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Accountancy

Total questions: 23

Worksheet time: 12mins

Name
Class
Date
1.

The systematic process of keeping or maintaining financial records and transactions for a business..

a)

Accounting

b)

Accountancy

c)

Accountant

d)

Bookkeeper

2.

The practice of measuring, classifying, verifying, summarizing, interpreting and reporting on business transactions for a business to reveal profit or loss, a firm's assets, liabilities and owners' equity.

a)

Accounting

b)

Accountancy

c)

Accountant

d)

Bookkeeper

3.

Accounting process starts with.....

a)

Identification of financial transactions

b)

Posting into ledger

c)

Recording in Journal

d)

Summarising of financial transactions

4.

A __________________ statement shows the profitability of the business

a)

Cash flow

b)

Profitability

c)

Financial Position

d)

Profit or Loss

5.

A person to whom money is owed by a firm for purchase of goods or services is called

a)

The Debtor

b)

The Creditor

c)

The Drawer

d)

None of these

6.

A person who owes money to a firm against goods bought or services received is called

a)

The Debtor

b)

The Creditor

c)

The Drawer

d)

None of these

7.

The costs incurred in conducting the business are ....

a)

Assets

b)

Liabilities

c)

Revenue

d)

Expenses

8.

The economic obligations of a business entity are called ...

a)

Assets

b)

Liabilities

c)

Revenue

d)

Expenses

9.

Indebtedness arising from purchases of goods, materials, supplies, services or other transactions is ....

a)

Accounts Payable

b)

Notes Payable

c)

Bonds Payable

d)

Loans Payable

10.

Those Assets which are acquired for the purpose of increasing the earning capacity of the business is called

a)

Financial assets

b)

Current Assets

c)

Fixed Assets

d)

None of these

11.

Which of the following is a current asset?

a)

Machinery

b)

Cash

c)

Building

d)

Furniture

12.

Trade discount means

a)

Cash discount

b)

No discount

c)

Reduction in price

d)

None of these

13.

A double entry system means

a)

Twice recorded

b)

Once in ledger once in journal

c)

Recording both aspects of transactions

d)

None of these

14.

Purchase refers to the buying of

a)

Goods or products for resale

b)

Assets for the factory

c)

Stationery for office use

d)

Daily expenses

15.

Which concept says that Accounting practices once adopted should be applied year after year?

a)

Conservatism

b)

Accrual

c)

Business entity

d)

Consistency

16.

If goods are distributed as free samples, which account should you debit?

a)

Purchases

b)

Goods

c)

Free sample

d)

Advertising

17.

Which of the following is an incorrect formula?

a)

Capital = Assets - Liabilities

b)

Capital + Assets = Liabilities

c)

Capital + Liabilities = Assets

d)

Capital - Assets = Liabilities

18.

Accrued Commission is a/an ...

a)

Income

b)

Asset

c)

Liability

d)

Expense

19.

Which of the following best describes a trial balance?

a)

It shows the financial position of a business

b)

It is a special account

c)

It shows all the entries in all the journals

d)

It is a list of the total balances for the books

20.

A and B are equal partners with the capital of Rs.16000 and Rs.12000. C a new partner comes in for ¼ share and brings capital Rs.15000. Find the value of the firm's goodwill?

a)

Rs. 60,000

b)

Rs.11,200

c)

Rs.17,000

d)

Rs.43,000

21.

Total assets and liabilities of the firm are Rs.70,000 and Rs.10,000. Average profit is Rs.8,000. NRR 10%. Calculate super profit?

a)

Rs.1,000

b)

Rs.2,000

c)

Rs.3,000

d)

Rs.4,000

22.

When the partners decide to dissolve the partnership, then the a/c prepared is

a)

Revaluation a/c

b)

Realisation A/c

c)

Memorandum revaluation

d)

None of these

23.

A and B are partners sharing profits in ratio of 2:1. They admit C for 1/3 share in profits. The sacrifice ratio of A and B is

a)

2:3

b)

1:2

c)

2:1

d)

1:1