Free Accounting MCQs Mock Test Online with Answers

Q1 : A push through system, according to which goods are manufactured for finished inventory solely, on the basis of forecasted demand can be classified as ___________?

A: in-time production B: materials requirement planning C: on-time production D: pull strategy of production

Q2 : Discount received is a/an:

A: Asset B: Expense C: Liability D: Revenue

Q3 : The difference of current assets and the working capital is equal to __________?

A: current liabilities B: long-term liabilities C: residual assets value D: net residual income

Q4 : Modern system of book keeping is called______________?

A: Double entry system B: American system C: Single entry system D: Italic system

Q5 : If the cost per unit is $70 and the total number of units manufactured in company are 6000, then the total manufacturing cost would be _____________?

A: $240,000.00 B: $320,000 C: $210,000 D: $420,000

Q6 : A unit cost calculated in costing system, by assigning total costs incurred to many similar units is categorized as _________?

A: accounting period costing system B: process costing system C: job costing system D: none of above

Q7 : In process costing method, when the work done in current accounting period, and beginning inventory before current accounting period, is classified as _________?

A: partial inventory costing method B: current period inventory method C: Last-in, first-out method D: First-in, first-out method

Q8 : In management accounting, an emphasis and focus must be __________?

A: future oriented B: past oriented C: past oriented D: communication oriented

Q9 : In value chain analysis, the delivery of services or products to end customers is classified as _____________?

A: resource research B: market research C: utilization D: distribution

Q10 : The cash receipts are added in to beginning cash balance to calculate __________?

A: total goods manufactured B: total cash available C: total revenue D: total goods sold

Q11 : If an actual manufacturing overhead costs is $485000 and actual total quantity of cost allocation base is 4500 labor hours, then the overhead rate would be _____________?

A: 109.87 B: $107.78 C: $106.56 D: $104.34

Q12 : If the budgeted total direct labor hours are 3800 and budgeted direct labor cost is $480000, then the budgeted direct labor cost rate will be ___________?

A: $126.32 per labor hour B: $128.32 per labor hour C: $130 per labor hour D: $132 per labor hour

Q13 : A document which consists information about labor time usage, for specific job in a specific department, is known as __________?

A: selling time record B: labor time record C: buying time record D: direct time record

Q14 : The costs associated with storage of finished goods such as spoilage, obsolescence and insurance of goods are classified as ___________?

A: carrying costs B: purchasing costs C: stock-out costs D: ordering costs

Q15 : An investment is multiplied to required rate of return, to calculate: _____________?

A: congruent cost of investment B: transfer cost of investment C: operating cost of investment D: imputed cost of investment

Q16 : A group of individual indirect cost item is defined as ___________?

A: direct pool B: cost pool C: indirect pool D: item pool

Q17 : If an actual indirect cost incurred is $25000 and the indirect cost allocated is $23000, then the over allocated indirect cost would be ________?

A: $48,000 B: −$2000 C: $2,000 D: −$48000

Q18 : The second step in processing costing system is to ___________?

A: summarize total costs B: compute cost for each equivalent unit C: summarize flow of output D: compute output in units

Q19 : If the budgeted annual indirect cost is $85000 and budgeted annual quantity of cost allocation base is $7500, then budgeted indirect cost rate would be __________?

A: 112.34 per piece B: 113.34 per piece C: 111.34 per piece D: 110.34 per piece

Q20 : If the cost incurred for work in process inventory is $350000 and total equivalent units completed till date are 3500, then weighted average cost will be __________?

A: $10 B: $100 C: $1,000 D: $1,200

Q21 : The non-financial and financial aspects of the plan by the company management, is classified as ___________?

A: complexity B: process C: budget D: batching

Q22 : An example of rework is ____________?

A: short lengths from wood work B: defective aluminum cans recycled by manufacturer C: detection of defective pieces before shipment D: none of above

Q23 : The costing system, which classify cost into cost categories in a way when an expense is incurred in the process is called ____________?

A: conversion expense costing system B: inventory costing system C: process costing system D: job costing system

Q24 : Current assets are subtracted from current liabilities to calculate: ____________?

A: opportunity cost of capital B: working capital C: total long term assets D: weighted average cost of capital

Q25 : Cash discount is provided on _______________?

