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 an objective of accounting? To provide information to stakeholders To maintain records of assets To ascertain liabilities To measure employee performance None 2. Which of the following accounts is classified as a personal account? Machinery Account Debtor Account Rent Account Sales Account None 3. The amount spent on acquiring goodwill is considered as a: Revenue expenditure Deferred revenue expenditure Capital expenditure Operating expense None 4. What is the primary feature of a partnership? Limited liability Separate legal entity Profit-sharing agreement No written agreement None 5. Which of the following items is NOT considered a current asset? Cash Debtors Stock Furniture None 6. The process of recording transactions in a journal is called: Posting Journalizing Ledger balancing Trial balancing None 7. Closing stock is shown in the: Profit & Loss Account Trading Account (credit side) Trading Account (debit side) Balance Sheet (asset side) None 8. Carriage outward is shown in the: Trading Account Profit & Loss Account (debit side) Profit & Loss Account (credit side) Balance Sheet None 9. Which of the following is NOT part of the books of accounts? Cash Book Journal Ledger Invoice None 10. Which accounting principle requires the disclosure of all relevant information? Conservatism Matching Full Disclosure Accrual None 11. Bad debts recovered are credited to which account? Debtors Account Profit & Loss Account Bad Debts Account Cash Account None 12. Which of the following is a non-current liability? Accounts Payable Loans payable after 5 years Outstanding Rent Bank Overdraft None 13. Drawings result in a decrease in: Liabilities Capital Revenue Expenses None 14. Which of the following is NOT a direct expense? Carriage Inward Wages Power and Fuel Office Salaries None 15. Accrued income is shown on the: Debit side of the Profit & Loss Account Credit side of the Profit & Loss Account Asset side of the Balance Sheet Liability side of the Balance Sheet None 16. The trial balance will tally if there is: An error of omission An error of commission A compensating error An error of principle None 17. Under GST, a debit note is issued when: The tax charged in the invoice is less than the actual tax liability The goods supplied are defective The payment is delayed None of the above None 18. Trade receivables include: Creditors Debtors and Bills Receivable Debtors only Bills Receivable only None 19. Depreciation is calculated on the: Cost of the asset Market value of the asset Residual value of the asset Replacement cost of the asset None 20. The sale of an asset is credited to the: Sales Account Asset Account Profit & Loss Account Disposal of Asset Account None 21. In the absence of a partnership deed, interest on capital is allowed at: 6% per annum 8% per annum 10% per annum No interest is allowed None 22. Bank charges are recorded on the: Debit side of the Cash Book Credit side of the Cash Debit side of the Bank Account Credit side of the Trial Balance None 23. Net profit is transferred to: Profit & Loss Account Capital Account Drawings Account Current Account None 24. The rectification of errors is done through the: Profit & Loss Account Trading Account Suspense Account Bank Account None 25. Interest on capital is shown in the Profit & Loss Account: As an expense As an income As a liability As a reserve None 26. Pre-incorporation expenses are classified as: Current Asset Fixed Asset Fictitious Asset Liability None 27. In the cash flow statement, dividends paid are classified under: Operating Activities Investing Activities Financing Activities Both Operating and Financing Activities None 28. Which of the following accounts is debited for salary paid in cash? Salary Account Cash Account Profit & Loss Account Capital Account None 29. Which of the following is NOT a contingent liability? Guarantee given to others Claims against the company Provident fund liability Bills discounted but not yet matured None 30. Accrued rent is classified as: Asset Liability Revenue Expense None 31. The accounting standard dealing with revenue recognition is: AS 7 AS 9 AS 10 AS 2 None 32. Which account is debited when a loan is repaid? Loan Account Cash Account Capital Account Interest Account None 33. A suspense account is opened to: Record petty cash expenses Record unclear entries temporarily Reconcile bank accounts Record all income None 34. In case of an incomplete contract, revenue is recognized based on: AS 2 AS 7 AS 3 AS 10 None 35. Which of the following is NOT a depreciation method? Straight-Line Method Written Down Value Method Units of Production Method Gross Value Method None 36. Preliminary expenses are shown on the: Asset side of the Balance Sheet Liability side of the Balance Sheet Debit side of the Profit & Loss Account Credit side of the Profit & Loss Account None 37. Which of the following accounts is NOT a part of the trial balance? Cash Account Discount Allowed Account Opening Stock Account Closing Stock Account None 38. Which account is debited for cash received from a debtor? Cash Account Debtor Account Profit & Loss Account Capital Account None 39. Provision for bad debts is: A liability An asset A reserve A charge against profits None 40. Outstanding wages are shown on the: Trading Account (debit side) Trading Account (credit side) Balance Sheet (liability side) Balance Sheet (asset side) 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!
