Accounting Mcqs Practice Test

Question 1

The model which refers possibility for management to conduct sensitivity analysis can be categorized under __________?

Accepted Answer

B. financial planning models

Question 2

The fourth step in development of operating budget is to __________?

Accepted Answer

A. choose alternatives

Question 3

The continuous budget is also known as ________?

Accepted Answer

A. rolling budget

Question 4

The first step in developing an operating budget is to ___________?

Accepted Answer

B. identify the problem

Question 5

The factor which provides hedge to managers in adverse and unexpected circumstances is known as __________?

Accepted Answer

A. budgetary slack

Question 6

The schedule of expected disbursements and cash receipts is considered as __________?

Accepted Answer

B. cash budget

Question 7

The centers such as revenue, cost, investment and profit all are known as ___________?

Accepted Answer

C. responsibility center

Question 8

The cash sales, accounts receivables and rental receipts all are known as ___________?

Accepted Answer

A. cash receipts

Question 9

If the budget sales units are 8000, the ending inventory is 2000 units and the beginning inventory is 3000, then the budget production would be ___________?

Accepted Answer

D. 7000 units

Question 10

The balancing of all aspects of products or services and all the departments in the company are classified as ____________?

Accepted Answer

C. coordination

Question 11

The second step in developing operating budget is to ___________?

Accepted Answer

C. obtain information

Question 12

The budget which specifies an operating and financial plan, usually for a fiscal year or any specific period of time is classified as ___________?

Accepted Answer

D. master budget

Question 13

The what-if technique, which examines changes in results, if original prediction would not be achieved is called _____________?

Accepted Answer

C. sensitivity analysis

Question 14

The master budget includes all the projections of company’s budget and focuses on __________?

Accepted Answer

D. both B and C

Question 15

If the budget sales units are 2000, an ending inventory is 3000 units and the beginning inventory is 1000, then the budget production would be ______________?

Accepted Answer

B. 4000 units

Question 16

The type of accounting, which focuses on whom should be asked for information and whom not, will be categorized as ____________?

Accepted Answer

B. responsibility accounting

Question 17

The mathematical relationships exist between operating and financing activities that affect master budget are called _____________?

Accepted Answer

B. financial planning models

Question 18

The non-financial and financial aspects of the plan by the company management, is classified as ___________?

Accepted Answer

C. budget

Question 19

An act of making sure, that all the employees must understand the goals is classified as ___________?

Accepted Answer

B. communication

Question 20

The type of plan of a company, which quantities the expectations of cash flows, income and financial position is known as ___________?

Accepted Answer

A. budget