Accountancy quiz

Goodwill account is

• Personal account

• Real account

• Nominal account

• None

Which of the following is not a long term liability ?

• Creditor

• Term loan

• Debentures

• Capital

The debts which are to be repaid within a short period (a year or less) are referred to as

• Current liabilities

• Fixed liabilities

• Contingent liabilities

• All of the above

Internal users of accounting information are :

• Creditors

• Potential investors

• Managers

• Investors

Basic function of financial accounting is

• record all business transactions

• Interpret financial data

• Assist the management

• None of these

Cash, goods, or assets invested by the proprietor in the business for earning profit is called ______.

• Profit

• Capital

• Fixed assets

• None of these

Copyrights, Patents and Trademarks are examples of

• Current assets

• Fixed assets

• Intangible assets

• Investments

Use of a common unit of measurement and common format of reporting promotes _____.

• Comparability

• Understandability

• Relevance

• Reliability

The person, firm, or institution who does not pay the price in cash for the goods purchased or the services received is called ______.

• Creditor

• Proprietor

• Debtor

• None of these

Which is the last step of accounting as a process of information?

• Recording of data in the books of accounts

• Preparation of summaries in the form of financial statements

• Communication of information

• Analysis and interpretation of information