Test 252 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. What is the usual term for a bill of exchange? 30 days 60 days 90 days Any agreed period None 2. Who is the drawer in a bill of exchange? The person who pays the bill The person who writes the bill The person to whom the bill is payable The bank None 3. When a bill of exchange is accepted, it becomes: A promissory note A payable instrument An accepted bill A negotiable instrument None 4. The drawer of a bill of exchange is also known as the: Debtor Creditor Payee Drawee None 5. What is the purpose of discounting a bill of exchange? To extend the due date To get immediate cash To avoid payment To secure additional credit None 6. In a bill of exchange, the term "endorsement" refers to: Payment acceptance Transfer of rights Dishonor of bill Drawer's agreement None 7. The person who accepts a bill of exchange is called: Payee Drawee Drawer Discount holder None 8. If the drawee does not pay the bill on the due date, the bill is considered: Endorsed Honored Dishonored Discounted None 9. In a bill of exchange, when interest is charged for an extension of the due date, it is termed Discount Rebate Noting charges Renewal charges None 10. The interest for the period of a bill of exchange is generally charged by: Drawer Drawee Notary public Holder None 11. Who is a consignee in a consignment transaction? Seller Buyer Agent Owner None 12. The goods sent by the consignor are recorded in the books of the consignee as Purchases Sales Consignment stock Goods in transit None 13. Commission earned by a consignee for guaranteeing credit sales is called: Overriding commission Ordinary commission Del credere commission Fixed commission None 14. Which of the following is not a feature of consignment? Ownership remains with the consignor Consignee earns a commission It’s a contract of sale Consignee acts as an agent None 15. Goods sent on consignment are treated as: Purchases by the consignee Sales by the consignee Goods belonging to the consignor Consignee's assets None 16. Which account is prepared by the consignor to calculate profit or loss on consignment? Trading account Profit and loss account Consignment account Commission account None 17. The unsold goods in the hands of the consignee are valued at Invoice price Market price Cost price Net realizable value None 18. Which account represents expenses paid by the consignee for consigned goods? Cash account Consignment account Consignee’s personal account Sales account None 19. If the consignee bears risk on credit sales, they are entitled to Extra salary Del credere commission Guarantee commission No additional commission None 20. The term "proforma invoice" in consignment refers to: Consignment note Draft invoice Invoice prepared for consignee Invoice prepared by consignee None 21. A joint venture is similar to: Partnership Sole proprietorship Limited liability company Corporate partnership None 22. In a joint venture, the co-venturers are entitled to: Fixed interest Profit-sharing based on agreement Commission Bonus None 23. The joint venture agreement typically terminates: After one year Upon the completion of a project After profit distribution By mutual consent None 24. In a joint venture, unsold goods at the end of the venture are valued at Selling price Market price Cost price or NRV, whichever is lower Retail price None 25. Which of the following accounts is opened to close a joint venture? Bank account Joint venture account Capital account Profit and loss account None 26. Joint venture differs from consignment because: It involves sharing of profit and loss Ownership remains with one party Only one party bears risk It has no fixed duration None 27. Which of the following expenses are shared among co-venturers? Common expenses only Personal expenses only Both common and specific expenses None None 28. The profit or loss on joint venture is transferred to the: Profit and loss account Joint venture account Personal accounts of co-venturers Common expense account None 29. When one co-venturer maintains accounts, it’s termed as: Memo method Joint bank account method Single-venture method Co-venturer method None 30. Joint venture capital contribution by co-venturers is recorded in: Co-venturer’s personal account Joint bank account Profit and loss account Capital account None 31. When a bill is retired before its due date, the drawer usually allows the drawee a: Discount Premium Fine Extra interest None 32. Noting charges are paid when a bill is: Honored Dishonored Endorsed Renewed None 33. If a bill of exchange is dishonored, the amount due is credited to the: Bills Receivable Account Bills Payable Account Drawer’s Account Drawee’s Account None 34. The term "usance" in relation to bills of exchange refers to: The drawer’s location The duration or period before payment is due The drawee's responsibility The discount allowed None 35. The expenses incurred by the consignor to bring the goods to the consignee’s location are called: Selling expenses Non-recurring expenses Recurring expenses Commission expenses None 36. Abnormal loss in consignment is generally transferred to the: Consignment Account Consignor's Capital Account Profit and Loss Account Consignee’s Account None 37. If the consignee bears all risk of credit sales, it is recorded in the books as: Normal Commission Special Commission Del Credere Commission Extra Sale Commission None 38. The account that shows the transactions between co-venturers in a joint venture is called: Joint Venture Account Co-venturers’ Personal Account Profit and Loss Account Consignment Account None 39. In joint venture accounting, if there is a balance remaining in the Joint Venture Account, it is transferred to The bank account - (B) - (C) - (D) P The personal accounts of the co-venturers The trading account Profit and Loss Account None 40. In case of a joint venture, if one co-venturer is maintaining all records, the profit-sharing ratio is used to: Distribute common expenses Share the joint venture profits Determine ownership percentage Define liability limits 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 !! 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