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12th Standard Accounts English Medium Free Online Test 1 Mark Questions 2020 - Part Four

12th Standard

    Reg.No. :
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Accountancy

Time : 00:20:00 Hrs
Total Marks : 20

    Answer all the questions

    20 x 1 = 20
  1. Following are the limitations of incomplete records except _________________

    (a)

    Lack of proper maintenance of records

    (b)

    Difficulty in preparing trial balance

    (c)

    Difficulty in ascertaining true profitability of the business

    (d)

    Suitability

  2. Subscription due but not received for the current year is

    (a)

    An asset

    (b)

    A liability

    (c)

    An expense

    (d)

    An item to be ignored

  3. _______Items will be recorded in the balance sheet

    (a)

    Revenue

    (b)

    Capital

    (c)

    Expense

    (d)

    None of these

  4. Pick the odd one out

    (a)

    Partners share profits and losses equally

    (b)

    Interest on partners’ capital is allowed at 7% per annum

    (c)

    No salary or remuneration is allowed

    (d)

    Interest on loan from partners is allowed at 6% per annum

  5. Capital account will always show credit balance under ________ method.

    (a)

    Partner's current account

    (b)

    Partner's capital account

    (c)

    Both 'a' and 'b'

    (d)

    None of these

  6. Goodwill is _________.

    (a)

    an intangible asset

    (b)

    a fixed asset

    (c)

    realisable

    (d)

    all of the above

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

    (a)

    Gain

    (b)

    Loss

    (c)

    Expense

    (d)

    None of these

  8. ________ ratio is the proportion of the profit which is sacrificed or foregone by the old partners in favour of the new partner.

    (a)

    Old

    (b)

    New

    (c)

    Sacrifice

    (d)

    Agreed

  9. The profit or loss arising therefrom is transferred to the capital accounts of all the partners in the

    (a)

    New profit sharing ratio

    (b)

    Old profit sharing ratio

    (c)

    Gaining ratio

    (d)

    Sacrificing ratio

  10. Capital account of a retiring partner always shows balance:

    (a)

    Credit

    (b)

    Debit

    (c)

    Asset

    (d)

    Liability

  11. When shares are issued for purchase of assets, the amount should be credited to

    (a)

    Vendor’s A/c

    (b)

    Sundry assets A/c

    (c)

    Share capital A/c

    (d)

    Bank A/c

  12. First installment called

    (a)

    application money

    (b)

    allotment money

    (c)

    first call money

    (d)

    final call money

  13. _____ is a voluntary association of persons.

    (a)

    A company

    (b)

    A business

    (c)

    An organisation

    (d)

    None of these

  14. A public issue cannot be kept open for more _____ days.

    (a)

    5

    (b)

    10

    (c)

    20

    (d)

    25

  15. Premium received on issue of shares are shown under the head of ________________ in balance sheet

    (a)

    Reserves & Surplus

    (b)

    Current liabilities

    (c)

    Share capital

    (d)

    Capital Reserves

  16. When figure relating to several years are considered for the purpose of analysis, the analysis is called

    (a)

    Horizontal analysis

    (b)

    Vertical analysis

    (c)

    Trend analysis

    (d)

    Cash flow analysis

  17. The _______________ statements can be compared with those of previous years.

    (a)

    Common-size

    (b)

    Comparative

    (c)

    Both 'a' and 'b'

    (d)

    None of these

  18. Proportion of share holder's funds to total assets is called

    (a)

    Proprietary ratio

    (b)

    Capital gearing ratio

    (c)

    Debt equity ratio

    (d)

    Current ratio

  19. _____ is a mathematical expression of relationship between two related or interdependent items.

    (a)

    Ratio

    (b)

    Cheque

    (c)

    Cash

    (d)

    None of these

  20. _____ indicates the number of times inventory is turned over to make revenue from operations during a particular accounting period.

    (a)

    Inventory turnover ratio

    (b)

    Trade receivable turnover ratio

    (c)

    Trade payables turnover ratio

    (d)

    Fixed assets turnover ratio

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