🧪 Business Accounting MCQ Quiz Hub

1. The amount spent by a publishing company to pay for manufacturing its books is called ________.
Cost of goods sold
Operating expenses
Cost of goods purchased
Net loss

2. Under the _____, partnership assets are arranged in a certain order to pay any outstanding debts.
Non-negotiable/notices
Negotiable/defects
Marshaling/debts
Partnering/claims

3. When a business records accrued interest expense on a note payable ________.
Interest Expense is credited
Note Payable is credited
Cash is debited
Interest Payable is credited

4. Because ________ are less liquid for the depositor than ________, they earn higher interest rates.
Money market deposit accounts; time deposits
Checkable deposits; savings accounts
Savings accounts; checkable deposits
Savings accounts; time deposits

5. Bank capital is equal to ________ minus ________.
Total assets; total liabilities.
Total liabilities; total assets.
Total assets; total reserves.
Total liabilities; total borrowings

6. The contribution margin income statement presents ________ below the contribution margin line.
All fixed expenses
Only variable expenses relating to selling and administrative activities
Only fixed expenses relating to selling and admin fees
All variable expenses

7. When a division is operating at capacity, the transfer price should be ________.
A​ market-based transfer price
A​ cost-based transfer price
Based on opportunity cost
The total manufacturing cost

8. With _____, marketers group people by their values, attitudes, personality, and lifestyle.
Demographics
Psychographics
Geodemographics
None of these

9. Set up time is disregarded as an improvement priority under the ____ manufacturing concept.
Ust in Time
Traditional
Both of above
None of these

10. By increasing ________, a manager can increase operating income under absorption costing.
Leased assets
Fixed costs
Variable costs
All of the above

11. Calculating gross pay for hourly workers is an example of ________ decision making.
Structured
Unstructured
Undocumented
Semi-structured

12. Changes in activity have a(n) _________ effect on fixed costs per unit
Inverse
Neutral
Positive
Negative

13. When a company uses the allowance method to measure bad debts, ________.
The Allowance for Bad Debts account balance is added to the balance of the Accounts Receivable account to arrive at the net realizable value
The amount of bad debts expense is estimated at the end of the accounting period
The Allowance for Bad Debts account is debited when the bad debts expense is estimated
The Bad Debts Expense account is debited when an account is written off

14. When discussing weighing schemes for calculating the weighted average cost of capital, ________.
Market value weights are preferred over book value weights and target weights are preferred over historic weights.
Book value weights are preferred over market value weights and target weights are preferred over historic weights.
Book value weights are preferred over market value weights and historic weights are preferred over target weights.
Market value weights are preferred over book value weights and historic weights are preferred over target weights

15. When the sales price per unit decreases, the contribution margin per unit ________.
Increases proportionately
Increases
Remains the same
DECREASES

16. The income statement of a service company will most likely include _______
Salaries expense
Factory overhead
Direct materials
Cost of goods sold

17. When a company pays cash for a long-term investment in bonds, ________.
Equity remains unchanged
Current assets increase
Liabilities increase
Total assets increase

18. ________ includes general management, finance, accounting, legal, and government affairs.
Human resources
Research and development
Firm infrastructure
None of these

19. __________ is the total combined values of all of the company’s customers.
Customer satisfaction
Customer-perceived value
Share of customer
Customer equity

20. A shortened form of the ledger is called a ________.
Trial balance
Balance sheet
Chart of accounts
T-account

21. An entity that buys goods and sells them to customers at a markup is a ________.
Merchandiser
Service provider
Manufacturer
Producer

22. An unfavorable flexible budget variance in operating income might be due to a(n) ________.
Decrease in sales volume
Increase in sales price per unit
Increase in variable cost per unit
Decrease in fixed costs

23. At the maturity of a note payable, a borrower will pay ________.
The principal plus interest
The principal minus interest
The interest amount only
The principal amount only

