. Inventory turnover ratio is

    (a)

    2 times

    (b)

    3 times

    (c)

    6 times

    (d)

    8 times

  35. _____ is an overall measure of profitability of a business concern.

    (a)

    Return on investment

    (b)

    Conversion period

    (c)

    None of these

    (d)

    Average period

  36. _____________ Assets = Total current assets - (Stock + Prepaid expenses)

    (a)

    Current

    (b)

    Liquid

    (c)

    Fixed

    (d)

    Tangible

  37. Contra voucher is used for

    (a)

    Master entry

    (b)

    Withdrawal of cash from bank for office use

    (c)

    Reports

    (d)

    Credit purchase of assets

  38. Which is not the default group in Tally?

    (a)

    Suspense account

    (b)

    Outstanding expense

    (c)

    Sales account

    (d)

    Investments

  39. Match List I with List II and Select the Correct Answer using the Codes given below.

    List I List II
    (i) CAS 1. Accounting Information System
    (ii) MIS 2. Computerised Information System
    (iii) AIS 3. Management Information System
    (iv) CIS 4. Computerised Accounting System
    (a)
    (i) (ii) (iii) (iv)
    3 4 2 1
    (b)
    (i) (ii) (iii) (iv)
    4 3 1 2
    (c)
    (i) (ii) (iii) (iv)
    1 2 3 4
    (d)
    (i) (ii) (iii) (iv)
    2 1 4 3
  40. ___________ shows the company selected under List of Selected Companies on the left pane

    (a)

    Tally. ERP 9

    (b)

    Microsoft

    (c)

    Gate of Tally

    (d)

    None of these

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