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 Management Accounting Taxation Accounting None 2. Which principle requires that expenses be matched with revenues? Conservatism Consistency Matching Materiality None 3. Which account is affected in a credit purchase? Purchase Account Sales Account Debtor Account Cash Account None 4. The financial position of a business is shown in the: Profit and Loss Statement Cash Flow Statement Balance Sheet Trial Balance None 5. Outstanding salaries are classified as: Asset Liability Income Expense None 6. What is the journal entry for goods sold on credit? Cash A/c Dr. To Sales A/c Sales A/c Dr. To Debtors A/c Debtors A/c Dr. To Sales A/c None of the above None 7. Which of the following accounts has a debit balance? Capital Revenue Expense Liability None 8. Which of the following errors affect the trial balance? Errors of omission Errors of commission Errors of principle Errors of duplication None 9. A ledger is a: Journal book Subsidiary book Principal book Source document None 10. The process of transferring journal entries to ledger accounts is called: Posting Recording Balancing Summarizing None 11. Depreciation is charged on: Current liabilities Fixed assets Current assets Intangible assets only None 12. Under the straight-line method, depreciation is: Constant each year Increasing every year Decreasing every year Based on usage None 13. Which of the following is not a method of depreciation? Written Down Value Method Straight Line Method Amortization Method Reducing Balance Method None 14. Accumulated depreciation is shown on the: Asset side of the Balance Sheet Liability side of the Balance Sheet Debit side of the Income Statement Credit side of the Income Statement None 15. Which accounting principle supports charging depreciation on fixed assets? Going Concern Prudence Consistency Historical Cost None 16. The primary purpose of a trial balance is to: Determine net profit Verify the arithmetical accuracy of accounts Detect all errors None of the above None 17. Errors of omission affect: Trial Balance Both Trial Balance and Financial Statements Financial Statements only None of the above None 18. Which of the following is not a type of error? Error of principle Error of consistency Error of commission Error of omission None 19. Suspense accounts are opened to: Rectify all errors Adjust for unrecorded transactions Balance a trial balance Record contingent liabilities None 20. Which of the following is an error of principle? Recording wages as purchases Recording rent in wages account Posting the wrong amount Missing a transaction None 21. The total of all direct costs is known as: Fixed Cost Prime Cost Total Cost Marginal Cost None 22. Cost accounting focuses primarily on: Legal compliance Financial position Cost control and reduction Tax computation None 23. Which of the following is an indirect expense? Wages Raw material Rent Factory power None 24. The cost unit for a hospital is: Per patient Per bed Per treatment All of the above None 25. Which method of costing is suitable for construction contracts? Process Costing Contract Costing Batch Costing Job Costing None 26. In marginal costing, fixed costs are: Product Costs Period Costs Relevant Costs Sunk Costs None 27. Standard costing involves: Determining actual costs Establishing predetermined costs Excluding variances from cost analysis None of the above None 28. Which variance is calculated in standard costing? Material Cost Variance Labour Efficiency Variance Overhead Variance All of the above None 29. Break-even analysis is used to: Calculate profit Determine fixed costs Determine the level of sales required to cover costs Determine the value of assets None 30. Contribution is equal to: Sales – Variable Costs Sales – Fixed Costs Total Costs – Variable Costs Fixed Costs + Profit None 31. The master budget is: A detailed departmental budget A summary budget incorporating all other budgets A sales forecast A production budget None 32. Cash Budget is prepared to: Predict future sales Monitor cash inflows and outflows Evaluate the cost of debt Determine capital structure None 33. The difference between standard cost and actual cost is known as: Margin Variance Contribution Profit None 34. Which budget is prepared first? Cash Budget Master Budget Sales Budget Production Budget None 35. Material usage variance is caused by: Price change Wastage or inefficiency Labour cost changes Overhead costs None 36. Cost per unit is calculated by: Total Cost ÷ Units Produced Fixed Cost ÷ Units Sold Variable Cost ÷ Units Produced Total Cost × Units Produced None 37. Sunk costs are: Relevant for decision-making Irrelevant for decision-making Costs incurred in the future Always variable costs None 38. Direct costs are also called: Indirect costs Controllable costs Product costs Overheads None 39. Labour turnover is measured as: Total labour cost ÷ Units produced No. of workers leaving ÷ Average no. of workers × 100 Fixed cost ÷ Total cost × 100 Variable cost ÷ Labour hours worked None 40. Operating cost is applicable for: Manufacturing companies Service organizations Trading companies Non-profit organizations 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!
