Test CS 2305 Welcome to your International Navodaya Chamber of Commerce (INCOC) Platform ! Subject: Fundamentals of Accounting and Auditing Total Number of Question: 40 Time: 41 Minutes Please check your email after completion of test for result. All the best... Name Phone No Email State 1. Goods sent on consignment are recorded in the books of the consignor as: Sales Purchases Stock Expenses None 2. The consignee records the goods received as: Purchases Goods-in-transit No entry is made Liability None 3. In a joint venture, if separate books are maintained, the profit is divided between: Partners Joint venturers Directors Creditors None 4. The person who draws a bill of exchange is known as the: Drawee Drawer Payee Endorser None 5. When a bill is dishonored, the amount is debited to: Debtor’s Account Creditors’ Account Bank Account Suspense Account None 6. Single entry system is also known as: Double-entry system Complete accounting system Account from incomplete records Bank reconciliation system None 7. In a single entry system, which account is generally maintained? Sales Account Cash Account Fixed Assets Account Depreciation Account None 8. Which of the following ratios is used to measure liquidity? Current Ratio Debt-Equity Ratio Return on Investment Earnings Per Share None 9. Net profit margin is calculated as: (Net Profit / Sales) × 100 (Net Profit / Total Assets) × 100 (Net Profit / Equity) × 100 (Net Profit / Cost of Goods Sold) × 100 None 10. A higher Inventory Turnover Ratio indicates: Slow-moving stock Efficient inventory management Higher debt level Increasing expenses None 11. Which of the following audits is performed to verify the efficiency of resource utilization? Financial Audit Cost Audit Performance Audit Internal Audit None 12. A statutory audit is: Voluntary Compulsory for all companies Only for listed companies Required for partnership firms None 13. Which type of audit is mandatory for companies registered under the Companies Act, 2013? Cost Audit Secretarial Audit Statutory Audit Environmental Audit None 14. Internal control is implemented to: Detect fraud after it occurs Minimize errors and fraud Replace external audit Avoid tax payments None 15. Who appoints the internal auditor? Shareholders Government Management Statutory Auditor None 16. Which document is verified when vouching purchases? Sales Invoice Purchase Invoice Bank Statement Credit Note None 17. Which of the following is an example of an asset that requires physical verification? Accounts Receivable Cash at Bank Plant and Machinery Goodwill None 18. Vouching involves: Checking the accuracy of ledger balances Examining supporting documents for transactions Preparing financial statements Auditing financial reports None 19. The audit report is issued by: Management Internal Auditor Statutory Auditor Shareholders None 20. Which of the following is not a type of audit opinion? Unqualified Opinion Qualified Opinion Adverse Opinion Management Opinion None 21. A disclaimer of opinion is issued when: The financial statements are materially misstated The auditor is unable to obtain sufficient audit evidence The company reports a net loss The auditor is satisfied with the financial statements None 22. Which organization issues auditing standards in India? SEBI ICAI ICSI RBI None 23. SA 200 relates to: Audit Planning Responsibilities of an Auditor Going Concern Fraud Detection None 24. Which fundamental principle is followed in auditing? Confidentiality Professional Skepticism Integrity All of the above None 25. A professional auditor must avoid: Independence Objectivity Conflict of Interest Due Care None 26. A code of ethics for auditors ensures: Increased company profits Proper maintenance of accounts Avoidance of tax audits Professional behavior and integrity None 27. Independence of an auditor is essential to ensure: Favorable audit reports True and fair reporting Increased tax benefits Fast audit completion None 28. Depreciation is charged to account for: Increase in asset value Wear and tear of fixed assets Market fluctuations Profit allocation None 29. Which method provides a constant depreciation amount each year? Straight-Line Method Reducing Balance Method Sum-of-Years-Digits Method Units of Production Method None 30. Under which method does depreciation decrease every year? Straight-Line Method Reducing Balance Method Annuity Method None of the above None 31. A bank reconciliation statement is prepared to: Check accounting frauds Compare cash book and bank statement Record new transactions Prepare a balance sheet None 32. A cheque issued but not yet presented for payment will be: Added to the bank balance Deducted from the bank balance Ignored in BRS Added to the cash book balance None 33. Which of the following is a capital receipt? Sale of goods Interest earned Proceeds from sale of fixed assets Rent received None 34. Which of the following is a revenue expenditure? Purchase of machinery Repairs and maintenance expenses Cost of land Installation of a new factory None 35. Accounting standards are issued by: SEBI ICAI RBI Ministry of Finance None 36. IFRS stands for: Indian Financial Reporting Standards International Financial Reporting Standards International Fiscal and Revenue Standards Internal Finance and Risk System None 37. Auditors detect fraud by using: Internal Audit Reports Analytical Procedures Sales Invoices Depreciation Schedules None 38. Which of the following is an example of fraudulent financial reporting? Misrepresentation of revenue Clerical errors in bookkeeping Delayed payments to suppliers Recording incorrect ledger balances due to a mistake None 39. Government audit is conducted by: External auditors CAG (Comptroller and Auditor General) Internal auditors Private auditors None 40. An auditor's independence is compromised if they: Provide tax consultancy Own shares in the company being audited Perform internal audits Use external audit evidence 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. 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! 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