PSU Test 1 Welcome to your International Navodaya Chamber of Commerce (INCOC) Platform ! 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. 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 Cos 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 An audit clerk in a auditors' firm Stores assistant in a factory store 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. Which Article in the Constitution of India, 1950 has provisions for introduction of a bill in the Parliament of India? Article 119 Article 141 Article 107 Article 243 None 17. Money Bill is introduced in which House of the Parliament? Council of People - Lok Sabha Council of States - Rajya Sabha Both the Houses None of the Houses None 18. The essence of Sub-Ordinate legislation can be found in which Article of the Constitution of India, 1950? Article 12 Article 32 Article 13 Article 14 None 19. Which is the highest civil court in a district? Sessions Court Supreme Court of India District Court High Court None 20. When was the Supreme Court of India established? 26 th November 1949 26 th January 1950 28 th January 1950 1 st October 1937 None 21. What kind of structure does the Indian Constitution have? Unitary Federal Autocracy Totalitarian None 22. Which is the lowest court to approach for criminal matters? Munsif Court Judicial Magistrate Sessions Court District Court None 23. Fundamental Rights are mentioned under which part of the Constitution of India? Part-II Part-Ill Part-IX Part-XII None 24. What is a Private Bill? A bill introduced by a member other than a Minister Bill introduced by a private citizen Bill introduced by a Private company A bill relating affairs which are private to individual None 25. Secondary/Sub-ordinate legislation cannot go beyond: The ambit of the Act The ambit of the Act or the Constitution of India The Constitution of India Directive Principles of State Policy None 26. The determination of expenses for an accounting period is based on the concept of Consistency concept Periodicity concept Timeliness concept Industry practice None 27. Decrease in the amount of creditors results in Increase in assets Increase in cash Decrease in cash No change in assets None 28. Which of the following is an accounting equation? Capital = Assets + Liabilities Capital = Assets - Liabilities Assets = Liabilities - Capital Liabilities = Assets + Capital None 29. Prepaid insurance premium account is Tangible assets account Liability account Nominal account Representative personal account None 30. A determination of expenses for an accounting period is based on the principle of Objectivity Morality Matching Pricing None 31. Long term assets without any physical existence but, having a value are known as: Investments Current assets Intangible asset Fixed assets None 32. Provision for bad debt is made as per the Entity concept Conservatism Concept Cost Concept Going Concern Concept None 33. Income tax of the sole trader paid is Debited to P & L Account Debited to Trading Account None Debited to his Capital Account None 34. Narration are given of the end of Final accounts Trial balance each ledger account Each journal entry Each ledger accounts None 35. Which of the following is an example of Personal Account? Machinery Creditor Cash Rent None 36. Festival advance of ₹ 25,000 was given to employees at the time of Deepawali. It is a Revenue Expenditure Capital Expenditure Deferred Revenue Expenditure Not an Expense None 37. ₹ 8,000 is spent of traveling expenses of the partner to a foreign trip for purchased of an asset to be used for the business is a/an — Capital Expenditure Revenue Expenditure Revenue Loss Capital Loss None 38. The expenditure ₹ 2,000 incurred on a trial run of newly purchased machine is. Preliminary expenses Capital expenditure Revenue expenditure Deferred revenue expenditure None 39. ₹ 8,000 is spent on travelling expenses of the partner to a foreign trip for purchase of an asset to be used for the business is a/an: Capital Expenditure Revenue Expenditure Revenue Loss Capital Loss None 40. If repair cost is ₹ 20,000, white wash expenses are ₹ 10,000, cost of extension of building is ₹ 3,50,000 and cost of improvement in Electrical wiring system is T 19,000 the amount to be expensed i.e.: ₹ 3,99,000 ₹ 39,000 ₹ 30,000 ₹ 49,000 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!