A: Purchases B: Prompt payment C: Sales D: Sales return

Q26 : If the beginning work in process equivalent units are 2500 units, work done in current period equivalent units are 3800 units and units completed in current period are 4000, then ending work in process equivalent units will be ___________?

A: 1800 units B: 2300 units C: 10300 units D: 1500 units

Q27 : An accounting approach, in which the expected benefits exceed the expected cost is classified as ___________?

A: benefit approach B: cost approach C: cost-benefit approach D: accounting approach

Q28 : The process of assigning the direct or indirect cost to any cost object is known as ____________?

A: cost assignment B: cost expectation C: event assignment D: probability assignment

Q29 : The required rate of return, is multiplied per unit cost of purchased units to calculate __________?

A: irrelevant inventory carrying costs B: relevant opportunity cost of capital C: relevant purchase order costs D: relevant inventory carrying costs

Q30 : If the budgeted annual indirect cost is $60000, budgeted annual quantity of cost allocation base is $3600, then budgeted indirect cost rate will be __________?

A: 15.67 per piece B: 16.67 per piece C: 14.67 per piece D: 13.67 per piece

Q31 : Which one of the following is an example of spoilage?

A: short lengths from wood work B: defective aluminum cans recycled by manufacturer C: detection of defective pieces before shipment D: all of above

Q32 : The budgeted total direct labor cost is divided with budgeted total direct labor, to calculate ___________?

A: budgeted indirect labor cost rate B: expected direct labor cost rate C: budgeted direct labor cost rate D: expected indirect labor cost rate

Q33 : The cash management, investments, long and short term financing are included in ___________?

A: proprietorship B: functional line C: treasury D: controllership

Q34 : The human resource management, IT management and management accountants are categorized under ______________?

A: marketing management B: production management C: staff management D: line management

Q35 : 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 __________?

A: $142,020 B: $172,020 C: $162,020 D: $152,020

Q36 : If the operating income is $5650000 and the revenue is $68558000, then the return on sales will be ___________?

A: 8.24% B: 7.24% C: 9.24% D: 10.24%

Q37 : The degree to which the freedom is given to lower level managers for decision making is classified as ___________?

A: decentralization B: centralization C: autonomy D: congruency

Q38 : The procedure of assigning the direct cost to any cost abject is classified as ____________? 0

A: sales allocation B: cost tracing C: cost allocation D: sales tracing

Q39 : The excess of current assets over current liabilities is called:

A: Working Capital B: Circulating capital C: Fixed capital D: Trading capital

Q40 : The focus on budget cost of all the activities necessary to sell and produce market offerings is known as _________?

A: cost based budgeting B: activity based budgeting C: production based budgeting D: raw material budgeting

Q41 : The term which describes the assigning of indirect cost, to any cost object is classified as ___________?

A: cost allocation B: sales tracing C: sales allocation D: sales allocation

Q42 : The means of collecting and using information, to coordinate decision and planning through an organization are termed as _____________?

A: customer control system B: business control system C: financial control system D: management control systems

Q43 : If the relevant opportunity cost of capital is $2950 and the relevant carrying cost of inventory is $6700, then the relevant incremental cost will be _____________?

A: $9,650 B: $2,350 C: $3,750 D: $2,750

Q44 : In financial accounting, the investors, banks, suppliers and government agencies are classified as _____________?

A: external parties B: internal parties C: environmental parties D: transactional parties

Q45 : The document, which contains the information about the used material sequence, detail and quantity of raw material is classified as __________?

A: bill of materials B: bill of sequence C: bill of detail D: bill of raw materials

Q46 : The budgeted annual indirect costs are divided to budgeted annual quantity of cost allocation base, to calculate ___________?

A: expected indirect cost rate B: expected direct cost rate C: budgeted indirect cost rate D: budgeted direct cost rate

Q47 : An economic value added method is specific type of method to calculate _____________?

A: net income B: nominal income C: residual income D: residual investment

Q48 : Marketing, production and management of distribution comes under the category of ___________?

A: staff management B: line management C: marketing management D: production management

Q49 : The continuous budget is also known as ________?

A: rolling budget B: pin budget C: specific budget D: past budget

Q50 : The companies in the industry that purchase the finished goods, and further sell the products into the market are classified as ______________?

A: service sector companies B: raw material companies C: manufacturing sector companies D: merchandising sector companies

Q51 : The time that a company takes to create and produce a new product is classified as _________?

