Fundamentals of Financial and Cost Accounting Past Paper PDF - June 2023 - Model Question Paper

FOUNDATION EXAMINATION SET 1 MODEL QUESTION PAPER TERM – JUNE 2023 PAPER - 2 FUNDAMENTALS OF FINANCIAL AND COST ACCOUNTING Time Allowed: 1 Hour Full Marks: 100...

FOUNDATION EXAMINATION SET 1 MODEL QUESTION PAPER TERM – JUNE 2023 PAPER - 2 FUNDAMENTALS OF FINANCIAL AND COST ACCOUNTING Time Allowed: 1 Hour Full Marks: 100 Answer all questions. Each question carries 2 marks. 1. The main Purpose of Financial Accounting is? (a) To Provide financial information to shareholders О (b) To maintain Balance Sheet O (c) To minimize taxes O (d) To keep track of liabilities O 2. Trial Balance is used to check the accuracy of _________________. (a) Balance Sheet balances О (b) Ledger Accounts balances O (c) Cash Flow Statement balances O (d) Income Statement balances O 3. Money spent ₹ 12,000 as travelling expenses of the directors on trips abroad for purchase of capital assets is ____________________. (a) Capital Expenditure О (b) Revenue Expenditure O (c) Deferred Revenue Expenditures O (d) None of the above O 4. Which of these errors affect two or more accounts ____________________. (a) Errors of complete omission О (b) Errors of principle O (c) Errors of posting to wrong account O (d) All the three O 5. Purchase price of machine ₹8,90,000, freight and cartage ₹7,000, installation charges ₹30,000, Insurance charges ₹20000, residual value is ₹40,000, estimated useful life 5 years. Calculate the amount of annual depreciation under straight line method? (a) ₹ 1,77,400 О (b) ₹ 1,81,400 O (c) ₹ 1,97,400 O (d) ₹ 1,77,900 O 1 Directorate of Studies, The Institute of Cost Accountants of India  FOUNDATION EXAMINATION SET 1 MODEL QUESTION PAPER TERM – JUNE 2023 PAPER - 2 FUNDAMENTALS OF FINANCIAL AND COST ACCOUNTING 6. Depreciation Accounts is a ___________ account. (a) Personal О (b) Nominal O (c) Real O (d) None of the above O 7. Original cost is ₹1,50,000 residual value is ₹10,000, depreciation for 3rd year @ 10% p.a. under WDV method __________________________. (a) ₹ 14,000 О (b) ₹ 12,150 O (c) ₹ 11,340 O (d) ₹ 12,240 O 8. Bank has directly paid ₹2,250 for rent as per standing instructions. In BRS starting with Pass Book overdraft ____________________. (a) ₹ 2,250 will be added to Pass Book overdraft О (b) ₹ 4,500 will be added to Pass Book overdraft O (c) ₹ 2,250 will be deducted from Pass Book overdraft. O (d) None of the above O 9. Journal is the book of ________ entry. (a) Primary О (b) Secondary O (c) Final O (d) All of the above O 10. Debit side of Bank Pass Book corresponds to ___________________. (a) credit side of Cash Book О (b) debit side of Cash Book O (c) debit side of Trial Balance O (d) credit side of Balance Sheet O 11. To write off bad debt, following entry is passed ___________________ (a) Provision for bad debts debit: Debtors credit О (b) Provision for bad debts debit: Bad debts credit O (c) Bad debts debit: Debtors credit O (d) none of the above O 2 Directorate of Studies, The Institute of Cost Accountants of India  FOUNDATION EXAMINATION SET 1 MODEL QUESTION PAPER TERM – JUNE 2023 PAPER - 2 FUNDAMENTALS OF FINANCIAL AND COST ACCOUNTING 12. A recovery of bad debt _____________________. (a) increases net income О (b) decreases net income O (c) increases gross profit and net income O (d) None of the above O 13. A trial balance will not balance if _____________________. (a) correct entry is posted twice О (b) The purchase on credit basis is debited to purchases and credited to cash O (c) ₹500 cash payment to creditors is debited to creditors for ₹50 and credited O to cash as ₹ 500 (d) None of the above O 14. ₹ 200 paid as wages for erecting a machine should be debited to __________. (a) Repair A/c О (b) Machine A/c O (c) Capital A/c O (d) Furniture A/c O 15. Bad debt is a confirmed_________. (a) Loss О (b) Profit O (c) Revenue O (d) None of the above O 16. A and B purchased a piece of land for ₹40,000 and sold it for ₹60,000 in 2021. Originally A had contributed ₹24,000 and B ₹16,000. What will be the profit on venture? (a) ₹ 20,000 О (b) ₹ 16,000 O (c) ₹ 30,000 O (d) Nil O 3 Directorate of Studies, The Institute of Cost Accountants of India  FOUNDATION EXAMINATION SET 1 MODEL QUESTION PAPER TERM – JUNE 2023 PAPER - 2 FUNDAMENTALS OF FINANCIAL AND COST ACCOUNTING 17. A, for joint venture with B, purchased goods costing ₹2,00,000. B sold 80% of the goods for ₹2,50,000. Balance of goods were taken over by B at cost less 25%. Find out profit on venture? (a) 80,000 О (b) 90,000 O (c) 50,000 O (d) None of the above O 18. What is the nature of joint venture with co-venture account? (a) Nominal Account О (b) Real Account O (c) Personal Account O (d) None of the above O 19. A promissory note contains an ________ ________ to pay. (a) undertaking or promise О (b) request O (c) order O (d) ownership O 20. A purchased goods costing ₹42,500. B sold goods of ₹40,000 at ₹50,000. Balance goods were taken over by A at same gross profit percentage as in case of sale. The amount of goods taken over will be __________________. (a) ₹ 3,125 О (b) ₹ 2,500 O (c) ₹ 3,000 O (d) None O 21. ‘M’ and ‘N’ enter into joint venture where ‘M’ supplies goods worth ₹ 12,000 and spend ₹ 200 on various expenses. ‘N’ sells the entire lot for ₹ 15,000 meeting selling expenses amounted to ₹ 400 profit sharing ratio equal. N remits M the amount due. The amount of remittance will be _________________. (a) ₹ 13,400 О (b) ₹ 14,600 O (c) ₹ 12,800 O (d) ₹ 12,200 O 4 Directorate of Studies, The Institute of Cost Accountants of India  FOUNDATION EXAMINATION SET 1 MODEL QUESTION PAPER TERM – JUNE 2023 PAPER - 2 FUNDAMENTALS OF FINANCIAL AND COST ACCOUNTING 22. Mr. P sold goods to Mr. Q for ₹60,00,00. ½ of the amount will be received in cash and the balance through a Bills Receivable. For what amount Mr. P should draw a bill ______________. (a) ₹ 3,00,000 О (b) ₹ 6,00,000 O (c) ₹ 2,00,000 O (d) ₹ 2,40,000 O 23. A person who endorses a bill is called ________________. (a) drawer О (b) drawee O (c) Bank O (d) endorser O 24. Fixed assets are _________________________. (a) Kept in the business for use over a long time for earning income О (b) Meant for resale O (c) Meant for conversion into cash as quickly as possible O (d) All of the above O 25. Gross profit is equal to ___________________. (a) sales – cost of goods sold О (b) sales – closing stock + purchase O (c) opening stock + purchases – closing stock O (d) none of the above O 26. Income Statement of a charitable institution is known as __________. (a) Trading Account О (b) Profit and Loss Account O (c) Income and Expenditure Account O (d) Receipts and Payments Account O 27. If sales are ₹2,000 and the rate of G.P on cost of goods sold is 25%, then the cost of goods sold will be ___________. (a) ₹1,600 О (b) ₹2,000 O (c) ₹400 O (d) ₹500 O 5 Directorate of Studies, The Institute of Cost Accountants of India  FOUNDATION EXAMINATION SET 1 MODEL QUESTION PAPER TERM – JUNE 2023 PAPER - 2 FUNDAMENTALS OF FINANCIAL AND COST ACCOUNTING 28. The receipts and payments account of a non-profit organization is a _________. (a) Nominal Account О (b) Real Account O (c) Income Statement Account O (d) Financial Account O 29. The capital of a non-profit organization is generally known as _____________. (a) Equity О (b) Accumulated Fund O (c) Finance Reserve O (d) Cash Fund O 30. If ₹1,500 was outstanding at the beginning of the year towards subscription and ₹10,000 is received during the year, with ₹ 2,500 still outstanding at the end of the year the amount to be taken to receipts and