PSU Test 2 Welcome to your International Navodaya Chamber of Commerce (INCOC) Platform ! Total Number of Question: 40 Time: 41 Minutes Please check your email after completion of test for result. All the best... Name Phone No Email State 1. Any revenue expense for which a separate fund is available will be: Capitalised and shown in the balance sheet Debited to income and expenditure account Debited to the separate fund Debited to profit and loss account. None 2. Subscription received during the year ₹ 50,000; subscription outstanding at the beginning of the year ₹ 6,000. Income from subscription was shown as ₹ 52,000. What amount will be shown as subscription outstanding at the end of the year in the Balance Sheet? ₹ 8,000 ₹ 6,000 ₹ 2,000 ₹ 4,000 None 3. Which one of the following is not prepared by non-profit organizations? Profit and Loss Account Income and Expenditure Account Receipts and Payments Account Balance Sheet None 4. The information for the preparation of receipts and payments account is taken from: Income and Expenditure Account Cash Book Cash Book and Balance Sheet General Ledger None 5. The Receipt and Payment Account shows advance subscriptions ₹ 6,000 and current year's subscription ₹ 44,500. If outstanding subscription of ₹ 4,500 then how much amount of subscription to be credited in the Income and Expenditure Account? ₹ 50,000 ₹ 49,000 ₹ 44,500 ₹ 45,000 None 6. Which of the following items are 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 Both the items of capital and revenue nature which are received during the period of accounts. None 7. The manager is entitled to a commission of 5% on profits after deducting this commission. If the profits before charging such commission and interest on capital of ₹ 5,000 are ₹ 89,000, then manager's commission will be: ₹ 4,200 ₹ 4,450 ₹ 4,000 ₹ 4,476 None 8. Which of the following statement is true? Fixed assets - Current liabilities = Current assets Discount on bills is a loss for the drawer and gain for the drawee Profit and loss account covers a period and not the position of a particular day The surplus of a non-profit organisation is distributed among the members None 9. Which one of the following statements is true? Comparatively is one of the accounting concepts Accounting is concerned with both monetary and non-monetary transactions Joint venture follows the going concern concept Financial statements are part of Accounting None 10. The manufacturing account is prepared: To ascertain gross profit To ascertain the cost of goods manufactured To ascertain profit or loss on the goods manufactured To ascertain the cost of sales None 11. Economics is: Normative science Positive science Human science Political science None 12. Scarcity definition was given by: L. Robbins Alfred Marshall J. M. Keynes Adam Smith None 13. Del Credere Commission in consignment business is generally payable: Only on credit sales On cash sales On total sales. On recovery of bad debt None 14. For closing stock held by consignee which account must be debited to: Consignment Stock Account Sales Account Consignee Account Consignment Account None 15. X sends out goods to Y, costing ₹ 1,50,000. Goods are to be sold at cost + 25% of sales price. The consignor asked consignee to pay an advance for an amount equivalent to 60% of sales value. The amount of advance will be: ₹ 1,20,000 ₹ 1,00,000 ₹ 1,50,000 ₹ 1,12,500 None 16. No adjustment is required while ascertaining debtors balance at the end of a period against: Bad debt Trade discount Cash discount Return inward None 17. Provision for discount on debtors is created only on: Bad and doubtful debtors Insolvent debtors Total debtors after providing provision for bad debts Total debtors None 18. A bad debt recovered during the year is a: Revenue receipt Capital expenditure Reduction of Sundry Debtors Capital Receipt None 19. A machine is purchased on 1st July, 2022 for ₹ 14,00,000. Expenses incurred on its carriage and installation ₹ 6,00,000. Calculate the amount of depreciation @ 20%, per annum according to Straight Line Method for the first year ending on 31st March, 2023. ₹ 4,00,000 ₹ 3,00,000 ₹ 2,00,000 ₹ 1,00,000 None 20. Which of the following error is an error of principle? ₹ 5,000 received from Shyam credited to Ram's A/c ₹ 5,000 paid to employees on installation of new plant debited to Wages A/c ₹ 500 paid for wages debited to salary A/c ₹ 500 being purchase of raw material debited to purchase A/c ₹ 500 None 21. Goods purchased from Mr. A. but wrongly entered in the sales returns book. After rectification of error the result will: Be increased in gross profit Be decreased in gross profit Be no effect on gross profit Either (a) or (b) None 22. Find the correct statement: Not recording a business transaction is an error of principle Charging a revenue item to capital is a compensating error Writing a debit item on the credit side and vice versa is an error of Commission Bills received from Sohan passed through Bills Payable Book is an error of omission None 23. Consumer's surplus was propounded by: Alfred Marshall Pigou Malthus Robbins None 24. Law of demand explains: Quantitative relationship (b) Qualitative relationship (c) Functional relationship (d) None of the above Qualitative relationship Functional relationship None of the above None 25. Exception to the law of supply is: Agricultural product Scarce goods Labour marke All of the above None 26. Micro economics is also known as: Product theory . Price theory Process theory Projection theory None 27. Demand can be defined as: Desire to buy Willingness to buy Ability to pay Desire and willingness to buy backed by adequate purchasing power None 28. In case of normal goods the income effect is: Zero Positive Negative None of the above None 29. The formula E = PXQY=QYPX represents: Cross-elasticity of demand for Y Price-elasticity of demand for X Cross-elasticity of demand for X None of the above None 30. When the utility is increasing at an increasing rate, marginal utility is: Constant Negative Increasing Decreasing None 31. Consumer’s surplus is also known as: Elasticity of demand Differential surplus Buyer’s surplus Indifference surplus None 32. The law 'supply creates its own demand' was put forth by: Marshall Pigou Robbins J. B. Say None 33. Effective demand is: Demand exceeds supply Aggregate demand is equal to aggregate supply Elasticity of demand for a product is high Difference between actual and forecast demand None 34. Cross elasticity of demand relates: Price of one commodity and demand for another commodity Substitutes and complementary goods Market and supply Production and cost None 35. Central Problem of all Economies are: What to produce? How to produce? For whom to produce? All of the above None 36. Exceptions to the law of demand are: Conspicuous goods Giffen goods Shares’ speculative market All if the above None 37. The concept of consumer’s surplus was propounded by: Malthus Alfred Marshall Robbins Pigou None 38. Law of Demand Explains: Qualitative relationship Quantitative relationship Functional Relationship None of the above None 39. Utility is: Cardinal Ordinal Neutral Both (a) and (b) None 40. We cannot produce: (a) Any thing (b) Every thing (c) Useless things (d) Good things Any thing Every thing Useless things Good things 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 !! 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