General Business Accounting MCQs

1. Under the _____, partnership assets are arranged in a certain order to pay any outstanding debts.

2. When a business records accrued interest expense on a note payable ________.

3. Because ________ are less liquid for the depositor than ________, they earn higher interest rates.

4. Bank capital is equal to ________ minus ________.

5. The contribution margin income statement presents ________ below the contribution margin line.

6. When a division is operating at capacity, the transfer price should be ________.

7. With _____, marketers group people by their values, attitudes, personality, and lifestyle.

8. Set up time is disregarded as an improvement priority under the ____ manufacturing concept.

9. By increasing ________, a manager can increase operating income under absorption costing.

10. Calculating gross pay for hourly workers is an example of ________ decision making.

11. Changes in activity have a(n) _________ effect on fixed costs per unit

12. When a company uses the allowance method to measure bad debts, ________.

13. When discussing weighing schemes for calculating the weighted average cost of capital, ________.

14. When the sales price per unit decreases, the contribution margin per unit ________.

15. When the total fixed costs increases, the contribution margin per unit ________.

16. The income statement of a service company will most likely include ________.

17. When a company pays cash for a long-term investment in bonds, ________.

18. ________ includes general management, finance, accounting, legal, and government affairs.

19. __________ is the total combined values of all of the company’s customers.

20. A shortened form of the ledger is called a ________.

21. An entity that buys goods and sells them to customers at a markup is a ________.

22. An unfavorable flexible budget variance in operating income might be due to a(n) ________.

23. At the maturity of a note payable, a borrower will pay ________.

24. Discounted cash flow methods, such as net present value and internal rate of return, ________.

25. Dividends normally carry a _______ balance and are shown in the ______________.

26. In multiple regression, plot the residuals against ____ to detect changing variability

27. Inventory reduction is a ____ principle.

28. Payment cards with disposable numbers are known as _____.

29. The commitment concept says that plans should ________.

30. The current portion of long-term notes payable is ________.

31. The direct materials budget is prepared using information from the ________ budget.

32. The ima?s ethical standards include all of the following except ________.

33. The predetermined overhead allocation rate is calculated by dividing ________.

34. When preparing the cost of goods sold budget, ________.

35. _____ are people who are prompted to apply for a job by someone within the organization.

36. The amount of net income is transferred from ________ to ________.

37. ____ manufacturing philosophy emphasizes quality and zero defects.

38. All fixed costs are listed ________ on a contribution margin income statement.

39. Given a price of p2, this firm in a purely competitive industry should ___________

40. The ________ capital budgeting method uses accrual accounting income.

41. Under variable costing, a unit of a product includes ________.

42. Reduction in production cost results in ________.

43. The entry to record the purchase of direct materials on account would include a ________.

44. The interest rate that investors demand to earn for loaning their money is known as the ________.

45. Total revenue divided by ________ = units sold.

46. Underallocated overhead occurs when ________.

47. A cost center responsibility report ________.

48. In a negative message regarding a transaction, the salutation should be _____.

49. When 1,000 shares of $3 stated value common stock is issued at $18 per share, ________.

50. All of the following are assets except ________.

51. The revenue recognition principle guides accountants in ________

52. __________ relate to the effort spent in making sales.

53. When deciding whether to discontinue a segment of a business, relevant costs include ________.

54. Activity drivers can be classified as either ____ or ____.

55. At the internal rate of return, the present value of net cash inflows will equal the ________.

56. A short-term creditor is primarily interested in the __________ of the borrower.

57. The cost of goods sold is subtracted from sales to arrive at _____.

58. ________ are a company's decision makers.

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

60. Volatility refers to the degree of ________ within an environment.

61. ________ is pay stated as a percentage of a sale amount.

62. A ____ invests money in the business but has no management responsibility.

63. A _____ cost occurs when the amount used varies based on the volume of service provided.

64. _____ define(s) the specific types of people the advertiser wants to reach.

65. _____ are numbers or letters assigned in a specific order.

66. When a company receives cash from customers before earning the revenue, _________ will be credited.

67. ____ manufacturing deals with several suppliers in hopes of finding the best price.

68. A correlation coefficient of _____ provides the greatest possible risk reduction to the firm.

69. If a company retires preferred stock, ________.

70. The ________ capital budgeting model considers both profitability and the time value of money.

71. Disaster recovery typically looks at the __________.

72. In the accompanying figure, the book rep table displays in ____.

73. Proponents of the emh typically advocate __________.

74. The amount spent by a publishing company to pay for manufacturing its books is called ________.

75. Income __________ when there is zero beginning inventory and all inventory units produced are sold.

76. The standard quantity per unit defines the ________.

77. The two methods that use present values to analyse capital investment proposal consider the _____.

78. Roll-forward work normally occurs between the ____ and the ____.

79. Salaries payable, interest payable, and unearned revenue are examples of ________.

80. Salespeople often are paid a _______ based on a percentage of their sales.

81. Sustainability reporting is ______________ for american companies:

82. The _____ contains all the executive orders created by the president.

83. The ________ budget is the only budget stated only in units, not dollars.

84. The manufacturing sector ________.

85. The standard & poor's 500 is __________ weighted index.

86. When bonds are retired at maturity ________.

87. When demand is elastic, a price increase will __________ total revenues.

88. ________ = cash on hand + cash receipts - cash disbursement.

89. The exclusion of implied warranties in general states that _____.

90. In a zero-sum game, the overall return actually becomes ____ if transaction costs are included.

91. One of the best techniques for determining current network capacities is creating a ____.

92. Soc 2 and soc 3 reports both address primarily ________-related controls.

93. The number of newspapers sold on may 30 would be kept in a ________ field.

94. The role of the board of directors in an organization is to _____.

95. One of the key enhancements in ____ is energy efficiency.

96. The primary difference between soc 2 and soc 3 reports is ________.

97. An advertisement that emphasizes crash test ratings appeals to the audience's desire for _____.

98. A recent gallup study reported that firms with top engagement scores had _____ higher productivity.

99. A reference value involves comparing the costs and benefits of __________.

100. A tax adjustment must be made in determining the cost of ________.

101. Lean manufacturing ___________ productivity.

102. Molding and sanding each unit of product would most likely be classified as a ________ cost.

103. The proportion of assets that are financed with debt can be calculated using the ________ ratio.

104. The ratio of cash to monthly cash expenses can be used to _____.

105. _____ involves reducing the number of employees to cut costs.

106. A computer program that imitates human thinking is a(n) ________.

107. A consultation with a world-famous surgeon is an example of a(n) ________ service.

108. A disadvantage of using ________ as an advertising medium is their short life span.

109. A high rate of employee turnover indicates that ________.

110. An organization with a low-commitment approach is likely to _______________________.

111. ________ represents a debt owed for renting a building currently.

112. __________ pricing tactics lower the price of a product below the store's cost.

113. The distribution of a stock dividend ________.

114. The clothing and accessories at new fashion stores, inc. are an example of ________ assets.