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. The purchase of goods on credit is recorded in the: Cash Book Purchase Day Book Ledger Bank Statement None 2. Which of the following is an indirect expense? Wages Carriage Inward None 3. Goods sent on consignment are recorded as: Purchases Sales Consignment Account Commission Account None 4. Which is NOT a cash inflow? Sale of assets Issue of shares Payment of dividends Increase in loans None 5. What is recorded in the profit and loss appropriation account? Indirect expenses Gross profit Partners' salary and interest Preliminary expenses None 6. Discount allowed is shown in the: Trading Account Profit & Loss Account(debit side) Profit & Loss Account (credit side) Balance Sheet None 7. 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 8. Opening stock is recorded in: Profit & Loss Account Trading Account (debit side) Balance Sheet Trading Account (credit side) None 9. Which account is credited when goods are returned to suppliers? Returns Outward Account Returns Inward Account Purchase Account Supplier Account None 10. Which of the following is a fictitious asset? Preliminary Expenses Cash Inventory Fixed Assets None 11. Which of the following expenses is NOT included in the cost of goods sold? Raw Material Cost Carriage Inward Office Salaries Direct Labour Cost None 12. Which account is credited when goods are sold for cash? Cash Account Purchases Account Sales Account Bank Account None 13. Revenue is recognized as per: Cost Concept Revenue Recognition Concept Consistency Concept Matching Concept None 14. Opening balance of capital is adjusted for: Closing Stock Drawings and Profit/Loss Depreciation Prepaid Expenses None 15. Depreciation is NOT charged on: Land Plant Machinery Building None 16. The accounting standard related to accounting for investments is: AS 13 AS 2 AS 9 AS 10 None 17. Which of the following accounts is debited for a cheque deposited into the bank? Bank Account Cash Account Creditor Account Capital Account None 18. In a cash book, bank overdraft is shown as a: Debit Balance Credit Balance Both A and B None of the above None 19. The financial statements do NOT include: Trading Account Bank Reconciliation Statement Profit & Loss Account Balance Sheet None 20. An example of fictitious assets is: Trade Receivables Patents Preliminary Expenses Furniture None 21. Goodwill is shown on the: Debit side of the Profit & Loss Account Liability side of the Balance Sheet Asset side of the Balance Sheet Credit side of the Profit & Loss Account None 22. In case of bad debts, which account is credited? Profit & Loss Account Debtors Account Bad Debts Account Suspense Account None 23. Closing stock appears in: Trial Balance only Trading Account and Balance Sheet Profit & Loss Account only Trading Account only None 24. Which of the following is a real account? Interest Account Furniture Account Salary Account Rent Account None 25. Which account is debited when goods are sold on credit? Purchases Account Sales Account Debtors Account Cash Account None 26. Bills Payable is classified under: Fixed Assets Current Liabilities Current Assets Investments None 27. When a cheque is dishonored, which account is debited? Debtor’s Account Cash Account Bank Account Creditor’s Account None 28. Outstanding expenses are recorded on the: Debit side of the Profit & Loss Account Credit side of the Profit & Loss Account Liability side of the Balance Sheet Asset side of the Balance Sheet None 29. The accounting standard related to leases is: AS 18 AS 19 AS 20 AS 22 None 30. A ledger is also known as a: Journal Principal Book of Accounts Subsidiary Book Cash Book None 31. Which account is credited when rent is received? Rent Account Cash Account Profit & Loss Account Capital Account None 32. Which of the following is NOT a deferred revenue expenditure? Heavy advertisement expenses Preliminary expenses Rent paid in advance Expenses on the introduction of a new product None 33. Capital Reserve is created from: Revenue Profit Capital Profit Current Liabilities Current Assets None 34. The accounting standard for segment reporting is: AS 15 AS 17 AS 18 AS 19 None 35. Purchase Returns are recorded in the: Purchases Book Sales Return Book Purchase Return Book Journal Proper None 36. The balance of the suspense account is transferred to: Profit & Loss Account Trading Account Bank Account None of the above None 37. Revenue expenditure is shown in the: Trading and Profit & Loss Account Profit & Loss Appropriation Account Balance Sheet None of the above None 38. Interest on a loan is classified as: Capital Expenditure Revenue Expenditure Deferred Revenue Expenditure Contingent Expenditure None 39. Accrued income is recorded as a: Current Liability Current Asset Fixed Asset Contingent Asset None 40. Which account is debited for wages paid for construction of a building? Wages Account Building Account Profit & Loss Account Construction 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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