24. Discounted cash flow methods, such as net present value and internal rate of return, ________.
Focus on the payback period
Use net income amounts rather than cash flows
Consider discounted cash flows
Use simple interest calculations

25. Dividends normally carry a _______ balance and are shown in the ______________.
Debit; Statement of stockholders’ equity.
Debit; Income statement.
Credit; Balance sheet.
Debit; Balance Sheet

26. In multiple regression, plot the residuals against ____ to detect changing variability
All explanatory variables
Collinear variables
The predicted values
The response variable

27. Inventory reduction is a ____ principle.
Lean
Traditional processing
Economic
Just-in-time

28. Payment cards with disposable numbers are known as _____.
Credit cards
Store-branded cards
Single-use cards
Charge cards

29. The commitment concept says that plans should ________.
Extend far enough to meet those commitments made when the plans were developed
Be done for as long a time period as possible
Be done for as short a time period as possible
Not commit to specifically meeting the goals made when the plans were developed

30. The current portion of long-term notes payable is ________.
The amount of principal that will be paid within five years
Included with the long-term liabilities on the balance sheet
Recorded an adjusting entry
Reclassified as current for reporting purposes on the balance sheet

31. The direct materials budget is prepared using information from the ________ budget.
Cash
Master
Capital expenditure
Production

32. The ima?s ethical standards include all of the following except ________.
Honesty, , ,
Credibility
Confidence
Competence

33. The predetermined overhead allocation rate is calculated by dividing ________.
The actual overhead costs by actual amount of the cost driver or allocation base
The total estimated overhead costs by total number of days in a year
The estimated amount of cost driver by actual total overhead costs
The estimated overhead costs by total estimated quantity of the overhead allocation base

34. When preparing the cost of goods sold budget, ________.
Ignore balances in Finished Goods Inventory
Start by calculating the projected cost to produce each unit
Ignore the inventory costing method
Multiply units produced by the total projected cost per unit

35. _____ are people who are prompted to apply for a job by someone within the organization.
Direct applicants
Internal employees
Boomerang employees
Referrals

36. The amount of net income is transferred from ________ to ________.
The balance sheet; the income statement
The income statement; the statement of owner's equity
The balance sheet; the statement of cash flows
The income statement; the statement of expenditures

37. ____ manufacturing philosophy emphasizes quality and zero defects.
Lean
Traditional
Chinese
Zero-Based

38. All fixed costs are listed ________ on a contribution margin income statement.
Above the gross profit line
Below the gross profit line
Above the contribution margin line
Below the contribution margin line

39. Given a price of p2, this firm in a purely competitive industry should ___________
Produce Q1
Produce Q3 with a minimum loss
Produce Q5 with an economic profit
Shut down to minimize the loss at the fixed cost level

40. The ________ capital budgeting method uses accrual accounting income.
ARR
Payback
NPV
IRR

41. Under variable costing, a unit of a product includes ________.
Direct material, direct labor, and manufacturing overhead
Direct material, direct labor, and variable overhead cost
Direct material, direct labor, and fixed manufacturing overhead
Direct material, direct labor, and all variable manufacturing overhead

42. Reduction in production cost results in ________.
Decreased profitability
Lower shareholder value
Increased profitability
Increased competition

43. The entry to record the purchase of direct materials on account would include a ________.
Debit to the Raw Materials Inventory account.
Debit to the Work-in-Process Inventory account.
Credit to the Work-in-Process Inventory account.
Credit to the Raw Materials Inventory account

44. The interest rate that investors demand to earn for loaning their money is known as the ________.
Yield to maturity
Coupon rate
Differential rate
Market interest rate

45. Total revenue divided by ________ = units sold.
Cost
Profit
Selling price
Total operating costs

46. Underallocated overhead occurs when ________.
Actual overhead costs are less than allocated overhead costs
Estimated overhead costs are greater than budgeted overhead costs
Estimated overhead costs are greater than actual overhead costs
Allocated overhead costs are less than actual overhead costs