payments account is ________. (a) ₹11,000 О (b) ₹8,500 O (c) ₹10,000 O (d) None of the above O 31. Subscription received during the year ₹ 50,000; Subscriptions outstanding at the end of the year ₹ 8,000; Subscription outstanding at the beginning of the year ₹6,000. Net Income from subscription will be— (a) ₹48,000 О (b) ₹64,000 O (c) ₹52,000 O (d) ₹36,000 O 32. By Profit & Loss Account we get _______________. (a) Net Profit О (b) Capital O (c) Gross Profit O (d) Gross Loss O 6 Directorate of Studies, The Institute of Cost Accountants of India  FOUNDATION EXAMINATION SET 1 MODEL QUESTION PAPER TERM – JUNE 2023 PAPER - 2 FUNDAMENTALS OF FINANCIAL AND COST ACCOUNTING 33. The information for the preparation of receipts and payments account is taken from ____________________. (a) Cash Book О (b) Income and Expenditure Account O (c) Cash Book and Balance Sheet O (d) None O 34. Endowment Fund received by a club is a _________________. (a) Revenue Receipt О (b) Capital Receipt O (c) Advance Payment O (d) Revenue Payment O 35. If income is ₹16,000 and ‘deficit’ debited to capital fund is ₹4,300, then expenditure is ____________. (a) ₹16,000 О (b) ₹4,300 O (c) ₹20,300 O (d) None of the above O 36. Legacy are generally_____________. (a) Capitalized О (b) Treated Loss O (c) Revenue Expenses O (d) Deferred Revenue expenses O 37. Which of the following is not a relevant cost? (a) Replacement cost О (b) Sunk cost O (c) Marginal cost O (d) Standard cost O 38. ______________ costing is applied in Canteens. (a) Contract О (b) Operating O (c) Process O (d) Batch O 7 Directorate of Studies, The Institute of Cost Accountants of India  FOUNDATION EXAMINATION SET 1 MODEL QUESTION PAPER TERM – JUNE 2023 PAPER - 2 FUNDAMENTALS OF FINANCIAL AND COST ACCOUNTING 39. In case of ________________ Costing, costs are ascertained only after they have been incurred. (a) Absorption О (b) Standard O (c) Historical O (d) Marginal O 40. Opportunity cost is the best example of: (a) Sunk cost О (b) Standard cost O (c) Relevant cost O (d) Irrelevant cost O 41. CAS ____ stands for Classification of Cost. (a) 2 О (b) 1 O (c) 6 O (d) 4 O 42. Factory Costs = _________ Cost + Factory Overhead. (a) Process О (b) Employee O (c) Material O (d) Prime O 43. Over which of the following costs, management is likely to have least control - (a) wages cost О (b) building insurance cost O (c) machinery breakdown cost O (d) advertisement cost O 44. Variable costs are fixed_____________. (a) for a period О (b) per unit O (c) depends upon the entity O (d) for a particular process of production O 8 Directorate of Studies, The Institute of Cost Accountants of India  FOUNDATION EXAMINATION SET 1 MODEL QUESTION PAPER TERM – JUNE 2023 PAPER - 2 FUNDAMENTALS OF FINANCIAL AND COST ACCOUNTING 45. In a Passenger Transport ________________ is used as an appropriate cost unit. (a) Room - Day О (b) Patient - Day O (c) Tonne – kilometre O (d) Passenger - Km O 46. CAS 2 stands for _____________________. (a) Average (Equalized) Cost of Transportation О (b) Material Cost O (c) Capacity Determination O (d) None of the above O 47. Which of the following items is excluded from cost Accounts? (a) Income tax О (b) interest on debentures O (c) cash discount O (d) All of these O 48. The following is included in financial accounts, but not in cost accounts. (a) carriage and freight О (b) Excise duty O (c) Patent O (d) Dividend paid O 49. Direct expenses are also known as ______________. (a) Overhead expenses О (b) Process expenses O (c) Chargeable expenses O (d) Factory overhead O 50. Which cost system description applies to the manufacture of 20 engraved doors for the new club house at a golf course? (a) contract О (b) process O (c) batch O (d) service O 9 Directorate of Studies, The Institute of Cost Accountants of India