Welcome to your International Navodaya Chamber of Commerce (INCOC) Platform ! Subject: Jurisprudence, Interpretation, and General Laws (ICSI). 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. What is the primary function of law? To create disputes To maintain social order and justice To increase government power To favor the wealthy None 2. Which of the following is NOT a source of law? Legislation Customs Social Media Judicial Precedents None 3. Which branch of jurisprudence deals with the philosophical aspects of law? Analytical Jurisprudence Ethical Jurisprudence Sociological Jurisprudence Historical Jurisprudence None 4. Who is known as the "Father of Jurisprudence"? Jeremy Bentham John Austin Henry Maine Salmond None 5. According to Austin’s theory, law is defined as: The command of the sovereign A moral obligation A divine rule An evolving social practice None 6. Which legal theory is associated with ‘greatest happiness for the greatest number’? Natural Law Theory Utilitarianism Sociological Jurisprudence Historical Jurisprudence None 7. Which of the following is an essential feature of a legal right? It exists in isolation It is always unlimited It is enforceable by law It is always against the government None 8. Which school of jurisprudence emphasizes law as a tool for social progress? Analytical School Historical School Sociological School Natural Law School None 9. Which term refers to the body of rules guiding judicial decisions? Statute Law Common Law Administrative Law Constitutional Law None 10. Which of the following is NOT a function of the judiciary? Law enforcement Interpretation of laws Dispute resolution Protection of fundamental rights None 11. The rule that interpretation should focus on the literal meaning of words is called: Golden Rule Mischief Rule Literal Rule Harmonious Construction None 12. The Mischief Rule was established in which case? Heydon’s Case Donoghue v. Stevenson Rylands v. Fletcher Carlill v. Carbolic Smoke Ball Co. None 13. Which rule of interpretation allows courts to modify the literal meaning to avoid absurd results? Literal Rule Golden Rule Purposive Approach Expressio Unius Rule None 14. Which Latin maxim means "the expression of one thing is the exclusion of another"? Ejusdem Generis Noscitur a sociis Expressio unius est exclusio alterius Stare decisis None 15. What does ‘Ejusdem Generis’ mean? The specific overrides the general Of the same kind or class Laws should be interpreted liberally None of the above None 16. Which approach to statutory interpretation considers the intention of the legislature? Literal Rule Golden Rule Purposive Approach Mischief Rule None 17. Which type of statutes are enacted to address social problems? Penal Statutes Remedial Statutes Directory Statutes Fiscal Statutes None 18. Which of the following is NOT a type of statute? Declaratory Mandatory Interpretative Derivative None 19. What is the significance of "Noscitur a sociis" in statutory interpretation? A word is known by its associates Laws should be interpreted literally Penal laws should be strictly construed None of the above None 20. The ‘Harmonious Construction’ principle is used when: There is ambiguity in the statute Two provisions of the same statute conflict A word is undefined in law None of the above None 21. Which article of the Indian Constitution deals with equality before the law? Article 14 Article 19 Article 21 Article 32 None 22. Which law governs contracts in India? The Companies Act, 2013 The Indian Contract Act, 1872 The Partnership Act, 1932 The Arbitration and Conciliation Act, 1996 None 23. Which law regulates arbitration in India? The Civil Procedure Code, 1908 The Arbitration and Conciliation Act, 1996 The Evidence Act, 1872 The Indian Penal Code, 1860 None 24. Which of the following is NOT an essential element of a contract? Free consent Lawful object Written form Offer and acceptance None 25. What is the limitation period for filing a civil suit under the Limitation Act, 1963? 1 year 3 year 6 year 10 year None 26. Which law governs the enforcement of fundamental rights in India? Indian Penal Code, 1860 Code of Civil Procedure, 1908 Constitution of India Evidence Act, 1872 None 27. Under the Indian Contract Act, 1872, an agreement without consideration is: Voidable Valid Void Illegal None 28. Which of the following is a quasi-contract under the Indian Contract Act, 1872? Bailment Agency Responsibility of a finder of goods Sale of goods None 29. Which law in India deals with insolvency and bankruptcy? Companies Act, 2013 Insolvency and Bankruptcy Code, 2016 Negotiable Instruments Act, 1881 Indian Partnership Act, 1932 None 30. Which section of the Indian Contract Act, 1872, defines "Contract"? Section 1 Section 2(h) Section 10 Section 3 None 31. Under the Limitation Act, 1963, what is the limitation period for filing an appeal in a civil suit? 60 days 90 days 30 days 1 year None 32. Which of the following is NOT a negotiable instrument under the Negotiable Instruments Act, 1881? Cheque Promissory Note Fixed Deposit Receipt Bill of Exchange None 33. The transfer of ownership of goods in a contract of sale occurs when: The contract is signed The goods are identified and delivered Payment is received The buyer acknowledges the invoice None 34. Which Act governs partnership firms in India? Indian Contract Act, 1872 Companies Act, 2013 Indian Partnership Act, 1932 Arbitration and Conciliation Act, 1996 None 35. Which section of the Indian Penal Code, 1860, defines "theft"? Section 378 Section 302 Section 420 Section 499 None 36. Which of the following is a valid mode of dissolution of a partnership firm? Death of a partner Mutual consent Court order All of the above None 37. Under the Companies Act, 2013, what is the minimum number of members required for a private company? 1 2 5 7 None 38. Which law governs cyber crimes and digital transactions in India? The Indian Penal Code, 1860 The IT Act, 2000 The Companies Act, 2013 The Indian Contract Act, 1872 None 39. The Competition Act, 2002, was enacted to regulate: Consumer Protection Monopolies and restrictive trade Contractual obligations Labour disputes None 40. Which authority regulates securities markets in India? SEBI RBI IRDAI NCLT 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 !! Your quiz time is about to finish. Few seconds left. Time's upYou cannot switch tabs while taking this quiz!You are not allowed to switch tabs violation has been recorded.you cannot minimize full screen mode!You are not allowed to minimize full screen while taking this quiz, violation has been recorded.Access denied! 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Welcome to your International Navodaya Chamber of Commerce (INCOC) Platform ! Subject: Jurisprudence, Interpretation, and General Laws (ICSI). 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. Which of the following is NOT a classification of law? Substantive and Procedural Law Civil and Criminal Law National and International Law Legal and Illegal Law None 2. Who propounded the "Social Contract Theory" of law? Jeremy Bentham John Locke Karl Marx Austin None 3. Which school of law considers law as a means of achieving justice? Analytical School Historical School Sociological School Natural Law School None 4. Which of the following is an essential element of a legal right? Subject Object Duty All of the above None 5. The concept of "Rule of Law" is associated with which jurist? Austin Dicey Bentham Hart None 6. Which type of law deals with offences and punishments? Civil Law Procedural Law Criminal Law Administrative Law None 7. Which of the following statements is true regarding "Customs" as a source of law? Customs must be immemorial Customs should be contrary to public policy Customs need not be recognized by the courts Customs are always written laws None 8. Which theory believes that law is made by the ruling class to maintain its supremacy? Analytical Positivism Historical Theory Marxist Theory Sociological Theory None 9. Which legal principle means “No one shall be condemned unheard”? Stare Decisis Audi Alteram Partem Res Judicata Ex Post Facto None 10. In jurisprudence, ‘Res Judicata’ means: The matter is under trial The matter has been judged and cannot be re-litigated The matter is pending in another court The matter is related to fundamental rights None 11. Which rule of interpretation suggests that laws should be read as a whole? Literal Rule Golden Rule Mischief Rule Rule of Harmonious Construction None 12. The principle "Ut Res Magis Valeat Quam Pereat" means: A statute must be interpreted to make it effective The law must be read literally Ambiguous statutes should be struck down None of the above None 13. Which doctrine helps in resolving conflicts between two provisions of the same statute? Doctrine of Pith and Substance Doctrine of Harmonious Construction Doctrine of Colorable Legislation Doctrine of Eclipse None 14. What does "Mens Rea" mean in criminal law? A guilty act A guilty mind A crime without punishment A civil wrong None 15. What is the limitation period for filing an appeal under the Consumer Protection Act, 2019? 