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 of the following is a qualitative characteristic of accounting information? Reliability Complexity Subjectivity Inconsistency None 2. The accrual basis of accounting means: Recording revenues when cash is received Recording expenses when cash is paid Recording revenues and expenses when incurred, regardless of cash flow None of the above None 3. Which of the following is not a subsidiary book? Sales Book Purchase Book Cash Book Ledger None 4. The accounting equation is represented as: Assets = Liabilities + Income Assets = Liabilities + Capital Assets = Liabilities - Capital Assets = Capital - Liabilities None 5. Which accounting standard deals with inventory valuation? AS-2 AS-9 AS-6 AS-10 None 6. What type of account is “Bad Debts Recovered”? Expense Income Asset Liability None 7. Which of the following does not form part of the trial balance? Sales Closing stock Purchases Cash None 8. Which book is used to record cash transactions? Journal Purchase Book Cash Book Ledger None 9. The balance of the suspense account is: Always on the debit side Always on the credit side May appear on either side Adjusted against assets None 10. Which error is detected by preparing a trial balance? Posting of wrong amounts Errors of principle Casting errors in ledgers Errors of omission None 11. Which of the following errors does not affect the trial balance? Errors of omission Errors of commission Errors of principle None of the above None 12. A suspense account is used for: Revenue recognition Rectification of errors Adjusting depreciation Recording doubtful debts None 13. If rent paid is debited to wages account, it is an error of: Commission Principle Omission Compensating None 14. Which type of error occurs when a transaction is completely omitted from the books? Error of omission Error of commission Compensating error Clerical error None 15. Which type of error is difficult to detect? Errors of omission Errors of principle Compensating errors Errors of commission None 16. Which of the following is a direct cost? Factory rent Supervisor’s salary Raw materials Depreciation None 17. Labour costs can be classified into: Fixed and variable costs Direct and indirect costs Product and period costs None of the above None 18. Factory overheads include: Direct wages Selling expenses Indirect labour Direct materials None 19. Which of the following is not a classification of cost? Material cost Labour cost Process cost Overhead cost None 20. Which cost changes with the level of activity? Fixed cost Variable cost Semi-variable cost Sunk cost None 21. Job costing is applicable for: Electricity generation Construction projects Sugar manufacturing Chemical industries None 22. Which costing method is used in the steel industry? Job costing Process costing Contract costing Batch costing None 23. Which of the following industries is most likely to use batch costing? Pharmaceutical Airlines Textiles Banking None 24. In which type of costing is each job treated as a cost unit? Process costing Job costing Operating costing Batch costing None 25. Unit costing is suitable for: Construction companies Hospitals Cement manufacturing Software companies None 26. Variable cost per unit: Changes with the level of activity Remains constant Increases with production Decreases with production None 27. In marginal costing, fixed costs are treated as: Period costs Product costs Mixed costs Sunk costs None 28. Which costing technique is used to determine the minimum selling price of a product? Marginal costing Absorption costing Activity-based costing Standard costing None 29. Standard costing is most suitable for: Small-scale enterprises Service industries Large manufacturing industries Trading companies None 30. Fixed cost per unit decreases when: Production decreases Production increases Total cost decreases Sales revenue increases None 31. Budgetary control is: A planning tool A controlling tool Both a planning and controlling tool None of the above None 32. Which budget shows expected cash inflows and outflows? Sales budget Production budget Cash budget Overhead budget None 33. Which of the following is not a type of budget? Fixed budget Flexible budget Operating budget Sunk budget None 34. Decision-making is based on: Fixed costs Total costs Relevant costs Irrelevant costs None 35. Break-even point is the level where: Total revenue = Total cost Fixed cost = Variable cost Profit = Fixed cost Contribution = Loss None 36. Opportunity cost is: Historical cost Sunk cost Cost of the next best alternative Fixed cost None 37. Process loss is treated as: Normal loss Abnormal loss Standard loss None of the above None 38. Cost of abnormal loss is transferred to: Cost of production Profit and Loss Account Cost of sales Finished goods account None 39. Direct expenses are also known as: Fixed costs Chargeable expenses Period costs Overheads None 40. Operating costs are relevant for: Retail stores Transport companies Banks Educational institutions 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! To begin the quiz, please grant this quiz access to your camera.Time is Up!Time is Up!
