This MCQ Test on the past adjustments has 15 practice questions. Test your knowledge about the partnership accounts - Fundamentals , concepts of past adjustments, their meaning, format for creating adjustment table, journal entries for past adjustments etc. The quiz suits well for conceptual clarity for your board exams
CBSE class 12 accountancy MCQ questions
The below MCQ test is designed as per the latest syllabus prescribed by CBSE board. With the rise in weightage of MCQ questions, the practice of MCQ questions becomes very important. The quiz is equally useful for students of CUET exams.
How to attempt the quiz
One by one go through the below questions and select the right option. Do all the questions and in the end press submit. Instantly you will get your score and the explanation against each question. Go through your mistakes and reattempt the quiz any number of times as needed.
MCQ Quiz - Practice Questions
MCQ Quiz
Question 1
Past adjustments refer to:
A
Correct Answer: Errors or omissions in earlier years rectified in current year
Past adjustments are errors and/or omissions in past financial years that are rectified in the current year after closing the accounts.
Question 2
Past adjustments are made when:
B
Correct Answer: After closing the books of accounts for past years and errors are discovered in current year
Past adjustments are made after closing the accounts when some errors or omissions in earlier years are discovered.
Question 3
Examples of past adjustments include:
B
Correct Answer: Interest on capital omitted or allowed at wrong rate in past
Past adjustments include interest on capital omitted, profit distributed in wrong ratio, salary not allowed, etc.
Question 4
Methods for rectifying past adjustments are:
B
Correct Answer: Single adjustment entry or multiple adjustment entries method
Past adjustments can be rectified by passing single adjustment entry for net effect or multiple adjustment entries.
Question 5
In single adjustment entry method:
B
Correct Answer: Net effect of errors is determined and one entry is passed
In single adjustment entry method, net effect of all errors is determined and one adjustment entry is passed.
Question 6
In multiple adjustment entries method:
B
Correct Answer: Separate entry is passed for each adjustment
In multiple adjustment entries method, separate adjusting entry is passed for each error or omission.
