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 accounting standard deals with revenue recognition? AS-1 AS-9 AS-10 AS-3 None 2. The first step in the accounting cycle is: Preparation of Trial Balance Posting to Ledger Recording in Journal Preparing Financial Statements None 3. Which of the following is a current liability? Bank Loan (repayable after 5 years) Debentures Trade Payables Fixed Deposits None 4. Which document is used to initiate the recording of credit sales? Cash Memo Invoice Voucher Debit Note None 5. Which of the following is an intangible asset? Cash Patent Inventory Machinery None 6. Net profit is calculated as: Sales - Cost of Goods Sold Gross Profit - Operating Expenses + Non-Operating Income Operating Profit - Taxes Total Revenue - Total Expenses None 7. In the Balance Sheet, closing stock is shown under: Current Liabilities Current Assets Non-Current Assets Capital None 8. Which statement shows the financial performance of a business? Balance Sheet Cash Flow Statement Profit and Loss Statement Trial Balance None 9. Capital Expenditure is recorded in the: Income Statement Cash Flow Statement Balance Sheet None of the above None 10. Prepaid expenses are shown in the Balance Sheet under: Current Liabilities Non-Current Liabilities Current Assets Contingent Liabilities None 11. Which error affects only one account? Errors of omission Errors of principle Errors of commission Posting wrong amount None 12. Which error is revealed by a trial balance? Error of omission Wrong casting of ledger balances Compensating error Error of principle None 13. Overstating closing stock will: Overstate net profit Understate gross profit Overstate liabilities Understate assets None 14. If wages are debited to the machinery account, it is an: Error of commission Error of principle Error of omission Compensating error None 15. Errors that affect the trial balance are: One-sided errors Two-sided errors Errors of omission Errors of principle None 16. Which account is credited when a partner contributes capital in cash? Partner’s Capital Account Cash Account Bank Account Partner’s Current Account None 17. Interest on drawings is credited to: Drawings Account Profit and Loss Account Partner’s Capital Account Bank Account None 18. Profit-sharing ratio in the absence of an agreement is: Based on capital contributions 1:2:3 Equal Based on seniority None 19. Which account is debited for the salary of a partner? Partner’s Current Account Profit and Loss Appropriation Account Partner’s Capital Account Cash Account None 20. In a partnership, goodwill brought in by a new partner is credited to: Goodwill Account Capital Accounts of existing partners Revaluation Account None of the above None 21. Which of the following is an example of fixed cost? Direct Labour Electricity Charges Factory Rent Raw Materials1 None 22. Which cost is irrelevant for decision-making? Fixed cost Sunk cost Variable cost Opportunity cost None 23. The cost sheet helps to determine: Selling price Cost per unit Profit All of the above None 24. Overheads are classified into: Direct and Indirect Overheads Fixed, Variable, and Semi-variable Overheads Material and Labor Overheads Product and Period Overheads None 25. Material cost variance is caused by: Price difference only Quantity difference only Both price and quantity difference Labour inefficiency None 26. Batch costing is used in: Sugar manufacturing Furniture manufacturing Hospitals Oil refineries None 27. In process costing, abnormal loss is charged to: Profit and Loss Account Process Account Finished Goods Account None of the above None 28. Which of the following is a non-integrated costing system? Single-entry Double-entry Cost ledger separate from financial ledger Fully integrated with financial ledger None 29. Contract costing is used for: Banking services Construction of roads Oil refineries Hospitals None 30. Operating costing is most suitable for: Manufacturing units Transport services Retail businesses IT companies None 31. Contribution is equal to: Sales - Fixed Cost Sales - Variable Cost Sales - Total Cost Fixed Cost + Variable Cost None 32. PV Ratio is calculated as: (Contribution ÷ Sales) × 100 (Fixed Cost ÷ Sales) × 100 (Profit ÷ Sales) × 100 (Sales ÷ Contribution) × 100 None 33. Margin of safety is calculated as: Total Sales - Break-Even Sales Total Fixed Cost ÷ PV Ratio Contribution - Fixed Cost Sales × PV Ratio None 34. Break-even point is where: Total Revenue = Total Cost Total Revenue > Total Cost Fixed Cost = Variable Cost Profit = Fixed Cost None 35. Which cost remains constant per unit? Fixed Cost Variable Cost Semi-Variable Cost Total Cost None 36. Flexible budgets are suitable for: Static production levels Varying levels of production Fixed expenses only Non-manufacturing organizations None 37. Labour efficiency variance measures: Difference in actual and standard labour rate Time taken for production efficiency Labour hours saved All of the above None 38. Which of the following is not a budgetary control tool? Responsibility accounting Cost control Ratio analysis Audit None 39. Sales variance is calculated as: (Actual Sales - Budgeted Sales) × Standard Price Actual Sales ÷ Budgeted Sales Fixed Cost × Contribution Margin Sales × PV Ratio None 40. In zero-based budgeting: Previous budgets are adjusted for inflation Budgets start from zero for every activity No budgets are prepared Only fixed costs are budgeted 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!
