Welcome to your International Navodaya Chamber of Commerce (INCOC) Platform ! Subject: Financial 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 recorded in the Cash Book? Cash transactions Bank transactions Credit transactions Contra entries None 2. The dual aspect principle states that: Every transaction affects at least two accounts Debit must always equal credit Transactions should be recorded twice Both a and b None 3. Carriage outward is shown in the: Trading Account Profit and Loss Account Balance Sheet Cash Book None 4. Which of the following is not an asset? Cash Creditors Inventory Plant and Machinery None 5. Accumulated depreciation is shown in the balance sheet as a: Current Liability Current Asset Deduction from the relevant fixed asset Reserve None 6. Which of the following is a current liability? Machinery Bank Overdraft Prepaid Rent Investments None 7. What is the primary objective of providing depreciation? To calculate tax liability To allocate the cost of an asset over its useful life To show the market value of the asset To reduce profits None 8. In which book are credit purchases recorded? Cash Book Purchases Book Sales Book Journal Proper None 9. The term "bookkeeping" refers to: Preparing financial statements Recording financial transactions Preparing tax returns Financial forecasting None 10. Which of the following is a deferred revenue expenditure? Advertising expenses providing long-term benefits Purchase of machinery Payment of salariess Purchase of raw materials None 11. Which of the following is not included in the preparation of a trial balance? Debtors Creditors Closing Stock Cash in Hand None 12. Which of the following accounts is not a personal account? Capital Account Debtors Account Bank Account Salary Account None 13. Goodwill is an example of a: Tangible Asset Current Asset Intangible Asset Current Liability None 14. Which accounting standard deals with "Accounting for Fixed Assets"? AS-1 AS-6 AS-10 AS-3 None 15. A receipt and payment account is prepared by: Sole Proprietors Partnership Firms Non-Profit Organizations Companies None 16. Provision for doubtful debts is created to account for: Bad debts already written off Probable future bad debts Good debts Overstated sales None 17. Prepaid expenses are shown on the balance sheet as: Liability Asset Reserve Revenue None 18. Closing stock is valued at: Cost price Market price Cost or market price, whichever is lower Replacement cost None 19. A trial balance checks the: Accuracy of financial statements Mathematical accuracy of ledger accounts Valuation of inventory Revenue recognition None 20. The profit and loss account records: Capital expenditures Revenue expenditures and revenues Opening stock and purchases All assets and liabilities None 21. Which of the following is an example of capital receipts? Sale of fixed assets Interest income Dividend income Sale of goods None 22. Which type of error occurs when the transaction is recorded in the wrong account of the correct category? Error of Principle Error of Omission Error of Commission Compensating Error None 23. Which book records all adjustments required before the preparation of final accounts? Ledger Journal Proper Cash Book Purchases Book None 24. The term "credit note" is issued when: Goods are purchased Goods are sold Goods are returned Payment is received None 25. Current assets are typically converted into cash within: 6 months 12 months 24 months 36 months None 26. Which of the following is not part of capital expenditure? Installation of machinery Purchase of building Salaries of employees Renovation of office None 27. Depreciation is calculated on: Land Fixed assets except land Current assets Goodwill only None 28. Outstanding expenses are classified as: Contingent Liability Current Liability Fixed Liability Reserve None 29. Bank overdraft is considered as: Current Asset Current Liability Contingent Liability Fixed Liability None 30. Which statement is not true for a ledger? It contains all accounts It is a book of original entry It summarizes journal entries It is the principal book of accounts None 31. Discount allowed is a: Direct expense Indirect expense Direct income Indirect income None 32. The accrual basis of accounting recognizes revenue: When cash is received When earned, regardless of cash receipt When expenses are incurred None of the above None 33. The classification of accounts is based on: Accounting standards Accounting equation Matching concept Dual aspect concept None 34. Capital is equal to: Assets - Liabilities Liabilities + Assets Assets + Revenues Liabilities - Revenues None 35. Purchases Returns are recorded in: Journal Proper Purchases Book Returns Inward Book Returns Outward Book None 36. Which account is debited when interest is paid? Bank Account Cash Account Interest Account Profit and Loss Account None 37. Salaries outstanding at the end of the year are recorded in: Profit and Loss Account and Liability side of Balance Sheet Trading Account Cash Book Asset side of Balance Sheet None 38. Goods sent on approval basis are treated as sales when: Dispatched Payment is received Customer approves the goods Invoice is generated None 39. A bank statement is also known as: Cash Book Pass Book Ledger Trial Balance None 40. Net profit is transferred to: Capital Account Drawings Account Suspense Account Bank 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. 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