Top 250+ Solved Financial Accounting 2 MCQ Questions Answer
Q. The agreement among partners which set out the terms on which they had agreed to forma partnership is called:
a. partnership deed
b. partnership at will
c. none of these
d. arbitration clause
Q. Every partner has a right to be consulted in all matters affecting the business of:
a. sole-tradership
b. partnership
c. jsc
d. both (a) and (b)
Q. A credit balance on a partner’s current A/c is.
a. fixed capital
b. part of capital
c. a current asset
d. long – term liability
Q. Old profit sharing ratio minus new profit sharing ration is equal to:
a. sacrificing ratio
b. ratio of gain
c. capital ratio
d. none
Q. A is drawing Rs. 500 regularly on the 16th of every month, he will have to pay interest ina year on Rs. 6000 for the total period of @ given rate of interest):
a. 5 months
b. 6 months
c. 7 months
d. 12 months
Q. For any decrease in the value of liability, revolution A/c is to be:
a. debited
b. credited
c. both (cr.) & (dr.)
d. neither (dr.) & (cr.)
Q. When good will is brought in cash by new partner, method is known as:
a. premium method
b. revolution method
c. memorandum revolution method
d. none
Q. Section 37 of partnership act provided interest on the amount left by retiring or decreasedpartner at:
a. 5%
b. 10%
c. 6%
d. bank rate
Q. When a partner dies, firm will receive the:
a. 1/2 amount of policy
b. 1/4 amount of policy
c. 3/4 amount of policy
d. full amount of policy
Q. 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
Q. Balance of realization A/c is transferred to the capital A/c of the partners in:
a. capital ratio
b. profit sharing ratio
c. interest ratio
d. equally
Q. When an asset is acquired on hire purchase system, the asset account is debited with_______ of the assets in the books of the hire purchaser.
a. hire purchase price
b. cash price
c. instalment price
d. none of these