Test 301 Welcome to your International Navodaya Chamber of Commerce (INCOC) Platform ! Subject: Direct and Indirect Taxation Total Number of Question: 40Time: 41 MinutesPlease check your email after completion of test for result.All the best... Name Phone No Email State 1. Expenditures in respect of certain types of assets whose usefulness does not expires in the year of their occurrence but generally expires in the near future are called Revenue Expenditure Capital Expenditure Deferred Revenue Expenditure None of the above None 2. Actuarial valuation relates to: Banking company Electric Supply Company Insurance Company None of the above None 3. Name the book in which, entries are recorded on the basis of credit notes issued. Sales Book Purchase Book Sales Return Book Purchase Return Book None 4. Which of the following incomes is not taxable? Bonus received from employer Agricultural income Income from lottery Rent from house property None 5. Contingent Liability would appear a) on the liabilities side of the Balance Sheet on the assets side of the Balance Sheet. as a note in the Balance Sheet None of the above None 6. The main objective of average clause contained in a fire insurance policy is to Encourage full Insurance Discourage full Insurance Encourage under Insurance Encourage full Insurance and Discourage under Insurance None 7. Canteen expenses are apportioned among departments in the proportion of Departmental floor space Departmental direct wages Departmental sales Departmental No. of employees None 8. Provision for bad and doubtful debts is created in anticipation of actual bad debts on the basis of: Business Entity Concept Conservatism Concept Accrual Concept Full Disclosure Concept None 9. Debtors Ledger Adjustment Account is opened in the Debtors Ledger Creditors Ledger General Ledger Both Creditors Ledger and General Ledger None 10. . Exception to consistency principle is Cost Principle Going Concern Principle Matching Principle Prudence Principle None 11. Short working can be recouped out of Minimum Rent Excess of Actual Royalty over Minimum Rent Excess of Minimum Rent over Actual Royalty Profit and Loss Account None 12. Which of the following term is most suitable for writing off Patent? Depletion Amortization Depreciation All of the above None 13. 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 Expenditur Deferred Revenue Expenditure None 14. . Which of the following is not a Qualitative characteristicof Financial Statement? Cost Principle Understandability Relevance Reliability None 15. Both cash and credit transactions are recorded, on the basis of Accounting Period Concept Going Concern Concept Business Entity Concept Accrual Concept None 16. AS-6 (revised) is applicable to which one of the following assets? Goodwill (b) Live stock Live stock Plantation Plant and Machinery None 17. Goods are sent to the Branch at cost plus 25%. The loading on invoice price is: 20% 25% 30 % None of the above None 18. . Generally sacrifice ratio is concerned with the situation of (a) Admission of a new partner Retirement of a partner Dissolution of firm Conversion of firm into company None 19. Purchase of a laptop for office use wrongly debited to Purchase Account. It is an error of Omission Commission Principle Misposting None 20. Which of the following book is both a journal and a ledger? Cash Book Sales Day Book Bills Receivable Book Journal Proper None 21. According to AS-3 (Revised) interest and dividends received in the case of a manufacturing enterprise should be classified as cash flow from Operating Activities Financing Activities Investing Activities Both (b) and (c) None 22. A non-performing asset is: Money at call and short notice Cash balance with bank An asset that ceases to generate income None of the above None 23. Discount given in the Sales - Invoice itself is Cash discount Trade discount Rebate Allowance None 24. Chandu & Co.'s Account is a Real Account Nominal Account Representative Personal Account Artificial Personal Accounts None 25. The balance in consignment account shows Amount receivable from consignee Amount payable to consignee Profit/ loss on consignment Closing stock with consignee None 26. KCS purchased a machine from JPS on hire purchase system, whose cash price was `8,64,000. ` 2,16,000 being paid on delivery and balance in three annual instalments of `2,88,000 each. The amount of interest included in first installment would be 72,000 57,600 1,08,000 36,000 None 27. Survey expenses for marine insurance claim must be Added to claim Added to legal charges Added to administrative charges None of the above None 28. Interest received in advance account is a Nominal Account Real Account Artificial Personal Account Representative Personal Account None 29. At the end of the year 2017-18, Prepaid Insurance Premium `7,500 appeared in the Trial Balance, it will be shown only in Profit & Loss Account only in Balance Sheet. both in Profit & Loss Account and in Balance Sheet. not in Both in Profit & Loss Account and in Balance Sheet None 30. . A profit on sale of furniture of a club will be taken to Cash Account Receipts and Payment Account Income and Expenditure Account Profit and Loss Account None 31. Provision for bad debts is Real Account Nominal account Personal account None of the above None 32. . Shiva draws a bill on Sanat on 25th October, 2018 for 90 days, the maturity date of the bill will be 27th January, 2019 26th January, 2019 25th January, 2019 28th January, 2019 None 33. Realisation Account is a: Representative Personal Account Artificial Personal Account Real Account Nominal Account None 34. Due to retrospective effect on revision of salary of employees, the arrears of salary relating to past years, payable in current year is Prior - period item Extra - ordinary item Ordinary item requiring separate disclosure Contingent item None 35. Which of the following is a resource owned by the business with the purpose of using it for generating future profits? Loan from Bank Owner's Capital Trade Mark All of the above None 36. Bank shows the provision for income tax under the head Contingency Accounts Other liabilities and provisions Contingent liabilities Borrowings None 37. . Income & Expenditure A/c shows subscriptions `10,000; Subscriptions accrued in the beginning of the year and at the end of the year were `1,000 and `1,500 respectively. The figure of subscription received appear in receipts and payments account will be: 9,500 10,000 10,500 12,000 None 38. Peeru and Simu entered in the business of buy and sale of food grain for a period of one year and sharing the profit in the ratio of 3:2, this agreement is a Partnership Consignment Joint-venture Lease None 39. The business is treated as distinct and separate from its owners on the basis of the Going concern concept Conservatism concept Matching concept Business entity concept None 40. Bank Reconciliation Statement is: Ledger Account Part of cash book A separate statement A subsidiary of Journal 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!
