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The COS exam has 100 questions and runs 1 hours 15 minutes.
These 10 free COS questions are organized by exam domain, so you can see how each part of the Certified Outsourcing Specialist: Finance and Accounting (COS) blueprint is tested. Reveal the answer and explanation under each question.
An overdue customer pays an invoice whose revenue was recognized in the previous month. The receivable has no loss allowance, and the payment settles it in full without any discount, interest or bank fee. What is the immediate effect on total assets and total equity?
Correct answer: A - Total assets unchanged; total equity unchanged.
A supplier invoice for RM84,000 was entered once from the invoice and again from the monthly supplier statement. Both entries have generated approved transfers due today. The invoice and delivery record confirm a single purchase, still unpaid. The payment file has not reached the bank. What must happen before release?
Correct answer: D - Remove the duplicate from the ledger and payment file; pay the verified invoice.
An automatic bank withdrawal of RM6,300 comprises RM6,000 of loan principal and RM300 of current-month interest. The interest is not capitalized and has not been accrued. None of the withdrawal has been recorded. How should the withdrawal be journalized?
Correct answer: C - Debit Loan payable RM6,000 and Interest expense RM300; credit Bank RM6,300.
The receivables control account agrees with the total of the customer ledger. A bank receipt and remittance advice confirm that Alder Ltd paid its invoice in full, but Alder's account still shows it outstanding. Birch Ltd, which made no payment, has an unexplained credit for the same amount. Where is the error most likely to be?
Correct answer: C - Alder's receipt was allocated to Birch's customer account.
On 1 October, an accrual-basis business pays RM18,000 for twelve months of support from October through September. It debits the full amount to Support expense. Service is provided evenly, and no further entry has been made. Select the adjustment needed at 31 December.
Correct answer: A - Debit Prepaid support RM13,500; credit Support expense RM13,500.
The June bank statement shows that a cheque issued and correctly recorded on 30 May cleared on 3 June. How does this affect the 31 May reconciliation?
Correct answer: D - Deduct it from the May bank-statement balance; do not post another ledger entry.
During the year, a company receives cash from issuing ordinary shares and pays dividends out of accumulated profits. An analyst includes the share proceeds in income and the dividends in operating expenses. How should these two items affect reported profit?
Correct answer: C - Exclude both from profit; they are equity transactions with owners.
A wholesaler uses the same ratio definitions in both years. Its current ratio rises from 1.9 to 2.3, while its quick ratio falls from 1.3 to 0.8. Inventory and prepayments are its only current assets excluded from the quick ratio. What do these ratios establish?
Correct answer: B - Current-liability coverage relies more on inventory and prepayments.
An independent project requires RM70,000 today. It will generate three annual net incremental cash inflows of RM30,000, the first exactly one year from today, with no other future cash flows. A RM6,000 feasibility study was paid for last month and cannot be recovered. At the 10% required return, the three-payment ordinary-annuity present-value factor is 2.487. Ignore tax and financing constraints. On net present value alone, should the company undertake the project?
Correct answer: A - Yes; its net present value is approximately positive RM4,610.
A Malaysian company raises funds by issuing new ordinary shares. Weeks later, investors resell those shares on Bursa Malaysia. Who receives the resale proceeds, and which body has the statutory mandate to regulate and develop Malaysia's capital market?
Correct answer: B - The selling investor; Securities Commission Malaysia (SC).
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