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 accounting principle ensures consistency over accounting periods? Going Concern Consistency Principle Matching Principle Prudence Principle None 2. What is the journal entry to record depreciation? Debit Depreciation Expense; Credit Accumulated Depreciation Debit Accumulated Depreciation; Credit Depreciation Expense Debit Fixed Asset; Credit Depreciation Expense Debit Cash; Credit Accumulated Depreciation None 3. If goods worth ₹5,000 were incorrectly recorded as purchases, what is the rectifying entry? . Debit Purchases ₹5,000; Credit Sales ₹5,000 Debit Sales Return ₹5,000; Credit Purchases ₹5,000 Debit Drawings ₹5,000; Credit Purchases ₹5,000 Debit Purchases ₹5,000; Credit Drawings ₹5,000 None 4. What is the primary objective of preparing a trial balance? Detect all errors in the accounts Ensure arithmetical accuracy of ledger accounts Prepare financial statements Allocate indirect expenses None 5. Which of the following errors will not affect the trial balance? Error of omission Error of commission Compensating error All of the above None 6. A partnership firm has a net profit of ₹1,00,000. Interest on capital is ₹10,000, and salary to partners is ₹20,000. What is the divisible profit? ₹70,000 ₹80,000 ₹1,00,000 ₹90,000 None 7. Under which accounting concept is stock valued at cost or market price, whichever is lower? Matching concept Prudence concept Going concern concept Consistency concept None 8. Which of the following is shown on the debit side of the trading account? Gross profit Opening stock Sales Purchase returns None 9. Bank reconciliation statement is prepared to: Reconcile cash balances Compare book and bank balances Record bank transactions Rectify errors in cashbook None 10. Depreciation on plant is charged at 10% per annum. What will be the book value of the plant after two years if its cost is ₹1,00,000? ₹81,000 ₹90,000 ₹80,000 ₹72,900 None 11. Which account is debited when a bad debt is recovered? Bad Debts Account Profit and Loss Account Bad Debts Recovered Account Bank Account None 12. Which method of depreciation provides a uniform charge over the useful life of an asset? Straight-line method Written-down value method Sum-of-years-digits method Annuity method None 13. An asset purchased for ₹50,000 has a residual value of ₹10,000 and a useful life of 5 years. What is the annual depreciation under the straight-line method? ₹10,000 ₹8,000 ₹12,000 ₹5,000 None 14. Revenue is recognized when it is: Received in cash Earned Recorded in the books Approved by the manager None 15. Goods worth ₹2,000 are given as charity. What is the journal entry? Debit Purchases; Credit Sales Debit Charity; Credit Sales Debit Charity; Credit Purchases Debit Charity; Credit Cash None 16. Which of the following is an intangible asset? Land Building Goodwill Stock None 17. An increase in expenses is recorded as a Debit Credit Asset Liability None 18. If the overdraft as per the cash book is ₹10,000, and cheques issued but not presented amount to ₹2,000, what is the overdraft as per the bank statement? ₹12,000 . ₹8,000 ₹10,000 ₹2,000 None 19. What is the purpose of preparing a receipts and payments account? Record profit Record transactions on an accrual basis Record transactions on a cash basis Prepare the balance sheet None 20. Which accounting standard relates to depreciation? AS 9 AS 10 AS 6 (superseded by Ind AS 16) AS 2 None 21. Goods withdrawn by the proprietor for personal use, ₹5,000, were recorded as sales. What is the rectifying entry? Debit Drawings; Credit Purchases Debit Drawings; Credit Sales Debit Sales; Credit Drawings Debit Purchases; Credit Drawings None 22. Wages for installation of machinery, ₹2,000, were debited to the wages account. How is this error rectified? Debit Machinery; Credit Wages Debit Installation Expense; Credit Wages Debit Wages; Credit Machinery Debit Profit and Loss; Credit Machinery None 23. A sales return of ₹1,200 was recorded as purchases. The rectifying entry is: Debit Purchases; Credit Sales Return Debit Sales Return; Credit Purchases Debit Sales; Credit Purchases Debit Purchases; Credit Sales None 24. A credit sale of ₹10,000 to Ram was omitted. The rectification entry is: Debit Cash; Credit Ram Debit Ram; Credit Sales Debit Sales; Credit Ram Debit Purchases; Credit Ram None 25. The profit and loss account shows: Financial position Trading results Assets and liabilities Operating cycle None 26. What is the treatment of prepaid expenses in final accounts? Deducted from the respective expense Added to the respective expense Shown as a liability Ignored None 27. The amount of bad debts recovered is shown in the: Trading account Profit and loss account Balance sheet Cash flow statement None 28. Accrued income appears in the: Trading account Balance sheet Profit and loss account Cash book None 29. In a partnership firm, the partners share profits in the ratio of 3:2. What is the share of Partner A if the total profit is ₹50,000? ₹30,000 ₹20,000 . ₹25,000 ₹35,000 None 30. Interest on capital is credited to: Profit and Loss Account Partners’ Current Account Partners’ Capital Account Drawings Account None 31. How are goodwill adjustments made when a new partner is admitted? Credited to the new partner's capital account Debited to the new partner's capital account Credited to old partners in the sacrificing ratio Debited to the revaluation account None 32. Under the written-down value method, depreciation is calculated on: Original cost Residual value Book value None of the above None 33. A machine costing ₹1,00,000 is depreciated at 10% p.a. using the written-down value method. What is the depreciation for the second year? ₹10,000 ₹9,000 ₹8,000 ₹12,000 None 34. Which of the following methods assumes that inventory purchased first is sold fi LIFO FIFO Weighted Average Specific Identification None 35. The cost of ending inventory is determined using the weighted average method. The cost of goods available is ₹50,000 for 5,000 units. What is the cost per unit? ₹5 ₹10 ₹15 ₹20 None 36. Subscriptions received in advance are shown as: Liability Asset Income Expense None 37. In the income and expenditure account, donations for a specific purpose are: Credited as income Debited as expense Shown as liability Shown as asset None 38. Which of the following items is not included in cash flow from operating activiti Net profit Depreciation Sale of machinery Changes in working capital None 39. If capital at the beginning is ₹1,00,000 and capital at the end is ₹1,20,000 after adding drawings of ₹10,000, what is the net profit? ₹10,000 ₹20,000 ₹30,000 ₹40,000 None 40. The entry to record bad debts written off is: Debit Profit and Loss; Credit Debtors Debit Debtors; Credit Bad Debts Debit Bad Debts; Credit Debtors Debit Cash; Credit Bad Debts 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! 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