Welcome to your International Navodaya Chamber of Commerce (INCOC) Platform ! Subject: AccountingTotal Number of Question: 40Time: 41 MinutesPlease check your email after completion of test for result.All the best... Name Phone No Email State 1. The principle that revenue is recognized when earned, regardless of when received, is: Matching principle Accrual principle Consistency principle Realization principle None 2. The dual aspect concept states: Assets = Liabilities Assets + Liabilities = Capital Assets = Liabilities + Capital None of the above None 3. Which accounting standard deals with "Disclosure of Accounting Policies"? AS 1 AS 2 AS 3 AS 10 None 4. Valuation of inventory should be done based on: Cost price Market price Cost or net realizable value, whichever is lower None of the above None 5. The journal entry for the purchase of goods on credit is: Purchases A/c Dr. To Cash A/c Cash A/c Dr. To Purchases A/c Purchases A/c Dr. To Creditor's A/c Creditor's A/c Dr. To Purchases A/c None 6. What is the entry to record the payment of wages? Wages A/c Dr. To Cash A/c Cash A/c Dr. To Wages A/c Wages A/c Dr. To Bank A/c None of the above None 7. Depreciation is charged because of: Fluctuations in market value Physical wear and tear Permanent appreciation in the value of an asset Both b and c None 8. Under which method does depreciation decrease year by year? Straight Line Method Written Down Value Method Sum of the Years’ Digits Method Units of Production Method None 9. The balance sheet shows: Financial position of a business Profitability of a business Cash flow of a business None of the above None 10. Prepaid expenses appear on the balance sheet under Current liabilities Current assets Fixed assets Long-term liabilities None 11. An error of omission affects: The trial balance The profit and loss account Both a and b None of the above None 12. If wages are debited to the machinery account, it is an error of: Principle Commission Omission None of the above None 13. Goodwill is valued at: Average profits method Super profit method Capitalization method Any of the above None 14. The profit-sharing ratio in a partnership is determined by: Partnership deed Decision of partners Equal sharing in the absence of an agreement All of the above None 15. Which of the following is not a feature of preference shares? Fixed dividend Voting rights Preference in payment of dividend Redeemable None 16. 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 17. Cash Flow Statement is prepared as per: AS 3 AS 7 AS 10 AS 1 None 18. Cash receipts from the sale of goods are classified under: Operating activities Investing activities Financing activities None of the above None 19. Which of the following is a nominal account? Cash Account Sales Account Machinery Account Debtors Account None 20. Accounting equation ensures: Income = Expenses Assets = Liabilities Assets = Liabilities + Equity Cash = Capital None 21. A ledger is known as: Principal book of accounts Subsidiary book Memorandum book None of the above None 22. Trial Balance is prepared to check: The arithmetical accuracy of accounts The financial position of the business Profit or loss of the business None of the above None 23. Bank overdraft as per cash book is: An asset A liability An expense A revenue None 24. The main purpose of preparing a Bank Reconciliation Statement is to: Compare cash book and passbook balances Find errors in cash book entries Rectify passbook errors All of the above None 25. Which of the following is a capital expenditure? Purchase of machinery Repairs of machinery Wages paid for daily labor Office supplies purchase None 26. Revenue receipts are recorded in: Balance sheet Profit and loss account Cash flow statement Appropriation account None 27. Interest on investment is classified under: Operating activities Investing activities Financing activities None of the above None 28. If market value exceeds cost, investments are shown in financial statements at: Market value Cost price Higher of cost or market value None of the above None 29. The periodic inventory system records inventory: At the end of the accounting period Continuously Only during purchase transaction None of the above None 30. Inventory valuation is governed by: AS 2 AS 1 AS 3 AS 9 None 31. The method of depreciation where an equal amount is charged every year is called: Written Down Value Method Straight Line Method Sum of the Digits Method Double Declining Balance Method None 32. A machine purchased for ₹1,00,000 is expected to have a salvage value of ₹10,000 after 10 years. Depreciation under the straight-line method per year is: ₹9,000 ₹10,000 ₹11,000 ₹12,000 None 33. Sacrificing ratio in partnership is calculated at the time of: Admission of a new partner Retirement of a partner Dissolution of partnership None of the above None 34. Revaluation account is prepared to: Revalue assets and liabilities Calculate goodwill Compute profit-sharing ratio None of the above None 35. Subscription received in advance is shown in the balance sheet as: Current liability Current asset Revenue income None of the above None 36. Income and Expenditure Account is prepared: On accrual basis On cash basis On mixed basis None of the above None 37. The net profit as per Profit and Loss Account is transferred to: Trading Account Capital Account Balance Sheet None of the above None 38. Closing stock is shown in: Trading Account Profit and Loss Account Balance Sheet Both a and c None 39. Drawings by the owner should be: Debited to capital account Credited to capital account Debited to drawings account Credited to drawings account None 40. Provision for bad debts is: A liability An asset A reserve A charge against profits 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. 1 2 3 4 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!