A: management factor B: time factor C: customer factor D: chain factor

Q52 : A desire of an individual to give good performance for self-satisfaction is known as ___________? 0

A: intrinsic motivation B: extrinsic motivation C: monetary motivation D: bounded motivation

Q53 : An average unit cost, applicable to each similar produced unit is classified as __________?

A: per unit cost B: per post cost C: per price cost D: application cost

Q54 : Goods Return by the customer are termed as :

A: Purchase return B: Customer return C: Sales return D: Inventory return

Q55 : The systematic flow of services, goods or information from the buying material for product delivery to the customers is known as __________?

A: supply chain B: value chain C: material flow chain D: manufacturing flow chain

Q56 : The concession received on the price of defective goods is called:

A: Discount B: Cash discount C: Allowance D: Trading discount

Q57 : The maintenance of accounts in a systematic way is called__________?

A: Accounting B: Reading C: Book Keeping D: Auditing

Q58 : In normal costing, the budgeted rate is multiplied to an actual quantity, which have been used as the allocation base to calculate ___________?

A: budget overhead applied B: manufacturing overhead applied C: labor overhead applied D: none of above

Q59 : The machine budgeted time standards are set too tight, is the possible cause for ____________?

A: priced budget B: exceeding budget C: fixed budget D: variable budget

Q60 : In an accounting system, the document which supports journal entries is classified as _____________?

A: cost document B: priced document C: source document D: direct document

Q61 : If the budgeted indirect cost arte is $115 and the budgeted cost allocation base is $830 per hour, then the annual indirect cost (budgeted) will be ___________?

A: $93,450 B: $94,560 C: $96,450 D: $95,450

Q62 : The cost computed by dividing total manufacturing cost and total manufactured units is known as ____________?

A: per unit cost B: total cost C: total indirect cost D: total effective cost

Q63 : The aspects of accounting for scrap includes __________?

A: physical tracking B: non-inventoriable costing C: inventory costing D: both a and c

Q64 : If the budgeted indirect cost is $225 and the budgeted cost allocation base is $750 per hour, then the annual indirect cost (budgeted) would be __________?

A: $168,750 B: $148,570 C: $186,750 D: $125,680

Q65 : An allocation approach, in which all the overhead entries are restated using actual cost rates in place of budgeted rates is called ___________?

A: unadjusted budget rate approach B: adjusted allocation rate approach C: unadjusted allocation rate approach D: adjusted budget rate approach

Q66 : A situation when groups and individuals work together for achieving a particular goal can be classified as _________?

A: motivation B: goal congruence C: effort D: autonomy

Q67 : The flexible budget amount is added in to variable overhead flexible budget variance to calculate ____________?

A: manufacturing costs incurred B: variable costs incurred C: fixed costs incurred D: actual costs incurred

Q68 : If the budgeted direct labor hours are 4550 and direct labor cost rate is $600 per labor hour then, total direct labor cost would be _____________?

A: $4,730,000 B: $3,730,000 C: $2,730,000 D: $1,730,000

Q69 : The maximum freedom for managers and minimum constraints are the main features of ___________?

A: total autonomy B: total centralization C: total decentralization D: total congruency

Q70 : The second step in developing operating budget is to ___________?

A: plan coordination B: plan accounts C: obtain information D: coverage information

Q71 : The variable overhead flexible budget variance is added to flexible budget amount to calculate _____________?

A: actual cost incurred B: fixed cost incurred C: variable cost incurred D: manufacturing cost incurred

Q72 : In value chain analysis, the selling and promotion to prospective customers is classified as ___________?

A: researching B: marketing C: acquaintance D: usefulness

Q73 : The dysfunctional decision making is also known as ___________?

A: dysfunctional decision making B: congruent decision making C: incongruent decision making D: both a and c

Q74 : If the beginning work in process equivalent units are 2500 units, work done in current period equivalent units are 3800 units and ending work in process equivalent units are 5000, then complete equivalent units in current period are _____________?

A: 1500 units B: 1300 units C: 1500 units D: 1800 units

Q75 : The type of accounting which measures, reports and analysis of the non-financial and financial information to help in decision making is called _____________?

A: financial accounting B: management accounting C: cost accounting D: decision accounting

Q76 : The system in an organization, which defines behavior standards and code of conduct is known as ___________?

