Welcome to your International Navodaya Chamber of Commerce (INCOC) Platform ! Subject: Financial 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 considered an operating activity in the cash flow statement? Issuance of shares Payment of dividends Purchase of machinery Sale of goods None 2. The method of accounting that records inventory purchases at the cost at which goods were acquired is called: FIFO LIFO WAC (Weighted Average Cost) Specific identification None 3. What does the term 'consignment' mean in accounting? The selling of goods by the consignor The transfer of goods to an agent for sale The sale of goods on credit The return of unsold goods None 4. Which of the following is an example of a financial ratio? Profit margin Depreciation method Cost of sales Cost structure None 5. The payment of wages to factory workers is an example of which type of cost? Fixed cost Variable cost Semi-variable cost Period cost None 6. Which of the following is not classified as a non-current asset? Property, plant, and equipment Goodwill Inventory Intangible assets None 7. Which of the following is an example of a fixed cost? Sales commissions Rent for office space Raw material cost Direct labor None 8. What is the primary purpose of the statement of changes in equity? To show the changes in a company’s financial position To report income and expenses over a period To show the movement of equity from the beginning to the end of the period To show the cash inflows and outflows from investing activitiesTo show the cash inflows and outflows from investing activities None 9. Which of the following costs is not included in the cost of goods manufactured? Direct materials used Direct labor costs Factory overheads Administrative expenses None 10. Which accounting principle requires that expenses should be matched with revenues? Conservatism Revenue recognition Matching principle Historical cost None 11. The method used to allocate overheads in the process of absorption costing is: Activity-based costing Machine hours or labor hours Variable costing Marginal costing None 12. Which of the following is an example of an intangible asset? Machinery Patent Cash Building None 13. Which of the following accounts is classified as a current asset? Buildings Accounts payable Accounts receivable Long-term investments None 14. A company’s gross profit is calculated by subtracting: Operating expenses from net sales Cost of goods sold from net sales Administrative expenses from total revenue Interest expense from operating income None 15. Which of the following is a method used to determine the cost of goods sold in a periodic inventory system? Perpetual method FIFO LIFO Gross profit method None 16. The primary responsibility of a cost accountant is to: Prepare the financial statements Prepare the income tax returns Ascertain the cost of production Prepare the statement of cash flows None 17. Which of the following is not a feature of a partnership? Sharing of profits Limited liability Mutual agency Co-ownership of assets None 18. Which of the following is not a part of a cost sheet? Prime cost Administrative expenses Finance Loss on sale of assets None 19. The break-even point is where: Total revenue equals total cost Total revenue exceeds total cost Marginal cost equals average variable cost Fixed cost equals variable cost None 20. Which of the following is an example of a period cost? Direct Materials Rent Expense Production Wages Direct Labor None 21. In a manufacturing business, factory overhead includes: Salaries of factory managers Cost of raw materials Wages of factory workers Marketing expenses None 22. The accounting period concept means that: A business’s transactions are recorded at any time The financial results of a business are reported over a fixed period of time A business prepares accounts when required by the tax authority The fiscal year of a company always starts on 1st January None 23. In cost accounting, the term ‘marginal cost’ refers to: The cost incurred to produce one additional unit of product The total cost of production The fixed cost of production The average cost per unit of production None 24. Which of the following is considered a direct cost in cost accounting? Factory rent Salaries of administrative staff Direct materials Depreciation on office equipment None 25. Which of the following is the primary source of information for the preparation of a cash flow statement? Income statement Balance sheet Trial balance Profit and loss account None 26. In financial accounting, the term ‘accrual’ refers to: Cash received before earning Revenues and expenses recognized when earned or incurred, regardless of cash transactions Earnings of the company Decrease in liabilities None 27. Which of the following is not a factor considered while calculating the cost of inventory? Purchase cost Holding cost Selling price Import duties None 28. In accounting, which of the following is a contra asset account? Accumulated depreciation Accounts receivable Accounts payable Inventory None 29. Which of the following costs is a part of prime cost? Selling expenses Administrative expenses Direct labor Interest on capital None 30. Which of the following is true about the perpetual inventory system? Inventory is updated only at the end of the accounting period Inventory is updated after each purchase and sale transaction Inventory is updated once every quarter Inventory is updated once every month None 31. Which of the following accounting methods matches revenue with the expenses incurred to generate it? Cash basis accounting Accrual basis accounting Hybrid accounting Single-entry accounting None 32. Which of the following is not an example of a financial accounting report? Balance sheet Profit and loss statement Cash flow statement Cost sheet None 33. Which of the following is included in the cost of sales? Operating expenses Gross profit Cost of goods sold Administrative expenses None 34. The primary purpose of an income statement is to: Show the company’s financial position Calculate tax liabilities Report the company’s revenue and expenses over a period Prepare the cash flow statement None 35. Which of the following is the main disadvantage of the FIFO method of inventory valuation? It does not consider the actual cost of inventory It may result in higher taxes during inflationary periods It is difficult to implement It overstates the cost of goods sold None 36. Which of the following is a typical item included in the working capital of a business? Long-term loans Inventory Capital expenditure Retained earnings None 37. Which accounting standard deals with the recognition and measurement of revenue? AS-1 AS-2 AS-9 AS-10 None 38. Which of the following accounts is classified as a liability? Prepaid expenses Bank overdraft Trade receivables Inventories None 39. In which of the following accounting methods are only the variable costs considered for decision-making? Absorption costing Marginal costing Standard costing Activity-based costing None 40. Which of the following is an example of an indirect material? Raw materials used in production Paper used for packaging Lubricants used in machines Direct materials used in manufacturing 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!
