Accounting MCQ Questions Answers

1. Elements of tone include _____.

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

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

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

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

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

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

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

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

10. Evaluated receipts settlement is ________.

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

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

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

14. Agency costs are likely to arise when _____.

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

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

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

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

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

20. The sales discounts forfeited account ________.

21. The revenue recognition principle guides accountants in ________.

22. The cash basis of accounting ignores ________.

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

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

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

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

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

28. Who does an audit committee report to?

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

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

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

32. What is the purpose of an operational audit?

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

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

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

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

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

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

39. Which budgeting approach request justification of all expenditures?

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

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

42. Which answer best describes accruals and deferrals?

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

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

45. 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?

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

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

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