Test 255 Welcome to your International Navodaya Chamber of Commerce (INCOC) Platform ! Subject: Financial 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. Income received in advance is shown in the balance sheet as a: Current Asset Current Liability Contingent Liability Reserve None 2. Which account is debited when goods are purchased for cash? Cash Account Purchases Account Sales Account Capital Account None 3. Accrued income is classified as a: Current Asset Current Liability Fixed Asset Revenue Expenditure None 4. he matching concept ensures that: Expenses are matched with revenues Assets are matched with liabilities Revenues are matched with expenses Both a and c None 5. The principal book of accounts is the: Journal Cash Book Ledger Trial Balance None 6. Which of the following is not a type of depreciation method? Straight-Line Method Reducing Balance Method Sum of the Years’ Digits Method FIFO Method None 7. The financial year in India usually starts from: January 1 April 1 July 1 October 1 None 8. When preparing a trial balance, which of the following errors is detected? Omission Compensating Arithmetic mistake Principle None 9. Goods withdrawn for personal use are recorded at: Cost price 1 Market price Selling price CReplacement cost None 10. Which account is debited when interest is earned but not yet received? Interest Earned Account Interest Received Account Accrued Interest Account Profit and Loss Account None 11. he full form of GAAP is: 1Generally Accepted Accounting Principles General Accounts and Practices General Accepted Assets and Practices Generally Accredited Accounting Procedures None 12. Trade receivables include: Creditors Debtors and Bills Receivable Debtors only Bills Receivable only None 13. Cash discount is recorded in the: Profit and Loss Account Balance Sheet Cash Book Journal Proper None 14. The amount payable by a firm to its suppliers is classified as: Bills Payable Bills Receivable Trade Receivables Trade Payables None 15. Which of the following is not a non-cash expense? Depreciation Bad Debts Discount Allowed Payment of Rent None 16. Which of the following represents a cash inflow in the cash flow statement? Purchase of machinery Issue of shares Payment of dividend Repayment of loan None 17. The principle of prudence requires that: Income is recognized when earned Expenses are recognized when paid Anticipate no profits but provide for all probable losses All items must be recorded at historical cost None 18. Which document is prepared to rectify errors in the trial balance? Journal Suspense Account Ledger Bank Reconciliation Statement None 19. A bill of exchange payable after sight is called a: Demand Bill Term Bill Accommodation Bill Usance Bill None 20. Which is not a feature of financial accounting? Recording of transactions Helps in managerial decision-making Historical in nature Summarizes financial data None 21. Cash paid to creditors is recorded in: Purchases Book Cash Book Sales Book Journal Proper None 22. The accounting period concept is related to: Matching revenues with expenses Recording all liabilities Dividing the business into equal periods for reporting None of the above None 23. Bills receivable endorsed to a creditor is: Shown as an asset Shown as a liability Not recorded None of the above None 24. Depreciation is a: Cash Expense Non-Cash Expense Capital Expenditure None of the above None 25. Which of the following is an example of a capital expenditure? Repairs of machinery Replacement of old furniture Purchase of new machinery Advertisement None 26. A debit balance in the profit and loss account indicates: Net Profit Net Loss Capital Increase None of the above None 27. A contingent liability will be recorded when: It is probable and measurable It is probable and measurable It is remote It is neither measurable nor probable None 28. Which financial statement summarizes cash receipts and cash payments? Balance Sheet Income Statement Fund Flow Statement Cash Flow Statement None 29. The primary purpose of a journal is to: Record original transactions Prepare ledger accounts Draft financial statements None of the above None 30. Discount received is a: Direct Income Direct Expense Indirect Income Indirect Expense None 31. Opening stock is shown in: Profit and Loss Account Trading Account Balance Sheet Cash Book None 32. Trial balance ensures: Mathematical accuracy of accounts Accuracy of all transactions No errors in financial statements None of the above None 33. In accounting, "journal" is also known as: Book of Accounts Book of Original Entry Book of Records Book of Final Entry None 34. Adjustments for outstanding expenses are made in the: Trading Account only Profit and Loss Account only Profit and Loss Account and Balance Sheet Cash Book None 35. Which account is credited when rent is paid? Rent Account Profit and Loss Account Cash Account Bank Account None 36. The accrual concept is related to: Cash basis of accounting Revenue recognition Realization of fixed assets Inventory valuation None 37. Which statement summarizes the financial position of a company? Cash Flow Statement Balance Sheet Profit and Loss Statement Trading Account None 38. If a transaction is completely omitted from the books of accounts, it is known as: Error of Omission Error of Commission Error of Principle Compensating Error None 39. Which concept assumes that the business will continue to operate in the foreseeable future? Accrual Concept Going Concern Concept Matching Concept Consistency Concept None 40. The balancing figure in the trial balance is posted to the: Suspense Account Profit and Loss Account Ledger Account Cash Book 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!
