Business Accounting MCQs (Chapterwise Multiple Choice Questions)

A shortened form of the ledger is called a ________.

Trial balance

Balance sheet

Chart of accounts

T-account

Answer & Explanation

Correct Answer: T-account

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

The principal plus interest

The principal minus interest

The interest amount only

The principal amount only

Answer & Explanation

Correct Answer: The principal plus interest

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The standard quantity per unit defines the ________.

Amount of direct materials that should be used for each unit of finished product including an

Allowance for normal inefficiencies,

Such as scrap and spoilage.

All of these

Answer & Explanation

Correct Answer: All of these

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

Fixed supervision costs that can be eliminated

Variable marketing costs per unit of product sold

Cost of goods sold

Future administrative costs that will continue

Answer & Explanation

Correct Answer: Future administrative costs that will continue

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

General partner

Limited partner

Sole proprietor

Nominal partner

Stockbroker

Answer & Explanation

Correct Answer: Limited partner

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

All explanatory variables

Collinear variables

The predicted values

The response variable

Answer & Explanation

Correct Answer: All explanatory variables

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The manufacturing sector ________.

Only variable costs are subtracted to determine gross margin

Fixed overhead costs are subtracted to determine gross margin

Fixed overhead costs are subtracted to determine contribution margin

All operating costs are subtracted to determine contribution margin

Answer & Explanation

Correct Answer: Fixed overhead costs are subtracted to determine gross margin

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Volatility refers to the degree of ________ within an environment.

Support

Instability.

Flexibility.

Resources.

Pressures

Answer & Explanation

Correct Answer: Instability.

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

Inverse

Neutral

Positive

Negative

Answer & Explanation

Correct Answer: Inverse

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

Salaries expense

Factory overhead

Direct materials

Cost of goods sold

Answer & Explanation

Correct Answer: Salaries expense

Note: This Question is unanswered, help us to find answer for this one

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