A: interactive control system B: belief system C: boundary system D: diagnostic control system

Q77 : In management accounting, an emphasis and focus must be __________?

A: future oriented B: past oriented C: communication oriented D: bank oriented

Q78 : The relevant incremental costs are added into the relevant opportunity cost of capital to calculate ___________?

A: purchase order costs B: relevant inventory carrying costs C: irrelevant inventory carrying costs D: relevant ordering costs

Q79 : The companies that buy the raw materials and convert them into the finished goods for customers are a part of ____________?

A: manufacturing sector companies B: merchandising sector companies C: service sector companies D: raw material companies

Q80 : A desire to achieve a particular goal with pursuit of that goal is called _____________?

A: motivation B: goal congruence C: effort D: autonomy

Q81 : If the beginning work in process inventory units are 2600, units started are 9000, ending work in process units are 2300 and the completed good units are 8000 then total spoilage will be ____________?

A: 1200 units B: 990 units C: 1300 units D: 1000 units

Q82 : In a normal accounting period, the allocated amount of indirect cost is $2000 and the actual amount is $2200, it classified as __________?

A: over allocated budget B: under allocated budget C: under allocated indirect cost D: over allocated direct cost

Q83 : An availability of financial information, to oversee operations and system of accounting is known as ____________?

A: manager ship B: controllership C: proprietorship D: functional line

Q84 : The cash sales, accounts receivables and rental receipts all are known as ___________?

A: cash receipts B: budget receipts C: goods manufactured D: total goods sold

Q85 : The costing technique, which traces direct costs by multiplying price rate for producing actual outputs is known as ______________? 0

A: constant costing B: standard costing C: unit costing D: batch costing

Q86 : The profit forgone by capital investment in inventory rather than investment of capital to somewhere else is classified as ____________?

A: relevant purchase order costs B: relevant inventory carrying costs C: irrelevant inventory carrying costs D: relevant opportunity cost of capital

Q87 : The flow of goods and services, from the start of gathering materials until the delivery of products, is known as __________?

A: flow chart analysis B: supply chain analysis C: resource chain analysis D: acquiring analysis

Q88 : An organizational practice, according to which the decision making freedom is available to lower level managers is known as _____________?

A: decentralization B: centralization C: autonomy of effort D: congruency

Q89 : The last step in developing operating budget is ____________?

A: implementing income B: implementing the decision C: efficient implementation D: effective implementation

Q90 : The type of accounting which reports to external parties of the organization is known as ____________?

A: cost accounting B: decision accounting C: financial accounting D: management accounting

Q91 : The decision making methods, used for subunits of company are highly interdependent on each other is called _____________?

A: incongruent decision making B: functional decision making C: congruent decision making D: duplication decision making

Q92 : If the budgeted cost in indirect cost pool is $144500 and total quantity of cost allocation base is $165500, then the budgeted indirect cost rate will be __________?

A: 67.30% B: 87.31% C: 55.50% D: 45.50%

Q93 : An act of making sure, that all the employees must understand the goals is classified as ___________?

A: coordination B: communication C: annual profit plan D: budgeting

Q94 : If the flexible budget amount is $26000 and fixed overhead flexible budget variance is $12500, then actual incurred cost would be ____________?

A: $38,500 B: $48,500 C: $58,500 D: $13,500

Q95 : The type of accounting, which reports financial and non-financial data about the cost of material and acquiring of resources is classified as ____________?

A: material accounting B: cost accounting C: supplies accounting D: business accounting

Q96 : The manufacturing overhead cost allocated to individual jobs is classified as ___________?

A: manufacturing overhead allocated B: cost overhead applied C: manufacturing overhead applied D: both A and C

Q97 : The person to whom goods are sold on credit is called___________?

A: Buyer B: Seller C: Debtor D: Creditor

Q98 : Companies that are part of an industry of ‘service providers’ are ____________?

A: manufacturing sector companies B: merchandising sector companies C: service sector companies D: raw material companies

Q99 : The first step in process costing system is to ___________?

A: summarize flow of output B: compute output in units C: summarize total costs D: compute cost for each equivalent unit

Q100 : The manufacturing sector companies include ____________?

A: distribution companies B: textile companies C: retailing companies D: internet service providers

Free Accounting MCQs Mock Test Online with Answers

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