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. The concept which assumes that a business will continue to operate for a long time is: Accrual Concept Matching Concept Going Concern Concept Money Measurement Concept None 2. Which of the following is not a fundamental accounting assumption? Going Concern Consistency Matching Accrual None 3. Which financial statement summarizes the financial position of a business? Profit and Loss Account Balance Sheet Cash Flow Statement Trial Balance None 4. Accounting Standard (AS) 2 deals with: Inventory Valuation Depreciation Accounting Cash Flow Statements Revenue Recognition None 5. The primary objective of Accounting Standard (AS) 3 is: To define financial position To provide information on cash flows To measure liabilities To recognize revenue None 6. Which of the following transactions results in an increase in assets and liabilities? Payment of wages Purchase of goods on credit Payment to creditors Purchase of machinery for cash None 7. Goods withdrawn by the proprietor for personal use should be debited to: Drawings Account Capital Account Purchases Account Sales Account None 8. Depreciation is provided on which of the following assets? Land Inventory Plant and Machinery Cash None 9. The method of depreciation which results in equal depreciation every year is called: Straight-Line Method Reducing Balance Method Units of Production Method Double Declining Method None 10. Errors that affect the trial balance are called: Errors of Principle Errors of Omission Errors of Commission Compensating Errors None 11. A sales invoice for ₹10,000 was entered as ₹1,000 in the books. This is an example of: Error of Commission Error of Principle Error of Omission Compensating Error None 12. Prepaid expenses appear in the: Trading Account Profit and Loss Account Balance Sheet under Assets Balance Sheet under Liabilities None 13. Outstanding wages are shown in the Balance Sheet under: Fixed Assets Current Liabilities Current Assets Long-term Liabilities None 14. Interest on drawings is: Debited to the Capital Account Credited to the Capital Account Debited to the Drawings Account Credited to the Drawings Account None 15. If there is no agreement among partners, profits and losses are shared: In the ratio of capital contributed Equally According to the seniority of partners None of the above None 16. When a partner retires, the remaining partners compensate the retiring partner by: Goodwill adjustment Revaluation of assets and liabilities Both a and b None of the above None 17. The share of goodwill brought in by a new partner is credited to: Goodwill Account Partner's Capital Account Revaluation Account None of the above None 18. Which account is credited when a partner brings additional capital? Cash Account Capital Account Drawings Account None of the above None 19. Del Credere Commission is given to: Consignor Consignee Debtors Creditors None 20. When goods are sent on consignment, they are credited to: Purchases Account Consignment Account Sales Account Goods Sent on Consignment Account None 21. Non-recurring expenses on consignment are: Charged to the consignee's account Added to the cost of goods Charged to profit and loss account None of the above None 22. Shares that are issued at a price lower than their nominal value are called: Preference Shares Equity Shares Shares Issued at a Discount Shares Issued at a Premium None 23. A company can declare dividends only out of: Reserves Profits Both a and b Borrowings None 24. The minimum subscription as per the Companies Act should be received before: Allotment of Shares Issue of Shares Filing Articles of Association None of the above None 25. Underwriting commission is paid to: Directors Brokers Underwriters Bankers None 26. Forfeited shares are shown under: Share Capital Reserves and Surplus Current Liabilities Current Assets None 27. Factory overheads are charged to: Trading Account Profit and Loss Account Cost of Production Administrative Expenses None 28. Over-applied overhead means: Estimated overhead is less than actual overhead Estimated overhead is more than actual overhead Overhead rate is higher None of the above None 29. The cost of abnormal losses is: Charged to the Costing Profit and Loss Account Added to the cost of production Charged to the Work-in-Progress Account None of the above None 30. A profit-volume (P/V) ratio is used for: Assessing financial health Measuring profitability Determining breakeven point Calculating marginal cost None 31. The term "working capital" refers to: Fixed assets of a business Current assets less current liabilities Total assets minus total liabilities None of the above None 32. The objective of financial management is to: Maximize profits Maximize shareholders' wealth Minimize costs Increase sales None 33. Current ratio is calculated as: Current Assets ÷ Current Liabilities Current Liabilities ÷ Current Assets Total Assets ÷ Total Liabilities Working Capital ÷ Fixed Assets None 34. Internal check refers to: Checking by external auditors System of continuous checking by employees Annual verification of accounts None of the above None 35. Audit working papers are the property of: Auditor Client Government Shareholders None 36. Vouching refers to: Checking of journal entries Verification of transactions with supporting documents Checking the trial balance Examination of inventory None 37. Entrance fees received by a non-profit organization are generally treated as: Capital Receipt Revenue Receipt Deferred Income None of the above None 38. The primary financial statements for a non-profit organization are: Trading and Profit & Loss Account Receipts and Payments Account, and Income & Expenditure Account Balance Sheet and Cash Flow Statement None of the above None 39. A subscription received in advance is: An asset A liability An income An expense None 40. Legacy received by a non-profit organization is: Revenue Income Capital Income Deferred Income None of the above 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. 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