Please Select a Company.
Please Select a Company.
Accounting MCQ Questions | Interview Quick

Accounting MCQ With Answers

Last updated on Jan 27, 2023

Share with:

Finance is the study and discipline of money, currency and capital assets. It is related with, but not synonymous with economics, the study of production, distribution, and consumption of money, assets, goods and services. Finance activities take place in financial systems at various scopes, thus the field can be roughly divided into personal, corporate, and public finance.[a] In a financial system, assets are bought, sold, or traded as financial instruments, such as currencies, loans, bonds, shares, stocks, options, futures, etc. Assets can also be banked, invested, and insured to maximize value and minimize loss. In practice, risks are always present in any financial action and entities.

A broad range of subfields within finance exist due to its wide scope. Asset, money, risk and investment management aim to maximize value and minimize volatility. Financial analysis is viability, stability, and profitability assessment of an action or entity. In some cases, theories in finance can be tested using the scientific method, covered by experimental finance. Some fields are multidisciplinary, such as mathematical finance, financial law, financial economics, financial engineering and financial technology. These fields are the foundation of business and accounting.

As above, the financial system consists of the flows of capital that take place between individuals and households (personal finance), governments (public finance), and businesses (corporate finance). "Finance" thus studies the process of channeling money from savers and investors to entities that need it. Savers and investors have money available which could earn interest or dividends if put to productive use. Individuals, companies and governments must obtain money from some external source, such as loans or credit, when they lack sufficient funds to operate.

Accounting MCQ

1. Which statement is not an advantage of robotic process automation (RPA)?

2. What effect does a contra asset account have on a balance sheet?

3. Internal controls may be preventative, detective, corrective, or directive. Which is a detective control?

4. On March 15, a business receives an invoice from the power company for utilities used in February. The retailer pays the invoice on April 1. The business uses accrual-based accounting. Which month should the business recognize the expense?

5. Which choice is a general guideline for adequate separation of duties to prevent both fraud and error?

6. What does the cost of a unit of product under absorption costing method consist of?

7. Which answer best describes accruals and deferrals?

8. What do you call a situation where more than one person collaborates to circumvent existing internal controls?

9. Which is not an example of an internal control activity?

10. . Which budgeting approach request justification of all expenditures?

11. What does the discontinued operations section of the income statement refer to?

12. How are the three financial statements (income statement, balance sheet, and cash flow statement) linked?

13. Which is not one of the four perspectives of the balanced scorecard?

14. What would be deducted from the balance per books when doing a bank reconciliation?

15. What situation could be the results of the three retails store employees sharing the same cash register?

16. A firm has $1,000 in debt and $3,000 in assets. What is the firm's debt-to-equity ratio?

17. An external auditor is required to be independent when performing

18. Proper segregation of functional responsibilities calls for separation of

19. What does the degree of operating leverage represent?

20. Which characteristic would concern an auditor about the risk of material misstatements arising from fraudulent financial reporting?

21. An employee who makes a sale, ships the goods, and bills the customer violates which control activity?

22. What trait distinguishes auditors from accountants?

23. What is the purpose of an operational audit?

24. Which statement is false?

25. Which choice is not a component of internal control?

26. What is the difference between the cost of an asset and the accumulated depreciation for that asset?

27. A company budgeted 1,200 washers, but only 1,000 are produced. It costs $10 to produce a widget. What is the materials variance?

28. Who does an audit committee report to?

29. A business purchased office equipment by issuing a one-year note payable. The entire amount of the note is due at the end of one year. How do you record this transaction?

30. Which section of a financial annual report describes the corporation's accounting methods?

31. What does "independence" mean in auditing?

32. What would cause a bank to increase a depositor's account?

33. Which statement about current liabilities is true?

34. How do variable costs and fixed costs act within the relevant range?

35. Which answer can be defined as an investment center's contribution margin less the fixed costs that are traceable to the investment center?

36. If an auditor is expected to detect the overstatement of sales, what should the auditor trace transactions from?

37. When independent auditors are able to maintain their actual independence, it is referred to as independence in ____.

38. When applying a cost-volume-profit analysis (CVP), certain assumptions must be respected. Which answer is not one of these assumptions?

39. Which statement about a perpetual inventory system is true?

40. Which type of business would be most likely to use a job order costing system?

41. Assigning indirect costs to specific jobs is completed by _.

42. Which is an assurance engagement?

43. What is conversion cost the sum of?

44. Under a perpetual inventory system, merchandise is purchased on account. What is the correct journal entry for this purchase?

45. Which is not a task usually associated with activity-based costing (ABC)?

46. What is true when the units in ending inventory increase during the year?

47. When independent auditors are able to maintain their actual independence, itis referred to as independence in__.

48. What is the formal method of analysis applied by management to identify appropriate cost drivers and effects on the costs of production?

49. When do you expect to apply job costing over process costing?

50. Robinson Hotels is trying to predict its utility costs. It has five years of data, including monthly utility cost, monthly occupancy rates, and average monthly temperature. What tool or technique can Robinson Hotels use to predict or estimate its future utility costs?

51. What type of cost changes in proportion to a company's production volume?

52. What do you call the benefit sacrificed when one option is chosen over another?

53. Permanent accounts are on what financial statement?

54. The cost of alternative X is $25,000 and the cost of alternative Y is $20,000. What do you call the $5,000 cost difference?

55. Which cost items would be classified as an internal failure cost on a quality costs report?

56. What type of audit evidence would most likely be used to verify the existence of fixed assets?

57. What cost is easily traceable to a cost object?

58. Which value chain element is associated with the cost of staffing a customer support phone line?

59. Which is the appropriate term for an incurred cost that cannot be changed by any decision?

Our Brands by Nishtya Infotech Private Limited:

Log in to Jobaaj

Login to manage your account

Please enter a valid email address.
Forgot Password?
Please enter a valid password.
OR

Don't have an account yet? Sign up as

Jobseeker
Employer