Welcome to your International Navodaya Chamber of Commerce (INCOC) Platform ! Subject: Fundamentals of Financial and Cost 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 concept ensures that all expenses incurred to generate revenue are recorded in the same period as the revenue? Matching Concept Accrual Concept Consistency Concept Prudence Concept None 2. The dual aspect concept states that: Debit = Credit Assets = Liabilities + Capital Revenue = Expenses Cash Inflows = Cash Outflows None 3. The convention of conservatism is also known as: Materiality Realization Prudence Consistency None 4. According to the going concern concept, a business is assumed to: Operate for an indefinite period Liquidate in the near future Prepare accounts for a specific project only Operate without borrowing funds None 5. Which accounting principle is followed when non-cash expenses like depreciation are recorded? Cost Principle Accrual Principle Consistency Principle Historical Cost Principle None 6. Depreciation is charged on: Current liabilities Fixed assets Current assets Intangible assets only None 7. Which method of depreciation provides the same amount every year? Straight Line Method Written Down Value Method Sum-of-the-Years Digits Method Units of Production Method None 8. Under the reducing balance method, depreciation is calculated on: Original cost Salvage value Written down value Market value None 9. Accumulated depreciation is shown in the Balance Sheet as: An asset A liability A deduction from the related asset An expense None 10. If the residual value is zero, the amount of depreciation equals the: Market value of the asset Salvage value Cost of the asset None of the above None 11. A trial balance is prepared to: Check the accuracy of transactions Prepare financial statements Record all transactions Analyze cash flows None 12. Which type of account is credited when goods are sold on credit? Asset Liability Income Expense None 13. If a trial balance does not agree, the difference is temporarily placed in: Suspense Account Adjustment Account Profit and Loss Account None of the above None 14. Which of the following is an error not revealed by the trial balance? Omission of an entry Recording a transaction twice Incorrect totaling in the subsidiary book Incorrect balancing of an account None 15. Which ledger account is debited for cash paid for wages? Cash Account Wages Account Capital Account Sales Account None 16. The cost incurred to store materials is known as: Ordering cost Carrying cost Inventory cost Production cost None 17. EOQ (Economic Order Quantity) is the: Maximum quantity to be ordered Minimum stock level Optimal order quantity Reorder point None 18. ABC analysis is used for: Material Classification Labour Allocation Overhead Distribution Budget Preparation None 19. In FIFO method, the cost of goods sold is based on: Latest costs Earliest costs Average costs Replacement cost None 20. The reorder level is determined as: Maximum stock - Minimum stock Safety stock + Average consumption × Lead time EOQ + Safety stock None of the above None 21. Idle time wages are treated as: Direct cost Indirect cost Capital expenditure None of the above None 22. Labour turnover refers to: Efficiency of labour Replacement of employees Absenteeism of workers Wages paid to workers None 23. Time rate system of wages is suitable when: Output is difficult to measure Workers are skilled Machines determine the output Productivity is the main goal None 24. A premium bonus plan motivates workers to: Work overtime Improve quality Increase productivity Reduce absenteeism None 25. Labour efficiency variance measures the: Savings in wage rates Time saved in production Difference in actual and standard labour hours Overtime paid to workers None 26. Overhead costs are absorbed into cost units based on: Allocation Apportionment Absorption rates None of the above None 27. Which base is commonly used to absorb factory overheads? Direct wages Direct material cost Machine hours All of the above None 28. Apportionment of overheads is done to: Allocate costs to cost units Divide costs between cost centers Identify variable costs None of the above None 29. The term "under-absorbed overhead" refers to: Overhead charged less than incurred Overhead charged more than incurred Overhead charged equally None of the above None 30. Which of the following is not included in factory overheads? Factory rent Depreciation on machinery Salaries of factory supervisors Direct material None 31. Which type of budget is revised frequently to reflect actual activity levels? Static Budget Flexible Budget Zero-Based Budget Master Budget None 32. In make-or-buy decisions, which cost is relevant? Sunk cost Fixed cost Opportunity cost Incremental cost None 33. Which variance indicates the difference between budgeted and actual profit? Sales Variance Profit Variance Fixed Overhead Variance Labour Efficiency Variance None 34. Which budget shows expected cash inflows and outflows? Sales Budget Cash Budget Capital Expenditure Budget Production Budget None 35. Marginal costing is primarily used for: Financial reporting Decision making Budgeting Auditing None 36. Which cost is considered in marginal costing for decision-making? Fixed Cost Variable Cost Semi-Variable Cost Sunk Cost None 37. In marginal costing, contribution is equal to: Sales - Variable Cost Sales - Fixed Cost Sales - Total Cost Total Cost - Fixed Cost None 38. Which variance measures the effect of the difference between standard and actual selling prices? Sales Volume Variance Sales Price Variance Material Price Variance Profit Volume Variance None 39. Fixed costs are considered irrelevant for marginal costing because they: Change with the level of production Remain constant Are part of variable costs None of the above None 40. The break-even point can be calculated using the formula: Fixed Costs ÷ Contribution per Unit Variable Costs ÷ Sales Total Costs ÷ Contribution Margin Contribution Margin ÷ Fixed Costs 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. 1 2 3 4 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! 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