15 days 30 days 60 days 90 days None 16. Which of the following is NOT a mode of statutory interpretation? Literal Rule Golden Rule Mischief Rule Rule of Speculation None 17. Which act governs the registration of documents in India? The Transfer of Property Act, 1882 The Registration Act, 1908 The Indian Evidence Act, 1872 The Limitation Act, 1963 None 18. Which article of the Indian Constitution provides the Right to Constitutional Remedies? Article 19 Article 32 Article 14 Article 21 None 19. Which law deals with the protection of whistleblowers in India? The Prevention of Corruption Act, 1988 The Right to Information Act, 2005 The Whistle Blowers Protection Act, 2014 The Consumer Protection Act, 2019 None 20. Under which law are courts bound by previous decisions? Doctrine of Prospective Overruling Doctrine of Stare Decisis Doctrine of Necessity Doctrine of Pith and Substance None 21. Under the Companies Act, 2013, which authority has the power to investigate company affairs? SEBI MCA NCLT RBI None 22. Which authority is responsible for regulating contracts in India? The Consumer Forum The National Company Law Tribunal The Indian Contract Act, 1872 The Competition Commission of India None 23. What is the maximum punishment for a negotiable instrument dishonor under Section 138 of the NI Act? 6 months imprisonment 1-year imprisonment 2 years imprisonment 3 years imprisonment None 24. Under the Right to Information (RTI) Act, information must be provided within how many days? 7 days 15 days 30 days 60 days None 25. Which law protects consumer rights in India? The Sale of Goods Act, 1930 The Competition Act, 2002 The Consumer Protection Act, 2019 The Contract Act, 1872 None 26. Which of the following is not a fundamental right under the Indian Constitution? Right to Equality Right to Property Right to Freedom Right against Exploitation None 27. The ‘Doctrine of Ultra Vires’ applies to: Partnership firms Limited Liability Partnerships Companies Hindu Undivided Families None 28. Which law governs the arbitration process in India? The Civil Procedure Code, 1908 The Arbitration and Conciliation Act, 1996 The Indian Evidence Act, 1872 The Companies Act, 2013 None 29. Which of the following is not a valid contract under the Indian Contract Act, 1872? A contract made with a minor A contract made by free consent A contract with lawful consideration A contract in writing None 30. Which of the following bodies is responsible for enforcing the Consumer Protection Act, 2019? Competition Commission of India (CCI) National Company Law Tribunal (NCLT) Consumer Disputes Redressal Commission Securities and Exchange Board of India (SEBI) None 31. Under the Companies Act, 2013, which type of meeting is held annually by a company? Board Meeting Annual General Meeting (AGM) Extraordinary General Meeting (EGM) Creditors’ Meeting None 32. Which of the following is not a valid mode of transfer under the Transfer of Property Act, 1882? Sale Gift Will Mortgage None 33. Which of the following is an essential element of a partnership under the Indian Partnership Act, 1932? At least two persons Sharing of profits Business carried on by all or any of them acting for all All of the above None 34. Which of the following is not an intellectual property right (IPR)? Patent Copyright Trademark Right to Property None 35. Which authority is responsible for the registration of companies in India? SEBI Reserve Bank of India (RBI) Ministry of Corporate Affairs (MCA) Competition Commission of India (CCI) None 36. Which of the following statements is incorrect about the Indian Penal Code, 1860? It applies to the whole of India It defines criminal offenses and their punishments It is only applicable to civil wrongs It was enacted during British rule None 37. Under which Act is an e-contract recognized as valid in India? The IT Act, 2000 The Indian Contract Act, 1872 The Companies Act, 2013 The Indian Evidence Act, 1872 None 38. What is the limitation period for filing a suit for breach of contract under the Limitation Act, 1963? 1 year 2 years 3 years 5 years None 39. Which of the following is a quasi-judicial body? Supreme Court National Green Tribunal (NGT) Parliament Lok Sabha None 40. What is the maximum punishment for committing defamation under the Indian Penal Code, 1860? 3 months 6 months 1 year 2 years 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 !! Your quiz time is about to finish. Few seconds left. Time's upYou cannot switch tabs while taking this quiz!You are not allowed to switch tabs violation has been recorded.you cannot minimize full screen mode!You are not allowed to minimize full screen while taking this quiz, violation has been recorded.Access denied! To begin the quiz, please grant this quiz access to your camera.Time is Up!Time is Up!
Welcome to your International Navodaya Chamber of Commerce (INCOC) Platform ! Subject: Fundamentals of Accounting and Auditing 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. Which of the following is an example of a capital receipt? Sale of goods Loan taken from a bank Rent received Discount received None 2. Which financial statement reflects a company’s profitability over a period of time? Balance Sheet Cash Flow Statement Profit and Loss Account Trial Balance None 3. Which accounting concept states that revenue and expenses should be recorded in the period they occur, not when cash is received or paid? Consistency Concept Accrual Concept Business Entity Concept Money Measurement Concept None 4. What is the accounting treatment for prepaid expenses? Shown as an expense in the Profit and Loss Account Recorded as an asset in the Balance Sheet Deducted from capital Recorded as income in the Profit and Loss Account None 5. Which of the following errors will NOT affect the trial balance? Errors of omission Errors of principle Errors of commission Errors in totaling None 6. Which of the following accounts always shows a debit balance? Revenue Account Capital Account Expense Account Liability Account None 7. What type of liability is outstanding salary? Current Liability Fixed Liability Contingent Liability Non-current Liability None 8. Which document is prepared to record credit purchases? Sales Invoice Purchase Invoice Credit Note Debit Note None 9. Which of the following transactions will increase the owner’s capital? Withdrawal of cash Additional capital introduced Payment of expenses Purchase of goods on credit None 10. The double-entry system was introduced by: Adam Smith Luca Pacioli Henry Fayol Warren Buffet None 11. Bank reconciliation statement is prepared to reconcile the differences between: Cash book and bank passbook Journal and ledger Trial balance and ledger Cash book and petty cash book None 12. Which of the following is not an example of an intangible asset? Patent Trademark Goodwill Inventory None 13. Which of the following errors is disclosed by the trial balance? Errors of principle Errors of omission Errors of commission Compensating errors None 14. When goods are returned by a