Accounting Mcqs Practice Test

Question 1

The return on investment is also known as _____________?

Accepted Answer

D. both a and b

Question 2

The system in an organization, which defines behavior standards and code of conduct is known as ___________?

Accepted Answer

C. boundary system

Question 3

The sum of working capital and current liabilities is equal to _____________?

Accepted Answer

C. current assets

Question 4

The return on sales is multiplied to investment turnover to calculate ___________?

Accepted Answer

B. return on investment

Question 5

The measures that analyze the performance of a company, such as residual income, economic value added and customer satisfaction are collectively called ____________?

Accepted Answer

D. diagnostic control systems

Question 6

If after-tax operating income is $185000, weighted average cost of capital is 11%, total assets are $485000 and total liabilities are $367000, then economic value added would be __________?

Accepted Answer

B. $172,020

Question 7

The costs that are not incorporated in accounting records, but are recognized in different situations are classified as ___________?

Accepted Answer

B. imputed costs

Question 8

If the current assets are $856000 and the working capital is $654500, then the current liabilities will be ___________?

Accepted Answer

C. $201,500

Question 9

The formula to calculate return on investment, according to profitability analysis in DuPont method is ____________?

Accepted Answer

A. return on sales * investment turnover

Question 10

An investment is multiplied to required rate of return, to calculate: _____________?

Accepted Answer

D. imputed cost of investment

Question 11

In the standard costing, the standard quantity allocation is multiplied to standard overhead rates for allocating __________?

Accepted Answer

C. overhead costs

Question 12

An energy, machine maintenance, indirect materials and engineering support are considered as ____________?

Accepted Answer

A. variable overhead cost

Question 13

A company must eliminate all those activities that do not add value to all the products or services in planning of ___________?

Accepted Answer

A. variable overhead cost

Question 14

If the flexible budget amount is $40000 and variable overhead flexible budget variance is $25000, then actual costs incur will be ____________?

Accepted Answer

C. $65,000

Question 15

The budget, which highlights the difference between actual quantity and budgeted quantity is termed as _____________?

Accepted Answer

B. flexible budget variance

Question 16

The difference between actual variable overhead cost and flexible budget variable overhead amount is termed as __________?

Accepted Answer

A. overhead flexible budget variance

Question 17

The cost allocation base used by an operating manager is classified as ____________?

Accepted Answer

A. machine hours

Question 18

The costing technique, which traces direct costs by multiplying price rate for producing actual outputs is known as ______________?

Accepted Answer

B. standard costing

Question 19

The flexible budget amount is added in to variable overhead flexible budget variance to calculate ____________?

Accepted Answer

D. actual costs incurred

Question 20

The depreciation on plant equipment, salaries of plant managers and plant leasing costs are considered a _____________?

Accepted Answer

D. fixed overhead cost