Test 201 Welcome to your International Navodaya Chamber of Commerce (INCOC) Platform ! Subject: Business Laws & EthicsTotal Number of Question: 40Time: 41 MinutesPlease check your email after completion of test for result.All the best... Name Phone No Email State 1. A transaction without immediate cash settlement is known as Cash Transaction Credit Transaction Deferred Transaction None of the above None 2. The person in whose favour the bill is endorsed is known as __________. Endorsee Drawee Drawer None of the above None 3. AS-9 is related to Revenue Recognition Cash Flow Statement Accounting for Fixed Assets Disclosure of Accounting policies None 4. The debts which are not bad is known as Good debt Bad Debt Doubtful Debt None of the above None 5. According to AS-15 (Revised) superannuation scheme which has relevance only to the final salary and number of years of service is Defined Benefit Scheme Defined Contribution Scheme Non-Contributory Scheme Both (a) and (b) None 6. Depreciation is a process of Apportionment Valuation Allocation None of the above None 7. Which of the following is/are revenue expenditure? Consumable Stores Taxes and legal expenses Rent of factory building All of Above None 8. Which of the following is not a feature of Trial Balance It is a list of debit and credit balances which are extracted from various ledger accounts It does not prove arithmetical accuracy which can be determined by audit It is not an account. It is only a statement of account All the transactions are primarily recorded in this book, hence it is the primary book of entry None 9. _________ liabilities represent proprietor’s equity, i.e. all thoseamount which are entitled to the proprietor External Debenture Internal None of the above None 10. Any change in the accounting policy relating to inventories which has a material effect in the current or later periods should be disclosed. This is in accordance with the accounting principle of: Going Concer Conservatism Consistency Disclosure None 11. AS-9 is related to Revenue Recognition Cash Flow Statement Accounting for Fixed Assets Disclosure of Accounting policies None 12. Name the book in which, entries are recorded on the basis of debit notes issued. Sales book Purchase Book Sales Return Book ( Purchase Return Book None 13. Goods are transferred from Department X to Department Y at a price so as to include a profit of 33.33% on cost. If the value of closing stock of Department Y is ` 48,000, then the amount of stock reserve on closing stock will be 12,000 9,000 18,000 None of the above None 14. An amount spent in connection with obtaining a License for starting the factory is Revenue Expenditure Capital Expenditure Pre-paid Expenditure None of the above None 15. The concept that business is assumed to exist for an indefinite period and is not established with the objective of closing down is referred to as Money Measurement concept Going Concern concept Full Disclosure concept Dual Aspect concept None 16. Which of the following is a function of journal: Analytical Function Recording Function Historical Function All of the above None 17. The person to whom bill is endorsed is known as __________ Endorsee Drawee Drawer None of the above None 18. Which of the following is/ are the basic features of a Joint Venture . The profit or loss on joint venture is shared between the co-venturers in the agreed ratio The co-venturers may or may not contribute initial capital The JV is dissolved once the purpose of the business is over All of the above None 19. Which of the following is/are feature/features of Income and Expenditure Account? It follows Nominal Accoun All Capital incomes and expenditures are excluded Profit on sale of asset is credited All of the above None 20. Name the principle involved in the classification of Assets as Fixed and Current Cost Principle Going Concern Principle Matching Principle Prudence Principle None 21. Which of the following is a function of journal: Analytical Function Recording Function Historical Function All of the above None 22. If any transaction is not recorded in the primary books the same is recorded in _______ Journal Proper Sales Day Book Cash Book None of the above None 23. As per AS – 1, which of the following is not a Fundamental Accounting Assumptions? Conservatism Going Concern Consistency Accrual None 24. Which of the following cannot be detected by Trial Balance? Errors of Omission Errors of Principal Errors of Misposting All of the above None 25. The following account has a credit balance Plant and Equipment A/c Purchase Returns A/c Purchase A/c None of the above None 26. The out flow of funds to acquire an asset that will benefit the business for more than one accounting period is referred to as — Miscellaneous Expenditure Revenue Expenditure Capital expenditure Deferred Revenue Expenditure None 27. Capital Profit arises from which of the following? Profit prior to incorporation Premium received on issue of shares Profit made on re-issue of forfeited shares All of the above None 28. Bad debts Recovered `1,000. It will be Credited to Bad debts A/c Credited to debtor’s personal A/c Debited to creditor’s personal A/c Credited to bad debts recovered A/c None 29. Del credere commission is allowed to consignee for making cash sales for making credit sales for making extra sales for undertaking risk of bad debts None 30. In the hire purchase system interest charged by vendor is calculated on the basis of Outstanding cash Price Hire purchase Price Installment amount None of the above None 31. Excess of minimum rent over royalty is known as Maximum rent Excess workings Short workings Deficiency of actual royalty None 32. Which of the following purpose is served from the preparation of Trial Balance? To check the arithmetical accuracy of the recorded transactions To ascertain the balance of any ledger account To facilitate the preparation of final accounts promptly All of the above None 33. The cost of a Fixed Assets of a business has to be written off over its Natural Life Accounting Life Physical Life Estimated Economic Life None 34. If a fixed amount is withdrawn on the first day of every month of calendar year by a partner in partnership firm, then for what period the interest on the total amount of drawings will be calculated? 4.5 months 5.5 months 6.5 months 7.5 months None 35. The basic principles of ____ concept is that business is assumed to exist for an indefinite period Going Concern Business Entity Money Measurement None of the above None 36. When Sales = `3,60,000, Purchase = ` 3,20,000, Opening Stock = `68,000 and rate of the Gross Profit is 20% on cost, the Closing Stock would be 1,00,000 44,000 46,000 None of the above None 37. Goods are transferred from Department A to Department B at a price so as to include a profit of 33.33% on cost. If the value of closing stock of Department Y is `36,000, then the amount of stock reserve on closing stock will be 12,000 9,000 18,000 None of the above None 38. _________ contains the transactions relating to goods that are returned by us to our creditors Return Inward Return Outward Sales Daybook None of the above None 39. Receipts and Payments Account records Only revenue nature receipts Only capital nature receipts and payment Only revenue nature receipts and payments Both the revenue and capital nature receipts and payments None 40. Bad debts Recovered `750. It will be Credited to Bad debts A/c Credited to debtor‘s personal A/c Debited to creditor‘s personal A/c Credited to bad debts recovered A/c 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 !! Time's upTime is Up!