customer, which document is issued? Credit Note Debit Note Purchase Invoice Sales Invoice None 15. Which accounting concept assumes that a business will continue indefinitely? Consistency Concept Money Measurement Concept Going Concern Concept Accrual Concept None 16. Which type of audit is mandatory by law? Internal Audit Statutory Audit Performance Audit Social Audit None 17. What is the primary objective of an auditor? To detect fraud and errors To check whether the financial statements give a true and fair view To verify cash transactions To ensure tax compliance None 18. An audit report is addressed to: The government The shareholders The company secretary The creditors None 19. What is the term used for examining a company’s financial statements for accuracy? Investigation Verification Auditing Accounting None 20. Which of the following is an example of an external audit? Statutory Audit Internal Audit Management Audit Performance Audit None 21. The auditor must ensure that financial statements are prepared as per: Management’s requirements Auditing Standards Tax regulations Budget estimates None 22. Which type of audit is performed by an organization’s own employees? External Audit Statutory Audit Internal Audit Tax Audit None 23. What is the meaning of "Independence of an Auditor"? Auditor should not take sides Auditor must be an employee of the company Auditor should follow management’s instructions Auditor should avoid making reports None 24. An audit working paper is used for: Recording financial transactions Documenting audit procedures and findings Preparing financial statements Filing tax returns None 25. Which of the following audits is conducted to check operational efficiency? Financial Audit Statutory Audit Performance Audit Cost Audit None 26. Which of the following is NOT an advantage of auditing? Detection of fraud Detection of errors Prevention of fraud Preparation of financial statements None 27. An adverse audit opinion means that: Financial statements are free from material misstatement Financial statements do not give a true and fair view Auditor is unable to express an opinion Audit is not completed None 28. Which of the following is NOT a type of audit evidence? Documentary Evidence Oral Evidence Physical Evidence Hearsay Evidence None 29. Who issues auditing standards in India? SEBI ICAI RBI MCA None 30. Which of the following is classified as a fictitious asset? Land and Building Prepaid Expenses Goodwill Discount on Issue of Shares None 31. The primary duty of an auditor is to: Detect fraud Verify financial statements Maintain accounts Prepare financial reports None 32. Which financial statement helps in assessing the liquidity position of a company? Profit and Loss Account Balance Sheet Cash Flow Statement Trial Balance None 33. Which of the following accounts is NOT closed at the end of the financial year? Sales Account Rent Account Capital Account Interest Account None 34. Which type of depreciation method assumes that an asset loses value more in the earlier years? Straight Line Method Reducing Balance Method Revaluation Method Sum-of-Digits Method None 35. Which of the following is an example of contingent liability? Outstanding salary Bills payable Bank loan Pending legal case None 36. Which of the following is NOT a limitation of auditing? Dependence on evidence Possibility of fraud remaining undetected Checking of all transactions in detail Subjectivity in judgment None 37. The final responsibility for financial statements lies with: Auditor Management Shareholders Government None 38. Which audit procedure involves comparing current financial data with previous periods? Physical Verification Analytical Review Vouching Confirmation None 39. An auditor’s report that states "true and fair view" without any reservations is called a: Qualified Report Adverse Report Clean Report Disclaimer of Opinion None 40. In case of fraud detection, an auditor should first: Inform the government Report to the shareholders Inform the management Conduct further investigation 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 !! Your quiz time is about to finish. Few seconds left. 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Welcome to your International Navodaya Chamber of Commerce (INCOC) Platform ! Subject: Fundamentals of Accounting and Auditing 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. A disclaimer of opinion is issued when: The financial statements are materially misstated The auditor is unable to obtain sufficient audit evidence The company reports a net loss The auditor is satisfied with the financial statements None 2. Which of the following is an example of an asset that requires physical verification? Accounts Receivable Cash at Bank Plant and Machinery Goodwill None 3. The audit report is issued by: Management Internal Auditor Statutory Auditor Shareholders None 4. SA 200 relates to: Audit Planning Responsibilities of an Auditor Going Concern Fraud Detection None 5. A professional auditor must avoid: Independence Objectivity Conflict of Interest Due Care None 6. Which fundamental principle is followed in auditing? Confidentiality Professional Skepticism Integrity All of the above None 7. Which organization issues auditing standards in India? SEBI ICAI ICSI RBI None 8. A code of ethics for auditors ensures: Increased company profits Proper maintenance of accounts Avoidance of tax audits Professional behavior and integrity None 9. Which document is verified when vouching purchases? Sales Invoice Purchase Invoice Bank Statement Credit Note None 10. Which of the following is not a type of audit opinion? Unqualified Opinion Qualified Opinion Adverse Opinion Management Opinion None 11. Vouching involves: Checking the accuracy of ledger balances Examining supporting documents for transactions Preparing financial statements Auditing financial reports None 12. Which type of account follows the "Debit the receiver, Credit the giver" rule? Personal Account Real Account Nominal Account Contra Account None 13. The process of recording financial transactions in books is called: Accounting Bookkeeping Auditing Financial Management None 14. Which of the following is an intangible asset? Goodwill Land Machinery Inventory None 15. Which book is used for recording daily financial transactions? Ledger Cash Book Trial Balance Balance Sheet None 16. What does a "suspense account" do? Records cash transactions Temporarily holds unclassified transactions Maintains petty cash expenses Records bad debts None 17. Capital expenditure is incurred for: Day-to-day expenses Short-term benefits Acquiring fixed assets Office supplies None 18. Which of the following is an example of a liability? Cash in Hand Debtors Creditors Prepaid Rent None 19. The balance of which account is carried forward to the next accounting period? Nominal Account Real Account Personal Account Capital Account None 20. Which of the following is not a method of inventory valuation? FIFO LIFO HIFO Weighted Average None 21. Who is responsible for the preparation of financial statements? Auditor Management Shareholders Government None 22. The scope of audit includes: Verification of assets and liabilities Examination of accounting records Expressing an opinion on financial statements All of the above None 23. Which type of audit is conducted by an external auditor? Internal Audit Statutory Audit Cost Audit Tax Audit None 24. What does "Vouching" mean in auditing? Preparing financial statements Verifying transactions with supporting documents Checking internal controls Calculating profits None 25. Which of the following is not a type of audit? Cost Audit Secret Audit Performance Audit Secret Audit Tax Audit None 26. The main objective of an audit is to: Detect fraud Ensure compliance with tax laws Express an opinion on financial statements Calculate profits None 27. Which of the following is a type of audit opinion? Qualified Unqualified Adverse All of the above None 28. What is internal control in auditing? Examining financial statements System of policies to ensure efficiency