Test 251 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 Accommodation bill is drawn to finance actual purchase or sale of goods to facilitate trade transmission when both parties are in need of funds None of the above None 2. As on 31st March, 2017 debtors and additional bad debts are ` 8,00,000 and ` 10,000 respectively. If the provision for bad debts is made at 5% on debtors then amount of such provision will be P-5: Financial Accounting - Bit Questions The Institute of Cost Accountants of India 3 40,000 50,000 39,500 40,500 None 3. If an employee of the business files a legal suit on business, it is considered in the books as Legal Expense Liability Contingent Asset Contingent Liability None 4. Balance of X's account in creditors ledger is transferred to X's account in debtors ledger, in this case X's account in debtors ledger will be debited X's account in creditors ledger will be debited None of the above None 5. Income and Expenditure Account is a Nominal Account Real Account Personal Account Artificial Personal Account None 6. At the end of the accounting year the capital expenditures are shown in the assets side of the Balance Sheet liabilities side of the Balance Sheet debit side of the Profit and Loss A/c credit side of the Profit and Loss A/c None 7. If average inventory is `1,25,000 and closing inventory is `10,000 less than opening inventory then the value of closing inventory will be 1,35,000 1,15,000 1,30,000 1,20,000 None 8. Receipts and Payments account is a Nominal Account Real Account Personal Account Artificial Personal Account None 9. Which of the following is not a method of charging depreciation? Sinking Fund Method Sum of years Working hours Method Asset's Life-cycle Method None 10. Which of the following is an example of Capital Expenditure? Inventory of raw materials, work-in-progress and finished goods; ( Insurance premium Taxes and legal expenses None of the above None 11.Ground rent or surface rent means Minimum rent Maximum royalty payable Minimum royalty payable Fixed rent payable in addition to minimum rent None 12. Outward Invoice issued is a source document of Purchase Book Sales Book Return Inward Book Return Outward Book None 13. Accounting standard in India are issued by Government of India Reserve Bank of India The Institute of Chartered Accountants of India The Institute of Accounting Standard of India None 14. _______ is equal to estimated selling price less the estimated costs of completion and the estimated costs necessary to make the sale. Net Realizable value Cost of Purchase None of the above None 15. An obligation which may or may not materialize is a/an _______________ Loss Asset Contingent Liability None of the above None 16. Creditors ledger adjustment account is opened in General Ledge Debtors Ledger Creditors Ledger Either (b) or (c) None 17. Which of the following errors is not disclosed by a Trial Balance? Errors of Omission Errors of Commission Compensating Errors All of the above None 18. ________________ voucher denotes payment of cash Cash Payment Cash Receipt Bank Payment All of the above None 19. A resource owned by the business with purpose of using it for generating future profit, is known as Capital Asset Liability Surplus None 20. _______ are investments which are held beyond the current period as to sale or disposal. Non-current Investments Current Investments Current Liabilities None of the above None 21. ___________ is specially suited to mines, oil wells, quarries, sandpits and similar assets of a wasting character. Depletion Depreciation Amortisation Dilapidation None 22. From the following details estimate the capital as on 31.03.2017. Capital as on 01.04.2016 - `4,10,000. Drawings `40,000, Profit during the year ` 50,000 4,10,000 `4,50,000 `4,20,000 4,00,000 None 23. Which of the following is of capital nature? Commission on purchases Cost of repairs Rent of factory Wages paid for installation of machinery None 24. AB Ltd. has signed at 31st December, 2017 the Balance Sheet date, a contract where the Total Revenue is estimated at ` 15 Crores and Total Cost is estimated at ` 20 Crores. No work began on the contract. Is the Contractor required to give any accounting effect for the year ended 31st December, 2017? Recognize expected loss of `5 Crores Recognize `15 Crores as Profit No entry None of the above None 25. Income statement of a Charitable Institution is known as Statement of profit and loss Receipts and Payments Account Income and Expenditure Account Profit and Loss Account None 26. 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 27. If any stock is taken by a co-venturer, it will be treated as an income of the joint venture an expense of the joint venture to be ignored from joint venture it will be treated in the personal books of the co-venturer None 28. A and B purchased a piece of land for ` 30,000 and sold it for `60,000 in 2016. Originally A had contributed `12,000 and B `8,000. The profit on venture will be 30,000 20,000 60,000 Nil None 29. Which one is/ are the method/s of Accounting for Branches (a) Final Accounts Method; (b) Debtors Method and (c) Stock and Debtors Method. (d) All of the above Final Accounts Method Debtors Method Stock and Debtors Method. All of the above None 30. Contingent liability would appear (a) on the liability side of the Balance Sheet. (b) on the assets side of the Balance Sheet. (c) do not shown in the books of accounts. (d) as a note in Balance Sheet. on the liability side of the Balance Sheet on the assets side of the Balance Sheet do not shown in the books of accounts as a note in Balance Sheet None 31. Bad debts are apportioned among departments in the proportion of Sales of each department Number of units sold by each department Cost of sales of each department None of the above None 32. Which of the following item does not match with receipts and payments account? It is a summarized cash book Transactions are recorded in it on cash basis It records revenue transactions only It serves the purpose of a real account None 33. Which of the following account is mainly prepared at the time of dissolution of the firm Revaluation A/c Goodwill A/c Realization A/c Memorandum Revaluation A/c None 34. __________ is similar to the Profit and loss A/c Income and Expenditure A/c Receipts and Payments A/c Balance Sheet None of the Above None 35. Which of the following is not a Fundamental Accounting Assumption? Going Concern Consistency Accrual Materiality None 36. Excess of hire purchase price over cash price is known as (a) Installment (b) Cash down payment (c) Interest (d) Capital value of asset Installment Cash down payment Interest Capital value of asset None 37. In Hire Purchase system cash price plus interest is known as Capital value of asset Book value of asset Hire purchase price of asset Hire purchase charges None 38. The following account has a credit balance Plant and Equipment A/c Loans A/c Purchase A/c None of the above None 39. Kuntal draws a bill on shyam for ` 7,000.Kuntal endorsed it to Ram. Ram endorsed it to Rahim. The payee of the bill will be: Kuntal Ram Shyam Rahim None 40. Advertisement expenses are apportioned among departments in the proportion of sales of each department purchases of each department no. of units sold by each department cost of sales of each department 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!
