Account Test

Accounting provides information on

• Cost and income for managers

• Company and tax liability for the particular year

• Financial condition of an institution

• All of the above

The long term assets

that have no physical existence but are rights that have value is known as

• Current assets

• Fixed assets

• Intangible assets

• Investments

The debts which are to be repaid

within a short period (year or less) are known as

• Current liabilities

• Fixed liabilities

• Contingent liabilities

• All of the above

The following is a statement showing the financial status of the company at any given time

• Trading account

• Profit & Loss statement

• Balance Sheet

• Cash Book

What is cost management?

• Process to create more value for customer with few resource

• Tool to control the budget and expenses of a business.

• Process of planning and controlling the budget and expenses

• Process to plan the operating and expanding expenditure.

What is/are the importance(s) of cost management?

• To improve overall business profitability.

• To explore opportunity through cost optimization.

• To analyze and improve internal and external cost driver.

• I think all answers are correct.

In activity based costing, a cost driver is:

• an overhead cost

• a direct product cost

• a resource consuming activity that causes overheads

• a variable cost

The financial statement that reports whether the business earned a profit and also lists the revenues and expenses is called the: 

• Balance Sheet
• Statement of Retained Earnings
• Statement of Cash Flows
• Income Statement

If total expenses exceed total revenue, a net loss is reported

• True
• False

What does COGS stand for?

• cost of goals scored
• cost of goods stocked
• cost of goods sold
• cost of goods solvent