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12th Standard Accounts English Medium Free Online Test One Mark Questions with Answer Key 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. The excess of assets over liabilities is

    (a)

    Loss

    (b)

    Cash

    (c)

    Capital

    (d)

    Profit

  2. Companies cannot keep books on single entry system because of

    (a)

    tax properties

    (b)

    legal provisions

    (c)

    both (a) and (b)

    (d)

    None of these

  3. Which one of the following accounts is supposed to be used to get the figure of credit purchase made during the current accounting period?

    (a)

    Debtors account

    (b)

    Revenue account

    (c)

    Creditors account

    (d)

    Expenses account

  4. Companies cannot keep books on single entry system because of ______________

    (a)

    Tax Properties

    (b)

    Legal Provisions

    (c)

    Both (a) & (b)

    (d)

    None of these

  5. Income and expenditure account is a

    (a)

    Nominal A/c

    (b)

    Real A/c

    (c)

    Personal A/c

    (d)

    Representative personal account

  6. In the absence of an agreement, partners are entitled to

    (a)

    Salary

    (b)

    Commission

    (c)

    Interest on loan

    (d)

    Interest on capital

  7. ________________ is the interest allowed on capital of the partners.

    (a)

    Interest on drawings

    (b)

    Interest on capital

    (c)

    Both 'a' and 'b'

    (d)

    None of these

  8. Which of the following is true?

    (a)

    Super profit = Total profit / number of years

    (b)

    Super profit = Weighted profit / number of years

    (c)

    Super profit = Average profit – Normal profit

    (d)

    Super profit = Average profit x Years of purchase

  9. ________  is the good name or reputation of the business which brings benefit to the business

    (a)

    Goodwill

    (b)

    Fixed asset

    (c)

    Current asset

    (d)

    None of these

  10. At the time of admission, the goodwill brought by the new partner may be credited to the capital accounts of

    (a)

    all the partners

    (b)

    the old partners

    (c)

    the new partner

    (d)

    the sacrificing partne

  11. In admission undistributed profit or loss is transferred to

    (a)

    New partner's capital A/c only

    (b)

    Old partner's capital A/c only

    (c)

    All the partner's capital accounts

    (d)

    None of these

  12. ___________ ratio is the agreed proportion in which future profit will be distributed to all the partners including the new partner.

    (a)

    Old profit

    (b)

    New profits sharing

    (c)

    Sacrifice

    (d)

    None of these

  13. The reconstitution of the partnership requires a revision of the ___________ of the existing partners.

    (a)

    Profit sharing ratio

    (b)

    Capital ratio

    (c)

    Sacrificing ratio

    (d)

    Gaining ratio

  14. _________maybe taken on the life of the partners in a partnership firm

    (a)

    Life policies

    (b)

    Insurance premium

    (c)

    Both 'a and 'b'

    (d)

    None of these

  15. At the time of dissolution all the assets of firm are transferred to the realization A/c:

    (a)

    Market Value

    (b)

    Book Value

    (c)

    Cost Value

    (d)

    Bale Value

  16. 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

  17. Equity shares are also known as

    (a)

    authorised capital

    (b)

    issued capital

    (c)

    subscribed capital

    (d)

    ordinary shares

  18. The excess amount paid over the called up value of a share is known as

    (a)

    call in advance

    (b)

    calls in arrear

    (c)

    both 'a' and 'b'

    (d)

    none of these

  19. Which of the following statements is not true?

    (a)

    All the limitations of financial statements are applicable to financial statement analysis also.

    (b)

    Financial statement analysis is only the means and not an end.

    (c)

    Expert knowledge is not required in analysing the financial statements

    (d)

    Interpretation of the analysed data involves personal judgement

  20. To test the liquidity of a concern, which of the following ratios are useful?
    (i) Quick ratio
    (ii) Net profit ratio
    (iii) Debt-equity ratio
    (iv) Current ratio

    (a)

    (i) and (ii)

    (b)

    (i) and (iv)

    (c)

    (ii) and (iii)

    (d)

    (ii) and (iv)

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