General Accounting MCQs

1. Which statement is not an advantage of robotic process automation (RPA)?

2. What effect does a contra asset account have on a balance sheet?

3. Internal controls may be preventative, detective, corrective, or directive. Which is a detective control?

4. On March 15, a business receives an invoice from the power company for utilities used in February. The retailer pays the invoice on April 1. The business uses accrual-based accounting. Which month should the business recognize the expense?

5. Which choice is a general guideline for adequate separation of duties to prevent both fraud and error?

6. What does the cost of a unit of product under absorption costing method consist of?

7. Which answer best describes accruals and deferrals?

8. What do you call a situation where more than one person collaborates to circumvent existing internal controls?

9. Which is not an example of an internal control activity?

10. Which budgeting approach request justification of all expenditures?

11. What does the discontinued operations section of the income statement refer to?

12. How are the three financial statements (income, statement, balance sheet, and cash flow statement) linked?

13. Which is not one of the four perspectives of the balanced scorecard?

14. What would be deducted from the balance per books when doing a bank reconciliation?

15. What situation could be the results of the three retails store employees sharing the same cash register?

16. A firm has $1,000 in debt and $3,000 in assets. What is the firm's debt-to-equity ratio?

17. What is the purpose of an operational audit?

18. Which choice is not a component of internal control?

19. What is the difference between the cost of an asset and the accumulated depreciation for that asset?

20. A company budgeted 1,200 washers, but only 1,000 are produced. It costs $10 to produce a widget. What is the materials variance?

21. Who does an audit committee report to?

22. Which section of a financial annual report describes the corporation's accounting methods?

23. A favorable efficiency variance for direct manufacturing labor indicates that ________.

24. In the table above at an output of four units the amount of normal profit is _________ .

25. Creating the conceptual design and selecting dbms software are part of the ____ phase of the dblc.

26. The highminuslow method basically fits a line through the highest and lowest ________ points.

27. The cash basis of accounting ignores ________.

28. The revenue recognition principle guides accountants in ________.

29. The sales discounts forfeited account ________.

30. Under the perpetual inventory system, discounts taken on an invoice by the buyer would be ________.

31. _____ precisely indicates how much of a firm's sales is converted into profits.

32. Long-term investments are made by the investment center manager for the purpose of ________.

33. When a note receivable is honored, cash is debited for the note's ________ value.

34. The ultimate control of the corporation rests with the ________.

35. Agency costs are likely to arise when _____.

36. A__________________ communicates general rules that cut across the entire organization.

37. This purchase of paper ______ part of gdp because the paper is ______ good.

38. A ____ deals with the preparation for and recovery from a disaster, whether natural or man-made.

39. Evaluated receipts settlement is ________.

40. Explicit costs of an ipo tend to be around ______ of the funds raised.

41. After john garcia became sick after eating licorice; the licorice then became a(n) __________.

42. Generally, debt consolidation loans ____ monthly payments and ____ the interest rate on the debt.

43. The goal of working capital management is to ________.

44. Under bush 43, the u.s. budget deficit neared __________ trillion dollars a year.

45. A credit card would be an example of a(n) ____________________ loan.

46. Stockbrokers loan money to clients who have ____ accounts.

47. Other variable costs per unit subtracted from total cogs per unit equals ________.

48. Elements of tone include _____.