Preparation of balance sheet None of the above None 29. Audit working papers should be retained for: One year Three years Five years As per regulatory requirement None 30. The term "Materiality" in auditing means: Cost of an asset Importance of an item in financial statements Quality of audit evidence None of the above None 31. Which financial statement shows a company’s financial position at a specific date? Profit and Loss Account Balance Sheet Trial Balance Cash Flow Statement None 32. Which type of account follows the rule "Debit all expenses and losses, Credit all incomes and gains"? Personal Account Real Account Nominal Account Contra Account None 33. Which of the following is a non-current asset? Cash in Hand Inventory Accounts Receivable Land and Building None 34. Discount allowed to customers is recorded in which account? Income Account Expense Account Liability Account Asset Account None 35. Which accounting principle ensures that financial statements are prepared assuming the business will continue operating indefinitely? Accrual Concept Going Concern Concept Prudence Concept Consistency Concept None 36. Which of the following is an objective of auditing? Preparation of financial statements Fraud detection and prevention Expressing an opinion on financial statements Preparing tax returns None 37. Which type of audit is conducted at irregular intervals without prior notice? Internal Audit Statutory Audit Management Audit Surprise Audit None 38. Who appoints the statutory auditor of a company? Board of Directors Shareholders Government Company Secretary None 39. Which of the following is not an essential characteristic of good audit evidence? Reliability Relevance Subjectivity Sufficiency None 40. Which type of audit checks whether an entity is complying with laws and regulations? Internal Audit Compliance Audit Financial Audit Operational Audit 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 !! Your quiz time is about to finish. Few seconds left. Time's upYou cannot switch tabs while taking this quiz!You are not allowed to switch tabs violation has been recorded.you cannot minimize full screen mode!You are not allowed to minimize full screen while taking this quiz, violation has been recorded.Access denied! To begin the quiz, please grant this quiz access to your camera.Time is Up!Time is Up!
Welcome to your International Navodaya Chamber of Commerce (INCOC) Platform ! Subject: Fundamentals of Accounting and Auditing 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. Which accounting concept states that business transactions should be recorded separately from the owner's personal transactions? Consistency Concept Business Entity Concept Going Concern Concept Money Measurement Concept None 2. The principle of recording expenses in the period in which they are incurred, regardless of when payment is made, is called: Accrual Concept Matching Concept Consistency Concept Dual Aspect Concept None 3. The double-entry system of accounting is based on which of the following principles? Business Entity Concept Dual Aspect Concept Cost Concept Money Measurement Concept None 4. Which financial statement summarizes the financial position of an entity at a specific point in time? Profit and Loss Account Trial Balance Balance Sheet Cash Flow Statement None 5. Depreciation is recorded as: An asset A liability An expense A capital reserve None 6. The book where all journal entries are first recorded is called: Ledger Trial Balance Journal Balance Sheet None 7. A credit balance in the bank column of the cash book represents: Bank Overdraft Cash in Hand Net Profit Capital Account None 8. If a business purchases furniture for ₹10,000, how will it be recorded in the books? Debit Furniture A/c, Credit Cash A/c Debit Cash A/c, Credit Furniture A/c Debit Purchases A/c, Credit Cash A/c Debit Cash A/c, Credit Purchases A/c None 9. The total of the debit side of the trial balance is ₹50,000 and the credit side is ₹48,000. The difference of ₹2,000 should be: Posted to the suspense account Adjusted in capital account Transferred to the profit and loss account Ignored None 10. Which of the following is an example of a real account? Capital Account Sales Account Rent Account Wages Account None 11. If a purchase of ₹5,000 is wrongly recorded as ₹500, it is an error of: Omission Commission Principle Compensating None 12. Prepaid expenses appear in the balance sheet under: Current Assets Current Liabilities Long-term Liabilities Capital Account None 13. Which of the following is an intangible asset? Machinery Stock Goodwill Cash None 14. Which statement is correct? Profit = Revenue - Expenses Liabilities = Assets + Capital Revenue = Profit + Expenses Assets = Liabilities - Capital None 15. Closing stock is shown in: Trading Account Profit and Loss Account Balance Sheet All of the above None 16. The primary objective of auditing is to: Detect fraud Verify financial statements Help management Check tax compliance None 17. Internal audit is conducted by: Government Auditors External Auditors Company’s Own Staff SEBI Officials None 18. The first step in an audit process is: Checking vouchers Verification of assets Understanding internal controls Checking financial statements None 19. An auditor’s opinion on financial statements is presented in: Balance Sheet Auditor’s Report Notes to Accounts Profit and Loss Account None 20. The term vouching means: Checking physical stock Examining invoices and receipts Preparing financial statements Checking bank statements None 21. Which type of audit is required for listed companies? Statutory Audit Internal Audit Tax Audit Cost Audit None 22. The Companies Act requires the auditor to be: A Cost Accountant A Company Secretary A Chartered Accountant A Businessman None 23. Audit conducted at regular intervals throughout the year is called: Continuous Audit Final Audit Internal Audit Government Audit None 24. Auditors should comply with: Financial Reporting Standards Auditing Standards Income Tax Act SEBI Guidelines None 25. The audit process generally starts with: Appointment of an Auditor Issuance of an Audit Report Physical Verification of Stock Checking Bank Reconciliation None 26. The main purpose of audit working papers is to: Maintain secrecy Provide evidence for audit conclusions Help tax authorities Prepare final accounts None 27. A qualified audit report indicates: A clean opinion Discrepancies in accounts No issues in financial statements No errors in books None 28. If an auditor finds fraud, he should: Ignore it Report it to management Modify financial statements Destroy records None 29. The main focus of forensic auditing is: Tax Evasion Fraud Detection Cost Reduction Preparing Accounts None 30. Who appoints the auditor of a public company? Shareholders Board of Directors SEBI Government None 31. Which of the following is considered a real account? Capital Account Cash Account Rent Account Salary Account None 32. The accounting equation is expressed as: Assets = Liabilities + Owner's Equity Assets = Liabilities - Owner's Equity Assets + Liabilities = Owner's Equity Assets - Liabilities = Owner's Equity None 33. Which financial statement summarizes the financial position of a company at a specific point in time? Income Statement Cash Flow Statement Balance Sheet Statement of Retained Earnings None 34. Depreciation is recorded to: Allocate the cost of an asset over its useful life Value the asset at current market price Accumulate funds for asset replacement None of the above None 35. Which of the following errors will not affect the trial balance agreement? Omission of a transaction Recording a transaction twice Posting a debit as credit Errors of principle None 36. In accounting, goodwill is classified as: Current Asset Tangible Asset Intangible Asset Liability None 37. The process of transferring journal entries to ledger accounts is known as: Journalizing Posting Balancing Summarizing None 38. Which of the following is not a method of inventory valuation? First-In, First-Out (FIFO) Last-In, First-Out (LIFO) Highest In, First Out (HIFO) Weighted Average Cost None 39. The primary objective of financial accounting is to: Assist in management decision-making Provide financial information to external users Aid in tax computation Control costs None 40. Which accounting concept dictates that expenses should be matched with the revenues they help to generate? Going Concern Concept Matching Concept Consistency Concept Prudence Concept 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 !! Your quiz time is about to finish. Few seconds left. 