Welcome to your International Navodaya Chamber of Commerce (INCOC) Platform ! Subject: Financial Accounting Total Number of Question: 40 Time: 41 Minutes Please check your email after completion of test for result. All the best... Name Phone No Email State 1. Which financial statement summarizes revenues and expenses over a period? Balance Sheet Income Statement Cash Flow Statement Statement of Retained Earnings None 2. The amount invested by the owner in a business is called: Liability Asset Capital Expense None 3. Which of the following is classified as an indirect expense? Cost of Goods Sold Depreciation Raw Material Cost Freight Inward None 4. Which account is debited when a bad debt is written off? Debtor's Account Bad Debts Account Cash Account Profit and Loss Account None 5. Purchase of machinery is recorded in the: Journal Proper Purchases Book Cash Book Sales Book None 6. Outstanding rent is shown in the balance sheet as a: Current Asset Current Liability Fixed Asset Intangible Asset None 7. The process of transferring journal entries to ledger accounts is known as: Journalizing Posting Summarizing Balancing None 8. Interest on drawings is: Debited to the Capital Account Credited to the Capital Account Debited to the Drawings Account Credited to the Drawings Account None 9. Which accounting standard deals with "Valuation of Inventories"? AS-1 AS-2 AS-3 AS-9 None 10. Preliminary expenses are classified as: Revenue Expenditure Deferred Revenue Expenditure Capital Expenditure Contingent Liability None 11. Sales returns are recorded in the: Purchases Book Sales Returns Book Cash Book Journal Proper None 12. A bank overdraft is shown in the balance sheet under: Current Liabilities Current Assets Reserves and Surplus Fixed Liabilities None 13. Which of the following is an example of a contingent liability? Bills Payable Debentures Guarantee for a loan Outstanding Rent None 14. Interest on capital is credited to: Capital Account Cash Account Drawings Account Profit and Loss Account None 15. Provision for tax is shown in the balance sheet under: Fixed Liabilities Current Liabilities Current Assets Reserves and Surplus None 16. A credit balance in the Suspense Account indicates: Excess of debits over credits Excess of credits over debits No errors in the trial balance None of the above None 17. Which of the following errors will affect the trial balance? Error of Omission Error of Commission Posting one entry twice Wrong totaling of a subsidiary book None 18. Provision for depreciation appears in the: Profit and Loss Account Balance Sheet as a deduction from assets Trial Balance None of the above None 19. Which concept ensures that personal transactions are kept separate from business transactions? Business Entity Concept Dual Aspect Concept Going Concern Concept Matching Concept None 20. The preparation of financial statements is governed by: Accounting Conventions Accounting Standards Government Regulations All of the above None 21. Which of the following is a contra entry? Payment by cheque Bank deposit of cash Payment to creditors Cash sales None 22. Which of the following does not form part of the trial balance? Closing Stock Cash in Hand Fixed Assets Sundry Creditors None 23. Which of the following errors will not affect the agreement of the trial balance? Omission of a transaction Recording a transaction in the wrong account Recording a transaction twice Compensating errors None 24. A bill drawn and accepted for mutual accommodation is called: Documentary Bill Trade Bill Accommodation Bill Demand Bill None 25. Contingent liabilities are disclosed in the: Balance Sheet Notes to Accounts Trial Balance Profit and Loss Account None 26. Goods taken by the proprietor for personal use are recorded in the: Profit and Loss Account Drawings Account Purchases Account Capital Account None 27. If a company purchases its own shares, it is termed as: Issue of Shares Buyback of Shares Redemption of Shares None of the above None 28. Depreciation is charged on which of the following? Current Assets Fixed Assets Intangible Assets only None of the above None 29. A bank reconciliation statement is prepared to reconcile differences between: Cash Book and Sales Book Cash Book and Bank Passbook Journal and Ledger None of the above None 30. Which accounting standard deals with "Disclosure of Accounting Policies"? AS-1 AS-2 AS-3 AS-10 None 31. The term "provision" in accounting refers to: Expenses to be paid Liabilities of uncertain amount Current Assets Fixed Assets None 32. If a sale is made for ₹10,000 but recorded as ₹1,000, it is an error of: Omission Commission Principle Compensating None 33. Drawings by the proprietor will: Reduce profit Reduce capital Increase liabilities None of the above None 34. Cash withdrawn for personal use is recorded as a: Credit to Cash Account Debit to Drawings Account Credit to Capital Account Debit to Purchases Account None 35. Provision for doubtful debts is shown in the balance sheet as a deduction from: Debtors Cash Loans Sundry Creditors None 36. Repairs to machinery are classified as: Revenue Expenditure Capital Expenditure Deferred Revenue Expenditure None of the above None 37. Patents are classified as: Current Asset Intangible Asset Current Liability Fixed Asset None 38. The purpose of journalizing is to: Post to the ledger Record transactions in chronological order Prepare the trial balance Summarize accounts None 39. Wages paid for installation of machinery should be debited to: Machinery Account Wages Account Repairs Account Capital Account None 40. Trade discount is recorded in the: Aales Book Ledger Journal Proper Not recorded 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. 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!
