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Accounting Mcqs – MCQs
1591 questions. Click to practice.
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1.
Which term is another name for the return on investment?
accrual accounting return rate
accounting return rate
nominal return rate
both A and B
2.
What is the name of the organizational system that sets the limits for acceptable behavior and establishes the code of conduct?
system for interactive control
system based on organizational beliefs
system that defines boundaries
system for diagnostic monitoring
3.
What is the result when you add working capital to current liabilities?
notional assets
leftover assets
current assets
token assets
4.
Which financial metric is determined by multiplying return on sales with investment turnover?
Residual income
Return on investment
Profit margin
Asset turnover
Operating income
5.
What is the term for the set of metrics used to evaluate a company's performance, including residual income, economic value added, and customer satisfaction?
systems for interactive control
core belief frameworks
limit-setting systems
diagnostic control systems
performance feedback loops
6.
Given an after-tax operating profit of $185,000, a weighted average cost of capital (WACC) of 11%, total assets valued at $485,000, and total liabilities amounting to $367,000, what is the Economic Value Added (EVA)?
$142,020
$172,020
$162,020
$152,020
$182,020
7.
Which type of costs are excluded from accounting records but acknowledged in certain circumstances?
consistent costs
imputed costs
running expenses
allocation costs
sunk costs
8.
Given that the current assets amount to $856,000 and the working capital is $654,500, what is the value of the current liabilities?
$501,500
$401,500
$201,500
$301,500
9.
According to the DuPont analysis, which formula is used to determine the return on investment?
return on sales multiplied by investment turnover
return on sales added to investment turnover
return on sales minus investment turnover
investment turnover combined with residual income
10.
When an investment is multiplied by the required rate of return, what is being calculated?
Equivalent cost of the investment
Cost associated with transfer of investment
Operational expenses of the investment
Imputed cost of the investment
11.
In standard costing, which type of costs are allocated by multiplying the standard quantity allowed by the predetermined overhead rates?
adjustable expenses
costs that vary with production
indirect manufacturing expenses
constant expenses
12.
Which category do energy, machine maintenance, indirect materials, and engineering support fall under?
variable overhead expenses
fixed overhead expenses
fixed batch expenses
variable batch expenses
13.
In the process of planning which cost type should a company remove all activities that do not contribute value to its products or services?
variable overhead cost
fixed overhead expenses
fixed batch expenses
variable batch expenses
14.
Given a flexible budget of $40,000 and a variable overhead flexible budget variance of $25,000, what is the amount of the actual costs incurred?
$15,000
$35,000
$65,000
$75,000
15.
What is the term for the budget that shows the variance between the actual quantity used and the quantity originally planned?
budget based on actual costs
variance in a flexible budget
static budget
time-based budget
16.
What is the term used to describe the difference between the actual variable overhead cost incurred and the variable overhead amount in the flexible budget?
variable overhead flexible budget variance
fixed overhead budget variance
flexible overhead cost variance
flexible overhead price variance
variable overhead spending variance
17.
Which of the following is considered a cost allocation base utilized by an operations manager?
machine hours
adjustable hours
hours that vary
constant hours
18.
Which costing method calculates direct costs by applying a predetermined price rate to the actual quantity produced?
fixed costing
standard costing
per unit costing
lot costing
variable costing
19.
To determine ____________, the flexible budget figure is combined with the variable overhead flexible budget variance.
incurred manufacturing expenses
incurred variable expenses
incurred fixed expenses
incurred actual expenses
20.
Depreciation on machinery, wages of plant supervisors, and rental expenses for the plant are classified as which type of cost?
fixed cost per batch
variable cost per batch
variable manufacturing overhead
fixed manufacturing overhead
direct material cost
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