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. Which of the following is not a fundamental accounting assumption? Going Concern Consistency Prudence Accrual None 2. A company purchased machinery for ₹10,00,000. The expected life is 10 years, with no residual value. What will be the depreciation under the straight-line method for one year? ₹1,00,000 ₹50,000 ₹10,00,000 ₹2,00,000 None 3. If wages paid for construction work is debited to the Wages Account, the rectification will require: Credit to Construction Account. Debit to Construction Account Credit to Wages Account No adjustment None 4. In the absence of a partnership deed, the interest on partners’ loans is allowed at 12% per annum 6% per annum 8% per annum 0% None 5. In an amalgamation in the nature of merger, the resulting company records the assets and liabilities of the amalgamating companies: At their fair value At book value At market value At revalued amounts None 6. Goods costing ₹2,00,000 were sent on consignment at an invoice price with a profit margin of 20%. What is the invoice price? ₹2,00,000 ₹2,40,000 ₹2,50,000 ₹2,20,000 None 7. Which of the following is an investing activity? Issue of equity shares Purchase of fixed assets Payment of dividends Increase in working capital None 8. The drawer of a bill of exchange is the person: Who accepts the bill To whom the payment is made Who draws or makes the bill None of the above None 9. Which of the following inventory valuation methods is not acceptable under AS-2? FIFO LIFO Weighted Average Specific Identification None 10. Which of the following is a limitation of the single-entry system? It is simple and easy to maintain It does not show the true financial position It helps to detect errors and frauds It is suitable for small businesses None 11. In the stock and debtor system, the goods sent to the branch are recorded at: Cost price Invoice price Selling price Market price None 12. Under the hire purchase system, ownership of goods is transferred: At the time of agreement On payment of the last installment When goods are delivered None of the above None 13. Which of the following items is debited to the Income and Expenditure Account? Donations received for building Salaries paid to staff Purchase of equipment Subscription received None 14. Accounting Standard (AS) 10 deals with: Inventories Depreciation Accounting Fixed Assets Revenue Recognition None 15. The profit or loss on a joint venture is shared by the co-venturers: In the capital ratio In the agreed ratio Equally In the profit-sharing ratio None 16. A suspense account is opened to: Rectify all types of errors Adjust opening stock Rectify errors affecting the trial balance Record personal expenses None 17. A Contra entry in a cash book is required when: Cash is received from debtors Cash is deposited into the bank Goods are sold for cash Bank charges are deducted None 18. Which accounting concept emphasizes recording expenses when incurred and revenues when earned? Conservatism Matching Accrual Consistency None 19. On dissolution of a partnership, the firm’s liabilities are settled in which order? Outside liabilities, partner’s capital, then partner’s loans Partner’s loans, partner’s capital, then outside liabilities Outside liabilities, partner’s loans, then partner’s capital Partner’s capital, partner’s loans, then outside liabilities None 20. Under absorption costing, which of the following is included in the cost of production? Direct costs only Variable costs only Fixed overheads only Both fixed and variable overheads None 21. Which method of depreciation results in higher depreciation expense in the earlier years? Straight-line method Written-down value method Units of production method None of the above None 22. When interest on investments is received, it is recorded in: Capital Account Income Account Bank Account Trading Account None 23. Prepaid expenses are shown in the balance sheet as: Current liabilities . Non-current assets Current assets None of the above None 24. If abnormal loss occurs in consignment accounting, the amount of loss is: Debited to Consignment Account Credited to Consignment Account Debited to Profit & Loss Account Ignored None 25. When a bill is renewed, the old bill is: Discounted Canceled Accepted Dishonored None 26. Single entry system is generally used by: Large-scale businesses Non-profit organizations Sole proprietorships and small businesses Partnership firms None 27. A firm is dissolved due to: Admission of a partner Retirement of a partner Death of a partner Mutual agreement among partners None 28. Errors of commission arise due to: Misposting Incorrect total of subsidiary books Both (a) and (b) None of the above None 29. Provision for doubtful debts is an example of: Revenue reserve Capital reserve Contingent liability Charge against profits None 30. Life membership fees in a non-profit organization are: Revenue income Deferred revenue income Capital receipt None of the above None 31. Goodwill brought in by a new partner is credited to: Profit and Loss Account Goodwill Account Partners’ Capital Accounts Revaluation Account None 32. An error of omission occurs when: A transaction is recorded in the wrong account A transaction is completely omitted from the books A transaction is recorded with an incorrect amount A transaction is recorded in the wrong subsidiary book None 33. The value of goodwill is calculated at 2 years’ purchase of average profit. If the profits for 3 years are ₹50,000, ₹60,000, and ₹70,000, the value of goodwill is: ₹60,000 ₹1,20,000 ₹1,30,000 ₹2,00,000 None 34. Which of the following items will not appear in the Bank Reconciliation Statement? Cheques issued but not presented Cheques deposited but not credited Direct payments by the bank Entries already recorded in the cash book None 35. Under the perpetual inventory system, inventory is updated: At the end of the accounting year At the time of each purchase or sale Only when physical stocktaking is done When preparing financial statements None 36. When royalty is paid based on output, it is debited to: Profit and Loss Account Trading Account Royalty Payable Account Royalty Account None 37. Which of the following is not part of the final accounts? Trial balance Profit and Loss Account Balance Sheet Trading Account None 38. If shares are issued at a premium, the premium amount is credited to: Share Capital Account Profit and Loss Account Securities Premium Account Reserve and Surplus Account None 39. Profit and Loss Appropriation Account is prepared to: Show the profit/loss for the year Distribute profit among partners Adjust capital balances Record all expenses and incomes 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!
