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. Which concept ensures that financial statements provide relevant, complete, and unbiased information? Materiality Full disclosure Prudence. Matching None 2. A firm decides to use the same depreciation method every year. This follows the: Consistency concept Conservatism concept Matching concept Business entity concept None 3. A sale of ₹5,000 was credited to the Purchases account. The rectification entry is: Debit Sales; Credit Purchases Debit Purchases; Credit Sales Debit Sales; Credit Cash Debit Cash; Credit Purchases None 4. Goods costing ₹2,000 taken by the owner for personal use were not recorded. The rectification entry is: Debit Drawings; Credit Purchases Debit Purchases; Credit Drawings Debit Sales; Credit Drawings Debit Drawings; Credit Sales None 5. Prepaid expenses are shown in the balance sheet as: Current liability Current asset Fixed asset Capital None 6. What does the trading account calculate? Net profit Gross profit Operating profit Financial position None 7. A machine costing ₹1,00,000 has a residual value of ₹10,000 and a useful life of 5 years. What is the annual depreciation under the straight-line method? ₹18,000 ₹20,000 ₹22,000 ₹15,000 None 8. Which method of depreciation results in higher depreciation charges in the initial years? Straight-line method Written-down value method Annuity method Depletion method None 9. Under the FIFO method, which inventory is sold first? Oldest inventory Newest inventory Average cost inventory . Lowest-cost inventory None 10. Which accounting standard deals with inventory valuation? AS 1 AS 2 AS 6 AS 10 None 11. Interest on drawings is: Credited to the profit and loss account Debited to the partner’s capital account Credited to the partner’s capital account Credited to the firm’s profit and loss account None 12. When a new partner brings goodwill in cash, it is credited to: Revaluation account Capital account of old partners Profit and loss account Current account of the new partner None 13. Subscription received in advance is shown as: Revenue income Current liability Capital receipt Current asset None 14. Entrance fees for a non-profit organization are treated as: Capital receipt Revenue income Either capital or revenue income None of the above None 15. Which of the following is not a current asset? Inventory Trade receivables Cash in hand Goodwill None 16. A contingent liability is shown: As an expense in the profit and loss account In the notes to accounts As a liability in the balance sheet . As an asset None 17. A trial balance is prepared to: Check the arithmetical accuracy of the books Determine net profit Prepare financial statements Record adjusting entries None 18. Provision for doubtful debts is created to: Reduce net profit Show true and fair financial results Decrease debtors All of the above None 19. The capital of a business increases when: Owner withdraws cash Interest on drawings is charged Additional capital is introduced There is a loss None 20. Which of the following is not a revenue expense? Salaries paid Rent paid Purchase of raw material Purchase of machinery None 21. Revenue is recorded when it is earned, regardless of when payment is received. This is based on: Matching concept Accrual concept Realization concept Prudence concept None 22. The assumption that an enterprise will continue in operation for the foreseeable future is known as: Going concern concept Consistency concept Materiality concept Business entity concept None 23. Which concept states that personal transactions of the owner should not be recorded in the business books? Dual aspect concept Business entity concept Consistency concept Matching concept None 24. Under which concept are assets recorded at their purchase price? Prudence Historical cost Realization Accrual None 25. Closing stock appears in the: Trading account Profit and loss account Balance sheet Both Trading account and Balance sheet None 26. Provision for doubtful debts is: Added to bad debts Subtracted from trade receivables Shown as a liability Subtracted from cash None 27. What is the primary objective of a balance sheet? To find out profit To show financial position To reconcile bank accounts To ascertain capital None 28. Goodwill appears in the balance sheet under: Current assets Intangible assets Reserves and surplus Investments None 29. If a partner withdraws ₹5,000 every month, what will be the total interest on drawings for the year at 6% p.a.? ₹1,500 ₹1,800 ₹900 ₹1,200 None 30. When a new partner is admitted, the old partners share the sacrifice in: Gaining ratio Sacrificing ratio Old profit-sharing ratio New profit-sharing ratio None 31. What is the treatment of accumulated profits and losses at the time of dissolution of a partnership? Transferred to the new partner’s account Distributed among all partners in the profit-sharing ratio Credited to the revaluation account Ignored None 32. A partnership firm’s capital account is usually: Prepared under the fixed capital method Prepared under the fluctuating capital method Prepared under both methods Not prepared at all None 33. Under which method does depreciation reduce annually on the written-down value of the asset? Straight-line method Written-down value method Annuity method None of the above None 34. The total depreciation under both the straight-line method and the written-down value method will: Always differ Always be the same Differ depending on the residual value None of the above None 35. If purchase returns of ₹500 are recorded as sales returns, the rectifying entry is: Debit Sales Return; Credit Purchase Return Debit Purchase Return; Credit Sales Return. Debit Purchases; Credit Sales Debit Sales; Credit Purchases None 36. Goods purchased for ₹1,000 were wrongly debited to the machinery account. What is the rectification entry? Debit Purchases; Credit Machinery Debit Machinery; Credit Purchases Debit Profit and Loss; Credit Purchases Debit Cash; Credit Machinery None 37. Inventory valuation affects: Cost of goods sold . Gross profit Net profit All of the above None 38. The lower of cost or net realizable value is based on the: Matching principle Consistency principle Prudence principle Historical cost principle None 39. Entrance fees are generally treated as: Revenue receipt Capital receipt Either capital or revenue receipt None of the above None 40. Legacies received are shown in the: Income and expenditure account Receipts and payments account Balance sheet Trading account 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!