47. A cost center responsibility report ________.
Typically focuses on the flexible budget variance
Includes depreciation expense
Is the same as a performance report
Shows all costs incurred by the department

48. In a negative message regarding a transaction, the salutation should be _____.
Addressed To Whom It May Concern
Dear Sir or Madam
Personalized to the recipient
Dear Customer

49. When 1,000 shares of $3 stated value common stock is issued at $18 per share, ________.
Common Stock - $3 Stated is credited for $18,000
The difference between the issue price and the stated value is credited to Paid-In Capital in Excess of Stated
The accounting is exactly the same as the accounting for par value stock
The account titled Paid-In Capital in Excess of Stated is used to record the issue price of the stock

50. All of the following are assets except ________.
Inventory
Patents
Cash
Bank loans

51. The revenue recognition principle guides accountants in ________
Ensuring expenses are deducted from revenues
Ensuring only revenues received in cash are recorded
Determining when to record expenses
Determining when to record revenues

52. _______ relate to the effort spent in making sales.
Primary data
Observational data
Marketing outcome data
Marketing input data

53. When deciding whether to discontinue a segment of a business, relevant costs include ________.
Fixed supervision costs that can be eliminated
Variable marketing costs per unit of product sold
Cost of goods sold
Future administrative costs that will continue

54. Activity drivers can be classified as either ____ or ____.
Unit-level; nonunit-level
Inputs; outputs
Right; wrong
Exact; inexact

55. At the internal rate of return, the present value of net cash inflows will equal the ________.
Average operating income
Initial cost of the investment
Profit from the project
Residual value

56. A short-term creditor is primarily interested in the __________ of the borrower.
Liquidity
Profitability
Consistency
Solvency

57. The cost of goods sold is subtracted from sales to arrive at _____.
Gross profit. .
Net sales
Fees earned.
Operating income

58. ________ are a company's decision makers.
Managers
Employees
Owners
none of these

59. Long-term investments are made by the investment center manager for the purpose of ________.
Increasing profits
Decreasing profits
Increasing interest expense
Decreasing plant assets

60. Volatility refers to the degree of ________ within an environment.
Support
Instability
Flexibility
Resources

61. ________ is pay stated as a percentage of a sale amount.
Salary
Wage
Commission
Bonus

62. A ____ invests money in the business but has no management responsibility.
General partner
Limited partner
Sole proprietor
Nominal partner

63. A _____ cost occurs when the amount used varies based on the volume of service provided.
Direct
Indirect
Fixed
Variable

64. ____ define(s) the specific types of people the advertiser wants to reach.
Audience objectives
Media objectives
Distribution objectives
Continuity objectives

65. _____ are numbers or letters assigned in a specific order.
Sequence
Category
Significant digit
Derivation

66. When a company receives cash from customers before earning the revenue, _________ will be credited.
Accounts Receivable
Sales Tax Payable
Accounts Payable
Unearned Revenue

67. ____ manufacturing deals with several suppliers in hopes of finding the best price.
Traditional
Just - in - time
Economic
Productivity

68. A correlation coefficient of _____ provides the greatest possible risk reduction to the firm.
-1
+1
+0.5
None of these

69. If a company retires preferred stock, ________.
Total​stockholders' equity will increase
The number of outstanding shares will increase
The company can record a gain or loss on retirement of stock T
otal​ stockholders' equity will decrease

70. The ________ capital budgeting model considers both profitability and the time value of money.
Payback
Accounting rate of return
Net present value
Both a and c are correct

71. Disaster recovery typically looks at the __________.
Long run
Continuation of the business
Overall business plan
Short term

72. In the accompanying figure, the book rep table displays in ____.
Layout view
Structure view
Design view
Table view

73. Proponents of the emh typically advocate __________.
Buying individual stocks on margin and trading frequently.
Investing in hedge funds.
A passive investment strategy.
Buying individual stocks on margin and trading frequently and investing in hedge funds