Welcome to your International Navodaya Chamber of Commerce (INCOC) Platform ! Subject: Advanced 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. AS-1 relates to: Depreciation Accounting Disclosure of Accounting Policies Accounting for Fixed Assets Revenue Recognition None 2. A contingent liability is disclosed: In the profit and loss account In the balance sheet In the notes to accounts No disclosure required None 3. Which accounting concept requires the preparation of financial statements at regular intervals? Going Concern Consistency Periodicity Matching None 4. When an amount is spent on major repairs of machinery to increase its efficiency, it is: Revenue Expenditure Deferred Revenue Expenditure Capital Expenditure Preliminary Expenditure None 5. The accounting equation is represented as: Assets = Liabilities + Equity Liabilities = Assets – Equity Equity = Assets + Liabilities Assets = Liabilities – Equity None 6. According to AS-2, inventories are valued at: Market Price Cost Price Cost or Net Realizable Value, whichever is higher Cost or Net Realizable Value, whichever is lower None 7. Under the diminishing balance method of depreciation, depreciation is calculated on: a) Original cost Original cost Written down value Scrap value None of the above None 8. What is the accounting treatment for bad debts recovered? Credited to Bad Debts Account Debited to Profit and Loss Account Credited to Profit and Loss Account Credited to Debtors Account None 9. According to the Companies Act, what is the maximum number of years for which books of accounts need to be preserved? 4 years 6 years 8 years 10 years None 10. Which of the following is NOT a part of the trial balance? Revenue Liabilities Equity Contingent liabilities None 11. Prepaid expenses are classified as: Liability Asset Revenue Expense None 12. In a consignment transaction, the consignee earns: Commission Profit Rent Discount None 13. The balance of the Suspense Account is transferred to: Profit and Loss Account Capital Account Balance Sheet None of the above None 14. What is the treatment of goodwill on the admission of a new partner? Credited to the new partner’s account Distributed among all partners Adjusted among old partners in the gaining ratio Credited to the revaluation account None 15. The cash book does not record: Cash transactions Credit sales Bank transactions Discounts allowed None 16. Depreciation is charged on: Current liabilities Fixed assets Current assets Intangible assets only None 17. Bank reconciliation statements are prepared to reconcile: Trial balance with bank statements Cash book with passbook Creditors with passbook Debtors with cash book None 18. Carriage inward is shown in the: Trading Account Profit and Loss Account Balance Sheet Cash Book None 19. The difference between Gross Profit and Net Profit is: Operating Expenses Indirect Expenses Cost of Goods Sold Direct Expenses None 20. Outstanding expenses are classified as: Revenue Liability Asset Capital None 21. Rent received in advance is shown as: Income Expense Liability Asset None 22. Accrued income is: An asset A liability An expense A capital reserve None 23. Bills Receivable is a: Liability Asset Revenue Expense None 24. The primary objective of accounting is: To prepare tax returns To assist management in decision-making To ascertain profitability and financial position To reconcile bank statements None 25. A trial balance is prepared to: Ascertain the net profit Check the arithmetical accuracy of accounts Prepare the balance sheet Calculate depreciation None 26. The profit-sharing ratio in the absence of an agreement is: Equal Capital ratio Based on time None of the above None 27. Bank overdraft is classified as: Asset Liability Revenue Expense None 28. Which of the following is a contingent liability? Bank overdraft Outstanding expenses Guarantee given for a loan Prepaid expenses None 29. Which of the following is not a fixed asset? Land Buildings Machinery Debtors None 30. A cheque issued but not presented for payment is: Added to the cash book balance Deducted from the cash book balance Shown as a liability Ignored None 31. The depreciation method suitable for mines is: Straight-line method Diminishing balance method Units of production method Written-down value method None 32. Which account is prepared to ascertain the profit or loss of a branch? Branch Adjustment Account Branch Profit and Loss Account Branch Debtors Account None of the above None 33. Preliminary expenses are Revenue expenditure Capital expenditure Deferred revenue expenditure Not an expenditure None 34. Which of the following errors affect the trial balance? Errors of omission Errors of commission Errors of principle Errors of casting None 35. Provision for doubtful debts is: A liability An asset An expense A revenue reserve None 36. Share capital is shown under: Liabilities Assets Reserves Equity and Liabilities None 37. AS-10 deals with: Accounting for Fixed Assets Consolidated Financial Statements Leases Cash Flow Statements None 38. Which of the following is NOT considered a cash equivalent? Treasury bills Bank overdraft Fixed deposits (maturity > 3 months) Commercial paper None 39. Which method of inventory valuation results in the lowest net income during periods of rising prices? FIFO LIFO Weighted Average Specific Identification None 40. According to AS-9, revenue from the sale of goods is recognized when: Goods are dispatched Invoice is raised Risk and rewards are transferred Payment is received 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!