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Welcome to your International Navodaya Chamber of Commerce (INCOC) Platform ! Subject: Fundamentals of Accounting and Auditing 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. Goods sent on consignment are recorded in the books of the consignor as: Sales Purchases Stock Expenses None 2. The consignee records the goods received as: Purchases Goods-in-transit No entry is made Liability None 3. In a joint venture, if separate books are maintained, the profit is divided between: Partners Joint venturers Directors Creditors None 4. The person who draws a bill of exchange is known as the: Drawee Drawer Payee Endorser None 5. When a bill is dishonored, the amount is debited to: Debtor’s Account Creditors’ Account Bank Account Suspense Account None 6. Single entry system is also known as: Double-entry system Complete accounting system Account from incomplete records Bank reconciliation system None 7. In a single entry system, which account is generally maintained? Sales Account Cash Account Fixed Assets Account Depreciation Account None 8. Which of the following ratios is used to measure liquidity? Current Ratio Debt-Equity Ratio Return on Investment Earnings Per Share None 9. Net profit margin is calculated as: (Net Profit / Sales) × 100 (Net Profit / Total Assets) × 100 (Net Profit / Equity) × 100 (Net Profit / Cost of Goods Sold) × 100 None 10. A higher Inventory Turnover Ratio indicates: Slow-moving stock Efficient inventory management Higher debt level Increasing expenses None 11. Which of the following audits is performed to verify the efficiency of resource utilization? Financial Audit Cost Audit Performance Audit Internal Audit None 12. A statutory audit is: Voluntary Compulsory for all companies Only for listed companies Required for partnership firms None 13. Which type of audit is mandatory for companies registered under the Companies Act, 2013? Cost Audit Secretarial Audit Statutory Audit Environmental Audit None 14. Internal control is implemented to: Detect fraud after it occurs Minimize errors and fraud Replace external audit Avoid tax payments None 15. Who appoints the internal auditor? Shareholders Government Management Statutory Auditor None 16. Which document is verified when vouching purchases? Sales Invoice Purchase Invoice Bank Statement Credit Note None 17. Which of the following is an example of an asset that requires physical verification? Accounts Receivable Cash at Bank Plant and Machinery Goodwill None 18. Vouching involves: Checking the accuracy of ledger balances Examining supporting documents for transactions Preparing financial statements Auditing financial reports None 19. The audit report is issued by: Management Internal Auditor Statutory Auditor Shareholders None 20. Which of the following is not a type of audit opinion? Unqualified Opinion Qualified Opinion Adverse Opinion Management Opinion None 21. A disclaimer of opinion is issued when: The financial statements are materially misstated The auditor is unable to obtain sufficient audit evidence The company reports a net loss The auditor is satisfied with the financial statements None 22. Which organization issues auditing standards in India? SEBI ICAI ICSI RBI None 23. SA 200 relates to: Audit Planning Responsibilities of an Auditor Going Concern Fraud Detection None 24. Which fundamental principle is followed in auditing? Confidentiality Professional Skepticism Integrity All of the above None 25. A professional auditor must avoid: Independence Objectivity Conflict of Interest Due Care None 26. A code of ethics for auditors ensures: Increased company profits Proper maintenance of accounts Avoidance of tax audits Professional behavior and integrity None 27. Independence of an auditor is essential to ensure: Favorable audit reports True and fair reporting Increased tax benefits Fast audit completion None 28. Depreciation is charged to account for: Increase in asset value Wear and tear of fixed assets Market fluctuations Profit allocation None 29. Which method provides a constant depreciation amount each year? Straight-Line Method Reducing Balance Method Sum-of-Years-Digits Method Units of Production Method None 30. Under which method does depreciation decrease every year? Straight-Line Method Reducing Balance Method Annuity Method None of the above None 31. A bank reconciliation statement is prepared to: Check accounting frauds Compare cash book and bank statement Record new transactions Prepare a balance sheet None 32. A cheque issued but not yet presented for payment will be: Added to the bank balance Deducted from the bank balance Ignored in BRS Added to the cash book balance None 33. Which of the following is a capital receipt? Sale of goods Interest earned Proceeds from sale of fixed assets Rent received None 34. Which of the following is a revenue expenditure? Purchase of machinery Repairs and maintenance expenses Cost of land Installation of a new factory None 35. Accounting standards are issued by: SEBI ICAI RBI Ministry of Finance None 36. IFRS stands for: Indian Financial Reporting Standards International Financial Reporting Standards International Fiscal and Revenue Standards Internal Finance and Risk System None 37. Auditors detect fraud by using: Internal Audit Reports Analytical Procedures Sales Invoices Depreciation Schedules None 38. Which of the following is an example of fraudulent financial reporting? Misrepresentation of revenue Clerical errors in bookkeeping Delayed payments to suppliers Recording incorrect ledger balances due to a mistake None 39. Government audit is conducted by: External auditors CAG (Comptroller and Auditor General) Internal auditors Private auditors None 40. An auditor's independence is compromised if they: Provide tax consultancy Own shares in the company being audited Perform internal audits Use external audit evidence 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 !! Your quiz time is about to finish. Few seconds left. Time's upYou cannot switch tabs while taking this quiz!You are not allowed to switch tabs violation has been recorded.you cannot minimize full screen mode!You are not allowed to minimize full screen while taking this quiz, violation has been recorded.Access denied! 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Welcome to your International Navodaya Chamber of Commerce (INCOC) Platform ! Subject: Fundamentals of Accounting and Auditing 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. The dual aspect concept states that every transaction affects: Only one account Two or more accounts Only income accounts None of the above None 2. Which of the following is not a Fundamental Accounting Assumption? Going Concern Consistency Accrual Materiality None 3. Which of the following is not a type of accounting convention? Conservatism Materiality Business Entity Full Disclosure None 4. Which accounting principle states that expenses should be recognized in the period they are incurred to generate revenue? Conservatism Matching Principle Cost Principle Realization Principle None 5. Which of the following is an example of a real account? Capital Account Sales Account Rent Account Wages Account None 6. Which of the following is not a book of prime entry? Cash Book Sales Journal General Ledger Purchase Journal None 7. What is the normal balance of an expense account? Debit Credit Either Debit or Credit None of the above None 8. Which method of depreciation results in equal depreciation expense each year? Straight-Line Method Written Down Value Method Sum-of-the-Years’ Digits Method Annuity Method None 9. A trial balance checks the: Accuracy of financial statements Mathematical accuracy of ledger accounts Valuation of inventory Revenue recognition None 10. Depreciation is recorded in the books as a/an: Liability Asset Expense Revenue None 11. Which of the following is an example of a capital reserve? General Reserve Share Premium Retained Earnings Workmen Compensation Reserve None 12. The balance sheet is prepared to show: Financial position Profit or Loss Changes in equity Cash Flows None 13. Which of the following is not included in the balance sheet? Cash at Bank Sundry Debtors Salaries Paid Loan Payable None 14. Receipts and Payments Account records transactions on a: Accrual basis Cash basis Hybrid basisNone of the above None of the above None 15. What type of account is a Subscription Account in a non-profit organization? Personal Real Nominal None of the above None 16. Which of the following best defines auditing? Preparing financial statements Checking financial accuracy Examining financial records to express an opinion Maintaining books of accounts None 17. Which of the following is not an objective of auditing? Detection of fraud Prevention of errors Recording transactions Checking compliance with accounting principles None 18. The primary duty of an auditor is to: Detect fraud Prevent fraud Express an opinion on financial statements Maintain financial records None 19. Which of the following audits is conducted voluntarily by the management? Statutory Audit Internal Audit Tax Audit Government Audit None 20. In a cost audit, the auditor examines: Financial records Costing records Taxation details Budget estimates None 21. Internal control aims at: Ensuring adherence to policies Detecting fraud Preparing accounts Paying taxes None 22. A voucher is: A book of accounts An external audit document Evidence supporting a transaction A financial statement None 23. Which of the following is a type of audit opinion? Qualified Opinion General Opinion Internal Opinion External Opinion None 24. Standards on Auditing in India are issued by: RBI ICAI SEBI ICSI None 25. An unqualified audit report means: The auditor has detected fraud The financial statements are materially misstated The financial statements present a true and fair view The audit was not completed None 26. In the absence of a partnership agreement, partners share profits and losses: Equally In capital ratio As per mutual agreement Based on seniority None 27. Goodwill is generally recorded in the books when: It is internally generated A new partner is admitted The business makes losses The business is closed None 28. Which of the following statements about a partner's capital account is correct? Drawings increase the capital balance Interest on capital decreases the capital balance Net profit increases the capital balance Salary to partners is debited to their capital account None 29. Which financial statement shows a company's financial position at a specific date? Income Statement Statement of Cash Flows Balance Sheet Profit and Loss Account None 30. The liability of a shareholder in a company is limited to: The amount of dividends declared The amount of profits earned The unpaid amount on shares held The personal assets of the shareholder None 31. Which of the following is an intangible asset? Machinery Patent Stock Cash None 32. Which activity is classified under financing activities in a Cash Flow Statement? Purchase of machinery Dividend received Issue of shares Interest received None 33. Which of the following appears under "Cash Flow from Operating Activities"? Sale of fixed assets Issue of shares Payment of wages Loan repayment None 34. Audit evidence should be: Sufficient and appropriate Based only on internal records Obtained from a single source Provided only by management None 35. Which type of audit evidence is considered the most reliable? Oral evidence Documentary evidence from independent sources Internal management reports Auditor’s assumptions None 36. Working papers prepared by an auditor should be: Destroyed after the audit Kept as confidential documents Shared with all employees Used only for tax purposes None 37. Which of the following is an example of a compensating error? Sales recorded as purchases Errors canceling each other out Omitting transactions from books Recording expenses as income None 38. Which of the following is an example of fraud? Accidental omission of transactions Overstating revenue intentionally Clerical mistakes in recording transactions Unintentional posting to the wrong account None 39. Which section of the Companies Act, 2013, deals with the appointment of auditors? Section 134 Section 139 Section 148 Section 160 None 40. Which of the following best describes a "qualified audit report"? Financial statements are completely inaccurate Financial statements contain material misstatements No issues are found in financial statements The audit was not conducted 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 !! Your quiz time is about to finish. Few seconds left. 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Welcome to your International Navodaya Chamber of Commerce (INCOC) Platform ! Subject: Fundamentals of Accounting and Auditing 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. In a partnership, the amount invested by partners is called: Loan Capital Interest Dividend None 2. When a partner withdraws money for personal use, it is called: Salary Profit Drawings Commission None 3. Interest on capital is generally allowed if: The partnership agreement provides for it The firm incurs a loss A partner demands it It is approved by the government None 4. Goodwill is recorded in the books when: A new partner is admitted The firm makes losses The partners take loans The firm is dissolved None 5. Which accounting concept assumes that a business will continue to operate indefinitely? Consistency Concept Going Concern Concept Accrual Concept Matching Concept None 6. The cost concept states that assets should be recorded at: Their market value Their original purchase price Their replacement cost Their depreciated value None 7. Which accounting convention ensures that revenue and expenses are recorded in the correct period? Conservatism Accrual Materiality Prudence None 8. The primary role of an internal auditor is to: Prepare financial statements Detect fraud and errors Ensure compliance with internal controls Approve company accounts None 9. Which type of auditor is appointed by shareholders in a company? Internal Auditor External Auditor Tax Auditor Government Auditor None 10. A qualified audit report means: The financial statements are free from material misstatements The auditor found some issues but they are not serious The auditor refuses to express an opinion The company has committed fraud None 11. Which of the following is NOT a type of audit opinion? Unqualified Opinion Qualified Opinion Disclaimer of Opinion Comparative Opinion None 12. The Companies Act, 2013, mandates that every company must: Conduct an audit of its financial statements Avoid taxation Prepare accounts only for management Publish financial statements monthly None 13. Which regulatory body oversees financial reporting in India? SEBI RBI ICAI IRDA None 14. A tax audit is required for businesses with turnover exceeding: ₹50 lakh ₹1 crore ₹5 crore ₹10 crore None 15. When a partnership firm is dissolved, the balance in the capital accounts is transferred to: Realization Account Cash Account Partner’s Capital Account Profit & Loss Account None 16. A company’s capital is divided into: Shares Debentures Reserves Loans None 17. Which type of share gives voting rights to shareholders? Preference Shares Equity Shares Debentures Bonus Shares None 18. Which financial statement shows the company’s financial position at a particular date? Profit & Loss Account Cash Flow Statement Balance Sheet Trial Balance None 19. Which of the following activities is classified under "Operating Activities" in a Cash Flow Statement? Sale of fixed assets Issuing