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 not a branch of accounting? Financial Accounting Cost Accounting Social Accounting Management Auditing None 2. Bank reconciliation statements are prepared to reconcile: Cash balance and bank balance Passbook balance and cash book balance Trial balance figures Bank charges None 3. Which of the following is not shown under current assets in the balance sheet? Cash in hand Stock Patents Prepaid expenses None 4. Which concept emphasizes that the same accounting methods should be applied consistently? Matching Concept Consistency Concept Entity Concept Conservatism Concept None 5. Depreciation is calculated on: Market Value Book Value Salvage Value None of the above None 6. Which account is credited in the journal entry for bad debts written off? Debtor's Account Bad Debts Account Cash Account Provision for Bad Debts Account None 7. Which of the following is prepared to check the arithmetical accuracy of the ledger? Trial Balance Balance Sheet Ledger Summary Journal Entry None 8. Provision for depreciation appears in the balance sheet as: A current liability A deduction from fixed assets An indirect expense An intangible asset None 9. Which financial statement reflects the profitability of a business? Balance Sheet Income Statement Cash Flow Statement Statement of Changes in Equity None 10. The accounting standard that deals with "Revenue Recognition" is: AS 1 AS 9 AS 3 AS 6 None 11. The process of allocating indirect costs to cost centers is called: Apportionment Allocation Absorption Analysis None 12. Overheads are classified into: Direct, Indirect, and Fixed Fixed, Variable, and Semi-variable Material, Labor, and Expenses Direct, Indirect, and Variable None 13. Marginal cost is equal to: Fixed Costs + Variable Costs Total Costs – Fixed Costs Prime Cost + Fixed Costs Total Costs + Variable Costs None 14. Cost accounting primarily helps in: Preparation of financial statements Determining costs and controlling them Tax compliance Investment decisions None 15. When is a budget variance considered favorable? When actual costs exceed budgeted costs When budgeted revenue exceeds actual revenue When actual costs are less than budgeted costs When actual costs match budgeted costs None 16. Which document is used to control raw material usage in production? Material Requisition Note Purchase Order Stores Ledger . Delivery Challan None 17. Which method of pricing issues assumes that materials are issued in the order in which they are purchased? FIFO LIFO Weighted Average Specific Identification None 18. The term “direct labor” refers to: Salaries of supervisors Workers directly involved in production Office staff salaries None of the above None 19. Cost per unit decreases as output increases under which type of cost? Fixed Cost Variable Cost Semi-variable Cost Marginal Cost None 20. Which costing method is used in oil refineries? Job Costing Batch Costing Process Costing Contract Costing None 21. Which accounting principle states that all anticipated losses should be accounted for? Matching Concept Conservatism Concept Materiality Concept Accrual Concept None 22. The balance in the petty cash book represents: Total expenses paid Cash in hand Total cash withdrawn Amount reimbursed by the main cash book None 23. Break-even sales are calculated using which formula? Fixed Costs / Contribution Margin per Unit Variable Costs / Selling Price per Unit Fixed Costs / Selling Price per Unit Total Costs / Contribution Margin per Unit None 24. Which of the following is not an element of cost? Material Labor Overheads Profit None 25. Profit Volume (P/V) ratio is expressed as: Contribution / Sales Fixed Costs / Contribution Profit / Sales Sales / Variable Costs None 26. Which of the following is not included in factory overheads? Supervisor’s Salary Rent of Factory Direct Materials Power Expenses None 27. Operating cost is generally used in which of the following industries? Manufacturing Service Retail Construction None 28. The balance of a suspense account is: A fixed liability A temporary adjustment An asset A revenue item None 29. If the selling price per unit decreases, what happens to the break-even point? Increases Decreases Remains constant Cannot be determined None 30. Which of the following is an intangible asset? Inventory Trade Receivables Goodwill Land None 31. What does "absorption costing" allocate to products? Only fixed costs Only variable costs All costs Only direct costs None 32. Which financial statement measures cash inflows and outflows over a period? Income Statement Balance Sheet Cash Flow Statement Notes to Accounts None 33. What type of costing is used when output consists of standardized products? Job Costing Contract Costing Process Costing Batch Costing None 34. Which of the following is not considered a current liability? Creditors Outstanding Expenses Bills Payable Bank Loan (5 years) None 35. What is the objective of variance analysis? Determine selling price Compare actual and standard performance Control indirect costs Prepare budgets None 36. Which account is debited when wages are paid for factory workers? Wages Account Factory Overhead Account Cash Account Work-in-Progress Account None 37. Which of the following is not a limitation of financial accounting? Does not reflect the effect of inflation Does not provide cost analysis Does not prepare trial balance Focuses only on historical data None 38. Which method is used to apportion service department costs to production departments? Step-Ladder Method FIFO Method ABC Method LIFO Method None 39. The balance in the provision for doubtful debts account is: Added to debtors in the balance sheet Deducted from debtors in the balance sheet Added to cash in the balance sheet Deducted from creditors in the balance sheet None 40. Fixed costs per unit change with: Increase in production Decrease in production Both A and B Remain constant 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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