Test 3 Welcome to your International Navodaya Chamber of Commerce (INCOC) Platform ! Subject: Basic Concept of 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. Which of the following items are not included in Cost Sheet? Bank Interest Cash Discount Donations All of the above None 2. Prime cost may be correctly termed as: The sum of direct material and labour cost with all other cost excluded The total of all cost items which can directly charge to product items. The total cost incurred in producing a finished unit. The sum of the large costs in a product cost. None 3. Sales, Opening Stock and Closing Stock are ₹ 2,40,000, ₹ 36,000 and ₹ 45,000 respectively. If the rate of G.P on cost of goods sold is 25%, then the amount of purchases will be: ₹ 1,83,000 ₹ 1,92,000 ₹ 2,01,000 ₹ 1,89,000 None 4. From the following information, find out purchases of raw material when raw material consumed is ₹ 26,500; closing stock ₹ 4,500 and opening stock ₹ 3,000. ₹ 29,500 ₹ 31,000 ₹ 28,000 ₹ 34,000 None 5. Direct Material and Direct Wages are ₹ 2,32,000 and ₹ 2,05,000 respectively. If the ratio of direct wages and factory overhead is 5:3 then Factory Cost will be: ₹ 4,37,000 ₹ 5,60,000 ₹ 7,78,667 ₹ 5,46,667 None 6. Prime cost-plus factory overheads is known as- Marginal Cost Conversion Cost Commercial Cost Factory Cost None 7. Which costing method is used by Spare-parts manufacturing industry? Process Costing Job Costing Batch Costing Absorption Costing None 8. Which of the following is not a relevant cost? Replacement Cost Sunk Cost Marginal Cost Opportunity Cost None 9. Cost of rectification of defective articles are treated as: Production Overhead Distribution Overhead Selling Overhead. Administrative Overhead None 10. Which of the following would be classified as indirect labour? Assembly workers in a company manufacturing unit Stores assistant in a factory store. An audit clerk in a auditors' firm Masons in a construction company None 11. Cost of free samples and gifts are included in: Prime Cost Factory Overhead Office and Administrative Overheads Selling & Distribution Overheads None 12. Which one is False? Fixed costs per unit increase with increase in output Out of pocket costs involve payment to outsiders. Rent on own building is imputed cost Tender is an estimation of selling price None 13. CAS-16 is related to: Cost Accounting Standard on Depreciation and Amortisation Cost Accounting Standard on Joint Costs Cost Accounting Standard on Quality Control Cost Accounting Standard on Overburden Removal Cost None 14. Wages for abnormal idle time are charged to: Production Cost Job Cost. Abnormal Overhead Costing Profit and Loss Account None 15. Which statement is not True? Replacement cost is the current market cost of replacing an asset or a material Cost accounts provide information for determination of profit or loss Bad debts, legal charges for recovery of debts are considered as selling & distribution expenses Imputed costs are hypothetical cost None 16. Any revenue expense for which a separate fund is available will be: Capitalised and shown in the balance sheet Debited to income and expenditure account Debited to the separate fund Debited to profit and loss account None 17. Subscription received during the year ₹ 50,000; subscription outstanding at the beginning of the year ₹ 6,000. Income from subscription was shown as ₹ 52,000. What amount will be shown as subscription outstanding at the end of the year in the Balance Sheet? ₹ 8,000 ₹ 6,000 ₹ 2,000 ₹ 4,000 None 18. Which one of the following is not prepared by non-profit organizations? Profit and Loss Account Income and Expenditure Account Receipts and Payments Account Balance Sheet None 19. The information for the preparation of receipts and payments account is taken from: Income and Expenditure Account Cash Book Cash Book and Balance Sheet General Ledge None 20. The Receipt and Payment Account shows advance subscriptions ₹ 6,000 and current year's subscription ₹ 44,500. If outstanding subscription of ₹ 4,500 then how much amount of subscription to be credited in the Income and Expenditure Account? ₹ 50,000 ₹ 49,000 ₹ 44,500 ₹ 45,000 None 21. Which of the following items are shown in the Receipt and Payment Account? Only items of capital nature Only items of revenue nature which are received during the period of accounts Only items of revenue nature pertaining to the period of accounts. Both the items of capital and