Test 2 Welcome to your International Navodaya Chamber of Commerce (INCOC) Platform ! Subject: Basic Concept of 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. The determination of expenses for an accounting period is based on the concept of Consistency concept Periodicity concept Timeliness concept Industry practice None 2. Decrease in the amount of creditors results in Increase in assets Increase in cash Decrease in cash No change in assets None 3. Which of the following is an accounting equation? Capital = Assets + Liabilities Capital = Assets - Liabilities Assets = Liabilities - Capital Liabilities = Assets + Capital None 4. Prepaid insurance premium account is Tangible assets account Liability account Nominal account Representative personal account None 5. A determination of expenses for an accounting period is based on the principle of Objectivity Morality Matching Pricing None 6. Long term assets without any physical existence but, having a value are known as: Investments Current assets Intangible asset Fixed assets None 7. Provision for bad debt is made as per the Entity concept Conservatism Concept Cost Concept Going Concern Concept None 8. Income tax of the sole trader paid is Debited to P & L Account Debited to Trading Account None Debited to his Capital Account None 9. Narration are given of the end of Final accounts Trial balance each ledger account Each journal entry Each ledger accounts None 10. Which of the following is an example of Personal Account? Machinery Creditor Cash Rent None 11. Festival advance of ₹ 25,000 was given to employees at the time of Deepawali. It is a Revenue Expenditure Capital Expenditure Deferred Revenue Expenditure Not an Expense None 12. 8,000 is spent of traveling expenses of the partner to a foreign trip for purchased of an asset to be used for the business is a/an — Capital Expenditure Revenue Expenditure Revenue Loss Capital Loss None 13. The expenditure ₹ 2,000 incurred on a trial run of newly purchased machine is. Preliminary expenses Capital expenditure Revenue expenditure Deferred revenue expenditure None 14. ₹ 8,000 is spent on travelling expenses of the partner to a foreign trip for purchase of an asset to be used for the business is a/an: Capital Expenditure Revenue Expenditure Revenue Loss Capital Loss None 15. If repair cost is ₹ 20,000, white wash expenses are ₹ 10,000, cost of extension of building is ₹ 3,50,000 and cost of improvement in Electrical wiring system is T 19,000 the amount to be expensed i.e.: ₹ 3,99,000 ₹ 39,000 ₹ 30,000 ₹ 49,000 None 16. Money spent ₹ 20,000 as traveling expenses of the directors on trips abroad for purchase of Capital assets is: Capital expenditure Revenue expenditures Deferred revenue expenditures None of the above None 17. Which of the following is not a revenue expenditure? Petrol consumed in motor vehicles Cost of saleable goods Bad debts Premium given on lease None 18. Capital expenses are show in Balance sheet Profit and loss A/c Trading A/c None of these None 19. Life membership fees received by a club is a Revenue Expenditure Capital Expenditure Deferred Revenue Expenditure Capital Receipt None 20. Import duty of raw material purchased is a Revenge Expenditure Capital Expenditure Deferred Revenue Expenditure None of the above None 21. A bad debt recovered during the year will be Capital Expenditure Revenue Expenditure Capital Receipt Revenue Receipt None 22. House Building Advance of ₹ 2.00 lakh paid to employees. It is a Asset Revenue Expenditure Capital Expenditure Deferred Revenue Expenditure None 23. An expenditure is in capital nature when the receiver of the amount is going to treat it for the purchase of fixed assets it increase the quantity of fixed assets it is paid as interests on loans for the business it maintains a fixed assets None 24. ₹ 5,000 incurred for up gradation of computer by installation of 128 MB Ram is Revenue expenditure Deferred revenue expenditure Capital expenditure None of the above None 25. Cost of goods purchased for resale is an example of Revenue expenditure Capital expenditure Deferred revenue expenditure None of the above None 26. Insurance claim received on account of machinery damaged completely by fire is Capital receipt Revenue receipt Capital expenditure Revenue expenditure None 27. An expenditure is capital in nature when , The receiver of the amount is going to treat it for the purchase of fixed assets It increases the quantity of fixed assets It is paid as interest on loans for the business It maintains of fixed asset None 28. Which one is not considered as capital expenditure? Depreciation Architect’s fees Demolition cost Legal cost for buying property None 29. Legal charges paid to defend a suit on firm’s factory site is Capital expenditure Revenue expenditure Deferred revenue expenditure Prepaid expenditure None 30. Any revenue expense for which a separate fund is available will be capitalised and shown in the balance sheet debited to income and expenditure account debited to the separate fund None of the above None 31. Which of the following is capital expenditure? Repairs of fixed asset Demolition cost Locker rent Annual subscription None 32. Advertising expenses for launching a new product of the company is ______ . Revenue expenditure Capital expenditure Deferred revenue expenditure Deferred capital expenditure None 33. Capital expenditures are shown in the Balance Sheet Profit & Loss A/c Trading A/c Manufacturing A/c None 34. Import duty of raw materials purchased is a Revenue Expenditure (b) (c) (d) Capital Expenditure Deferred Revenue Expenditure None of the above None 35. Which of the following item is shown in the Receipt and Payment account? Only items of capital nature Only items of revenue nature which are received during the period of accounts Only items of revenue nature pertaining to the period of accounts Both the items of capital and revenue nature which are received None 36. Capital expenditures are recorded in the Balance sheet Profit and loss A/c Trading A/c Manufacturing A/c None 37. Life membership fees received by a club Revenue expenditure Capital expenditure Deferred revenue expenditure Capital receipt None 38. Received from Soloman & co., an invoice for ₹ 1500 for repairs to factory walls Revenue expenditure (b) (c) (d) Capital expenditure Deferred revenue expenditure None of these None 39. A bad debt recovered during the year will be Capital expenditure Revenue expenditure Capital Receipt Revenue Receipt None 40. The convention that states that the accounting practice should be followed consistently over the years Consistency Conservation Materiality Disclosure 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!
