PSU Test 3 Welcome to your International Navodaya Chamber of Commerce (INCOC) Platform ! Total Number of Question: 40Time: 41 MinutesPlease check your email after completion of test for result.All the best... Name Phone No Email State 1. Which of the following is capital expenditure? Repairs of fixed asset Demolition cost Locker rent Annual subscription None 2. Advertising expenses for launching a new product of the company is ______ Revenue expenditure (b) Capital expenditure (c) Deferred revenue expenditure (d) Deferred capital expenditure Capital expenditure Deferred revenue expenditure Deferred capital expenditure None 3. Capital expenditures are shown in the Balance Sheet Profit & Loss A/c Trading A/c Manufacturing A/c None 4. Import duty of raw materials purchased is a Revenue Expenditure Capital Expenditure Deferred Revenue Expenditure None of the above None 5. Which of the following item is shown in the Receipt and Payment account? Only items of capital nature Only items of revenue nature which are received during the period of accounts Only items of revenue nature pertaining to the period of accounts Both the items of capital and revenue nature which are received during the period of accounts None 6. Capital expenditures are recorded in the Balance sheet Profit and loss A/c Trading A/c Manufacturing A/c None 7. Life membership fees received by a club Revenue expenditure Capital expenditure Deferred revenue expenditure Capital receipt None 8. Received from Soloman & co., an invoice for ₹ 1500 for repairs to factory walls Revenue expenditure Capital expenditure Deferred revenue expenditure None of these None 9. A bad debt recovered during the year will be Capital expenditure Revenue expenditure Capital Receipt Revenue Receipt None 10. The convention that states that the accounting practice should be followed consistently over the years Consistency Conservation Materiality Disclosure None 11. Any point beyond PPF is: Attainable Unattainable Attainable with increase in production facilities None None 12. A typical demand curve will normally have a: Positive slope Horizontal slope Vertical slope Negative slope None 13. An imposition of excise duty would effect the demand of a product due to ________ Income effect Substitution effect Both None None 14. Tea and Coffee are: Complementary goods Alternative goods Unrelated goods None of these None 15. Complementary goods are those which are ________. Consumed Simultaneously Close Competitive Both Unrelated None 16. Goods which are perfect substitute of each other will have elasticity of substitution ________. Unity Less than 1 More than 1 Infinite None 17. Who defined economics as “Science which deals with wealth”? J. B. Say A. C. Pigou Alfred Marshall Robbins None 18. Economics cannot be given the status of science because: Of non-uniformity of opinion and approach of economist Economic behaviour of human being is unpredictable Measuring rod of money is unstable All the three None 19. The central problem of how to produce is resolved by: Demand and supply of factor inputs Demand and supply of goods Relative prices and availability of factors of production Government intervention None 20. Equilibrium relates to which of these: Market condition which oscillate Market state of failing price Market condition of rising price Market conditions which once achieved tends to persist None 21. At the time of dishonour of an endorsed bill which one out of these accounts would be debited by the drawer? Bill Receivable Account Drawee's Account Bank Account Bill Dishonoured Account None 22. If a bill drawn on 3 rd July, 2022 for 40 days payment must be made on: 16 th August, 2022 15 th August, 2022 14 th August, 2022 12 th August, 2022 None 23. When no separate set of books of accounts are maintained but each co-venturer keeps record of ail transactions then goods are purchased by a co-venturer for the joint venture, the account to be debited: Joint venture account Venture's capital account Purchase account None of the above None 24. A, for joint venture with B, purchased goods costing ₹ 2,20,000. B sold 80% of the goods for ₹ 2,80,000 Balance of goods were taken over by B at cost plus 10%. Find out profit on joint venture. ₹ 60,000 ₹ 1,21,600 ₹ 1,08,400 ₹ 99,600 None 25. Which of these accounts is not opened in the books of consignor? Consignment Account Commission Account Goods send on Consignment Account Consignee's Personal Account None 26. At the time of dishonour of an endorsed bill which one out of these accounts would be debited by the drawer? Bill Receivable Account Drawee's Account Bank Account Bill Dishonoured Account None 27. If a bill drawn on 3 rd July, 2022 for 40 days payment must be made on: 16th August, 2022 15th August, 2022 14th August, 2022 12th August, 2022 None 28. When no separate set of books of accounts are maintained but each co-venturer keeps record of ail transactions then goods are purchased by a co-venturer for the joint venture, the account to be debited: Joint venture account Venture's capital account Purchase account None of the above None 29. A, for joint venture with B, purchased goods costing ₹ 2,20,000. B sold 80% of the goods for ₹ 2,80,000 Balance of goods were taken over by B at cost plus 10%. Find out profit on joint venture. ₹ 60,000 ₹ 1,21,600 ₹ 1,08,400 ₹ 99,600 None 30. Which of these accounts is not opened in the books of consignor? Consignment Account Commission Account Goods send on Consignment Account Consignee's Personal Account None 31. Which of the following concepts, if violated, would make comparison of financial statements over a period of time difficult? Cost concept Consistency concept Accounting period concept Accrual concept None 32. Conservatism concept does not require Making provision for doubtful debts Valuing stock at lower of cost or net realisable value Creating provision for discount on creditors Making provision for an unfavourable legal suit None 33. As per duality concept or accounting equivalence concept, which of the following is correct? All increase in liabilities and increase in assets represent sources of funds All decrease in liabilities and decrease in assets represent sources of funds (c) All increase in liabilities and decrease in assets represent sources of funds All increase in liabilities and decrease in assets represent sources of funds All increase in liabilities and increase in assets represent uses of funds None 34. This is more of a convention than a concept, it proposes that while accounting for various transactions, only those which may have material effect on profitability or financial status of the business should have special consideration for reporting, this concept is known as Concept of Consistency Concept of Conservation Concept of Materiality Concept of Disclosure None 35. Recording of Fixed Assets at cost ensures adherence of Conservatism Concept Going Concern Concept Cost Concept Both (a) and (b) above None 36. Money spent ₹ 20,000 as traveling expenses of the directors on trips abroad for purchase of Capital assets is: Capital expenditure Revenue expenditures Deferred revenue expenditures None of the above. None 37. Which of the following is not a revenue expenditure? Petrol consumed in motor vehicles Cost of saleable goods Bad debts Premium given on lease None 38. Capital expenses are show in Balance sheet Profit and loss A/c Trading A/c None of these None 39. Life membership fees received by a club is a Revenue Expenditure Capital Expenditure Deferred Revenue Expenditure Capital Receipt None 40. Import duty of raw material purchased is a Revenge Expenditure Capital Expenditure Deferred Revenue Expenditure None of the above None 1 out of 4 Great job on taking the INCOC Test! We appreciate your interest in test.Look out for results and future opportunities.Stay Connected !! Time's upTime is Up!