revenue nature which are received during the period of accounts None 22. The manager is entitled to a commission of 5% on profits after deducting this commission. If the profits before charging such commission and interest on capital of ₹ 5,000 are ₹ 89,000, then manager's commission will be: ₹ 4,200 ₹ 4,450 ₹ 4,000 ₹ 4,476 None 23. Which of the following statement is true? Fixed assets - Current liabilities = Current assets Discount on bills is a loss for the drawer and gain for the drawee Profit and loss account covers a period and not the position of a particular day The surplus of a non-profit organisation is distributed among the members None 24. Which one of the following statements is true? Comparatively is one of the accounting concepts Accounting is concerned with both monetary and non-monetary transactions. Joint venture follows the going concern concept Financial statements are part of Accounting None 25. The manufacturing account is prepared: To ascertain gross profit To ascertain the cost of goods manufactured. To ascertain profit or loss on the goods manufactured. To ascertain the cost of sales None 26. At the time of dishonour of an endorsed bill which one out of these accounts would be debited by the drawer? Bill Receivable Account Drawee's Account Bank Account Bill Dishonoured Account None 27. If a bill drawn on 3rd July, 2022 for 40 days payment must be made on: 16th August, 2022 15th August, 2022 14th August, 2022 12th August, 2022 None 28. When no separate set of books of accounts are maintained but each co-venturer keeps record of ail transactions then goods are purchased by a co-venturer for the joint venture, the account to be debited: Joint venture account Venture's capital account Purchase account None of the above None 29. A, for joint venture with B, purchased goods costing ₹ 2,20,000. B sold 80% of the goods for ₹ 2,80,000 Balance of goods were taken over by B at cost plus 10%. Find out profit on joint venture. ₹ 60,000 1,21,600 ₹ 1,08,400 ₹ 99,600 None 30. Which of these accounts is not opened in the books of consignor? Consignment Account Commission Account Goods send on Consignment Account Consignee's Personal Account None 31. Del Credere Commission in consignment business is generally payable: Only on credit sales On cash sales On total sales On recovery of bad debt None 32. For closing stock held by consignee which account must be debited to: Consignment Stock Account Sales Account Consignee Account Consignment Account None 33. X sends out goods to Y, costing ₹ 1,50,000. Goods are to be sold at cost + 25% of sales price. The consignor asked consignee to pay an advance for an amount equivalent to 60% of sales value. The amount of advance will be: ₹ 1,20,000 ₹ 1,00,000 ₹ 1,50,000 ₹ 1,12,500 None 34. No adjustment is required while ascertaining debtors balance at the end of a period against: Bad debt Trade discount Cash discount Return inward None 35. Provision for discount on debtors is created only on: Bad and doubtful debtors Insolvent debtors Total debtors after providing provision for bad debts Total debtors None 36. A bad debt recovered during the year is a: Revenue receipt Capital expenditure Reduction of Sundry Debtors Capital Receipt None 37. A machine is purchased on 1st July, 2022 for ₹ 14,00,000. Expenses incurred on its carriage and installation ₹ 6,00,000. Calculate the amount of depreciation @ 20%, per annum according to Straight Line Method for the first year ending on 31st March, 2023. ₹ 4,00,000 ₹ 3,00,000 ₹ 2,00,000 ₹ 1,00,000 None 38. Which of the following error is an error of principle? ₹ 5,000 received from Shyam credited to Ram's A/c ₹ 5,000 paid to employees on installation of new plant debited to Wages A/c ₹ 500 paid for wages debited to salary A/c ₹ 500 being purchase of raw material debited to purchase A/c ₹ 500 None 39. Goods purchased from Mr. A. but wrongly entered in the sales returns book. After rectification of error the result will: Be increased in gross profit Be decreased in gross profit Be no effect on gross profit Either (a) or (b) None 40. Find the correct statement: Not recording a business transaction is an error of principle Charging a revenue item to capital is a compensating error Writing a debit item on the credit side and vice versa is an error of Commission Bills received from Sohan passed through Bills Payable Book is an error of omission 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!