shares Payment to suppliers Purchasing land None 20. Debenture holders are: Owners of the company Creditors of the company Employees of the company Agents of the company None 21. Which account is credited when shares are issued at a premium? Share Capital A/c Securities Premium A/c Bank A/c None of the above None 22. Dividend received is classified under: Operating Activities Investing Activities Financing Activities None of the above None 23. Which of the following is a financing activity? Purchase of raw material Payment of interest Issue of shares Sale of investments None 24. Depreciation is considered a: Cash expense Non-cash expense Financing activity Liability None 25. The primary objective of auditing is to: Detect fraud Verify financial statements Reduce expenses Compute tax liability None 26. One of the advantages of auditing is: Helps in fraud detection Increases business expenses Reduces revenue Avoids taxation None 27. The final responsibility for the financial statements lies with: Auditor Management Shareholders Government None 28. A clerical mistake in accounting records is called: Fraud Misstatement Error Omission None 29. Which of the following is an example of fraud? Overstating revenue Mathematical error Omitting depreciation Incorrect classification of expenses None 30. Errors of omission occur when: A transaction is recorded in the wrong account A transaction is recorded partially or not recorded at all A transaction is recorded in the correct account but in the wrong amount . None of the above None 31. An auditor has the right to access: Financial records only All books of accounts and vouchers Only profit and loss account Shareholders’ personal records None 32. The duty of an auditor is to: Prepare financial statements Express an opinion on financial statements Manage business operations Approve financial transactions None 33. If an auditor finds fraud, they must: Ignore it Report it to management Approve the fraudulent transactions Do nothing None 34. Audit sampling means: Checking all transactions Checking a selected sample of transactions Avoiding testing altogether Preparing financial reports None 35. Which of the following is NOT an audit technique? Observation Inquiry Legal action Analytical procedures None 36. An auditor uses substantive testing to: Review accounting policies Check management’s decisions Verify transaction details Change financial statements None 37. Tax audits are conducted as per: Companies Act, 2013 Income Tax Act, 1961 SEBI Regulations ICAI Guidelines None 38. Cost audits focus on: Compliance with tax laws Verification of cost accounts Detection of fraud Shareholder satisfaction None 39. A forensic audit is used primarily for: Fraud investigation Cost reduction Employee training Preparing balance sheets None 40. Which of the following is an objective of due diligence audit? Identifying risks in business transactions Maximizing profits Reducing financial reporting Avoiding taxation 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 !! Your quiz time is about to finish. Few seconds left. Time's upYou cannot switch tabs while taking this quiz!You are not allowed to switch tabs violation has been recorded.you cannot minimize full screen mode!You are not allowed to minimize full screen while taking this quiz, violation has been recorded.Access denied! To begin the quiz, please grant this quiz access to your camera.Time is Up!Time is Up!
Welcome to your International Navodaya Chamber of Commerce (INCOC) Platform ! Subject: Fundamentals of Accounting and Auditing 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. The concept of conservatism states that: All profits should be recorded as soon as they are earned Anticipate no profit but provide for all possible losses Every transaction should have two effects Business and owner are the same entity None 2. Which of the following is an example of a personal account? Cash Account Capital Account Sales Account Machinery Account None 3. Which of the following is NOT a feature of Accounting Standards (AS)? They ensure uniformity in accounting They reduce chances of fraud They are legally mandatory in all cases They help in comparability of financial statements None 4. Which of the following transactions is recorded in the cash book? Depreciation of machinery Credit purchase of goods Cash sales of goods Goods withdrawn for personal use None 5. Which of the following errors affects the agreement of the Trial Balance? Compensating Error Error of Principle Omission of Transaction Posting to the wrong side of the account None 6. The accounting equation is: Assets = Liabilities + Revenue Assets = Liabilities + Equity Assets = Liabilities + Reserves None of the above None 7. A transaction recorded twice in the books of accounts is called: Error of Principle Compensating Error Error of Duplication Error of Omission None 8. A Trial Balance is prepared to: Check the accuracy of financial statements Check the arithmetical accuracy of books Determine net profit or loss Prepare the balance sheet None 9. A credit note is issued when: Goods are sold on credit Goods are returned by the customer Goods are purchased on credit None of the above None 10. Which book of accounts is also known as the "Principal Book"? Journal Ledger Trial Balance Cash Book None 11. Profit & Loss Account is prepared to determine: Total assets Net Profit or Loss Owner’s capital Total expenses None 12. Outstanding expenses are shown in the: Trading Account Profit & Loss Account Balance Sheet (Liability side) Both B & C None 13. Goodwill is classified as: Current Asset Intangible Asset Fixed Asset Current Liability None 14. The term “depreciation” is associated with: Fixed Assets Current Liabilities Revenue Expenditure Current Assets None 15. The main purpose of preparing a Bank Reconciliation Statement (BRS) is to: Check errors in bank transactions Find differences between bank passbook & cash book Record interest earned from the bank Adjust overdraft balance None 16. The scope of an audit is determined by: The auditor’s choice The terms of engagement The taxation laws The finance department None 17. A statutory audit is conducted under: Company Law Income Tax Law Sales Tax Law Banking Regulation Act None 18. Audit planning is done to: Identify key risk areas Detect frauds Check financial statements Avoid errors in bookkeeping None 19. The primary duty of an auditor is to: Detect fraud Verify financial statements Maintain accounts Prepare financial reports None 20. The auditor’s opinion is expressed in: Trial Balance Balance Sheet Audit Report Cash Book None 21. Internal control aims to: Prepare financial statements Detect fraud Safeguard assets & ensure efficiency Prepare audit reports None 22. An audit working paper is: A final report A record of audit evidence A legal document A financial statement None 23. The “true and fair view” concept in auditing means: Financial statements are free from bias Financial statements are completely accurate No errors exist in the books The company is profitable None 24. Which of the following is an example of a capital expenditure? Payment of rent Salary to employees Purchase of machinery Payment for raw materials None 25. The process of recording transactions in the books of accounts is known as: Summarizing Journalizing Posting Classifying None 26. If closing stock is not recorded in the trial balance, its effect in the financial statements will be: Gross profit will be understated Net profit will be overstated Gross profit will be overstated No effect None 27. Which statement is correct regarding depreciation? It is charged only on current assets It is charged to ascertain net profit or loss It is considered as a capital receipt It increases the value of assets None 28. Prepaid expenses appear in the: Trading Account Profit and Loss Account Balance Sheet under Assets Balance Sheet under Liabilities None 29. Which of the following is not a contingent liability? Bills discounted but not yet matured Unclaimed dividends Guarantees given on behalf of others Pending litigation None 30. Vouching in auditing refers to: Examination of cash transactions Checking financial statements Verifying accounts books Comparing records with supporting documents None 31. The main objective of an audit is to: Detect fraud Check financial statements Prevent errors Evaluate employees None 32. An auditor is appointed by: Shareholders Board of Directors Government Company Secretary None 33. Which of the following is not a type of audit? Statutory Audit Social Audit Market Audit Internal Audit None 34. The auditor’s report is addressed to: Management Government Shareholders Employees None 35. In an audit, internal control refers to: Procedures ensuring efficiency in operations Verification of financial statements Controlling internal financial transactions Preventing external audit None 36. The capital of a business is classified as: Liability Asset Expense Revenue None 37. Accrued income appears on the: Profit & Loss Account Trading Account Balance Sheet (Assets side) Balance Sheet (Liabilities side) None 38. A partnership firm must be registered under which Act? Companies Act, 2013 Indian Partnership Act, 1932 Income Tax Act, 1961 Contract Act, 1872 None 39. A suspense account is opened when: There is a trial balance difference The auditor finds errors A fraud is detected A new business starts None 40. Discount allowed to debtors is classified as: Expense Liability Asset Capital 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 !! Your quiz time is about to finish. Few seconds left. Time's upYou cannot switch tabs while taking this quiz!You are not allowed to switch tabs violation has been recorded.you cannot minimize full screen mode!You are not allowed to minimize full screen while taking this quiz, violation has been recorded.Access denied! 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Welcome to your International Navodaya Chamber of Commerce (INCOC) Platform ! Subject: Fundamentals of Accounting and Auditing 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. Which accounting principle states that revenue should be recognized when it is earned? Going Concern Consistency Accrual Prudence None 2. The "dual aspect" concept in accounting states that: Every transaction affects two accounts Only expenses are recorded Liabilities are ignored Only revenues are recorded None 3. The branch of accounting that focuses on providing information to external users is: Cost Accounting Management Accounting Financial Accounting Tax Accounting None 4. Which of the following is not a financial statement? Balance Sheet Profit and Loss Account Trial Balance Cash Flow Statement None 5. What is the purpose of the "Going Concern" concept? To assume that a business will continue indefinitely To measure profit accurately To record all transactions in historical cost To allocate expenses to the right period None 6. Which book is considered the "original book of entry"? Ledger Trial Balance Journal Balance Sheet None 7. A credit balance in a ledger account generally represents: An asset An expense A liability or income A withdrawal None 8. Which error is revealed by a Trial Balance? Compensating error Omission error Arithmetical error Error of principle None 9. A debit entry in an asset account represents: A decrease in asset An increase in asset A liability A revenue None 10. When the total of the debit column in the trial balance is more than the credit column, it indicates: An error in balancing A net loss A net profit An increase in capital None 11. Prepaid expenses are classified under: Assets Liabilities Capital Revenue None 12. The balance sheet shows: Financial position of a business Profitability of a business Cash flow of a business None of the above None 13. Closing stock is shown in: Trading Account Profit and Loss Account Balance Sheet Both a and c None 14. Outstanding expenses are classified as: Asset Liability Equity Income None 15. A contingent liability is recorded: In the Balance Sheet as an asset In the Profit & Loss Account In the footnotes of financial statements Nowhere in the accounts None 16. The primary objective of an audit is to: Detect fraud Express an opinion on financial statements Prepare financial statements Maintain accounts None 17. Which type of audit is conducted for a government department? Internal Audit Statutory Audit Compliance Audit Government Audit None 18. Who appoints the first auditor of a company? Shareholders Board of Directors Company Secretary Government None 19. Which document is prepared at the end of an audit? Balance Sheet Audit Report Cash Flow Statement Journal Entry None 20. Vouching in auditing means: Examining transactions with supporting documents Checking profit and loss account Preparing financial statements Verifying internal controls None 21. The Companies Act requires the auditor to report to: The Board of Directors The Shareholders The Tax Authorities The Employees None 22. Internal audit is conducted by: External auditor Company’s own staff Government officials Tax authorities None 23. An auditor detects fraud primarily through: Sampling Internal controls Detailed checking Surprise audits None 24. The scope of an audit is determined by: The auditor’s discretion The terms of engagement The government regulations The finance department None 25. The term ‘true and fair view’ relates to: Balance Sheet only Profit and Loss Account only Financial Statements as a whole Bank statements None 26. Which of the following errors will NOT affect the Trial Balance? Error of omission Error of principle Error of commission Error of posting to the wrong account with the correct amount None 27. If a company purchases machinery worth ₹50,000, which account is debited? Purchases Account Machinery Account Capital Account Cash Account None 28. Depreciation is charged due to which accounting principle? Consistency Matching Business Entity Money Measurement None 29. Which account is not considered a real account? Machinery Account Cash Account Sales Account Land Account None 30. In case of bad debts recovered, the correct journal entry is: Debit Bad Debts Account, Credit Cash Account Debit Cash Account, Credit Bad Debts Recovered Account Debit Debtors Account, Credit Bad Debts Account Debit Profit & Loss Account, Credit Cash Account None 31. Bank reconciliation statement is prepared to: Know the bank balance Compare cash book with bank statement Record all cash transactions Detect fraud None 32. Which of the following is NOT a part of working capital? Cash Debtors Fixed Assets Inventory None 33. A company’s paid-up share capital consists of: Called-up capital minus calls in arrears Subscribed capital minus calls in arrears Authorized capital Issued capital minus unpaid portion None 34. Which accounting standard deals with "Accounting for Fixed Assets"? AS-6 AS-9 AS-10 AS-3 None 35. When a company issues shares at a price higher than the face value, the excess amount is credited to: Share Capital Account Securities Premium Account Profit and Loss Account General Reserve None 36. Which of the following is an example of an intangible asset? Land Goodwill Machinery Inventory None 37. Internal check is a part of: Internal audit External audit Statutory audit Government audit None 38. Which of the following is NOT a type of audit? Operational Audit Tax Audit Market Audit Management Audit None 39. Who appoints the statutory auditor of a public company? Board of Directors Government Shareholders Managing Director None 40. The main objective of vouching in auditing is to: Detect fraud Verify transactions with supporting documents Check profit calculation Maintain books of accounts 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 !! Your quiz time is about to finish. Few seconds left. Time's upYou cannot switch tabs while taking this quiz!You are not allowed to switch tabs violation has been recorded.you cannot minimize full screen mode!You are not allowed to minimize full screen while taking this quiz, violation has been recorded.Access denied! To begin the quiz, please grant this quiz access to your camera.Time is Up!Time is Up!
