These Accounting multiple-choice questions and their answers will help you strengthen your grip on the subject of Accounting. You can prepare for an upcoming exam or job interview with these 50 Accounting MCQs.
So scroll down and start answering.
A. Bots are more creative than humans
B. Bots do no need to take time off
C. Bots improve efficiency
D. Bots can eliminate human errors
A. A contra asset is not an accounting term
B. A contra asset has a credit balance and therefore a negative effect on total assets
C. A contra asset with a positive balance will increase overall liabilities
D. A contra asset has a debit balance and therefore a positive effect on total assets
A. Data backups
B. Physical inventory check
C. Employee background checks
D. Physical locks on inventory warehouse
A. April
B. March
C. No record required
D. February
A. A person who has control over an asset should not safeguard that asset.
B. A person who has temporary or permanent custody of an asset should not account for that asset.
C. A person who has record-keeping responsibility should not make journal entries.
D. A person who has operational responsibility should not authorize transactions for the area.
A. Direct materials, direct and indirect labor, and fixed overhead
B. Direct materials, indirect labor, and variable and fixed overhead
C. Direct materials, direct labor, and both variable and fixed overhead
D. Direct materials, direct and indirect labor, and variable overhead
A. Accruals are past cash receipts and payments, while deferrals are expected future cash receipts and payments.
B. Both accruals and deferrals are both expected future cash receipts and payments.
C. Accruals are expected future cash receipts and payments, while deferrals are past cash receipts and payments.
D. Both accruals and deferrals are not expected past cash receipts and payments.
A. Assigned responsibility
B. Segregation of duties
C. Fraud prevention
D. Collusion
A. Review of manufacturing plan
B. Segregation of duties
C. Bank reconciliations
D. Approval process
A. Zero-based budgeting
B. Master budgeting
C. Rolling budgets
D. Bottom-up budgeting
A. Disposal of a major product line or major geographical area of operations
B. Sale of unused or obsolete equipment and discontinued inventory
C. A plant shutdown or decommissioning of a facility
D. Net income or loss for products completed and sold
A. Only the assets are reflected in the cash flow statement, and the net income expenses correlate with the liabilities.
B. The net income goes to retained earnings, but the cash flow remains independent.
C. The gross profit goes to retained earning, and the shareholder equity total is added to the cash flow statement
D. The net income goes to the retained earning and to the cash flow statement
A. Internal business
B. Learning and growth
C. Quantitative
D. Customer
A. Deposits in transit
B. Bank service fees
C. Outstating checks
D. Electronic fund transfers/payments
A. A thorough internal control activity
B. A violation of assignment of responsibility
C. A violation of segregation of duties
D. A support process to avoid fraud
A. 3
B. 2
C. 0.5
D. 0.33
A. Assessing the company's compliance with environmental laws and regulations
B. Evaluating whether the organization is meeting the metrics set by management in order to achieve the goals and objectives set forth by the board of directors
C. Assessing the organization's control mechanisms for overall efficiency and reliability
D. Evaluating compliance with applicable laws, regulations, policies, and procedures
A. Information and communication
B. Risk mitigation
C. Monitoring
D. Control environment
A. Depreciation value
B. Prepaid asset
C. Depreciation expense
D. Book value
A. 200
B. 2000
C. 350
D. 20
A. External auditors
B. Senior management
C. Board of directors
D. Union of employee representatives
A. Notes to the financial statements
B. An auditor's report
C. Listing of the stockholders
D. Management discussion and analysis
A. A lower wage rate than planned was paid for direct labor
B. A higher wage rate than planned was paid for direct labor
C. Less direct manufacturing labor-hours were used during production than planned for actual output
D. More direct manufacturing labor-hours were used during production than planned for actual output
A. Positive Figure
B. Negative Figure
C. Zero
A. Master
B. Operating
C. Financial
D. None of these
A. Planning
B. Implementation
C. Database design
D. Verification
E. Operation
A. Variable cost
B. Volume
C. Fixed cost
D. None of the above ..
A. Payables
B. Liabilities
C. Unearned revenue
D. Receivables
A. Ensuring only revenues received in cash are recorded
B. Determining when to record expenses
C. Determining when to record revenues
D. Ensuring expenses are deducted from revenues
A. Is a contra Sales Revenue account
B. Represents additional sales revenue
C. Is a balance sheet account
D. Represents the discount lost when a customer does not pay within the discount period
A. Cost of goods sold
B. Credited to cost of goods sold
C. Net sales revenue
D. Credited to merchandise inventory
A. Break-even price
B. Working capital turnover
C. Return on revenue
D. Inventory turnover
A. Increasing profits
B. Decreasing profits
C. Increasing interest expense
D. Decreasing plant assets
A. Maturity value
B. Face value
C. Cash realizable value
D. Net realizable value
A. Board of directors
B. Stockholders
C. Chairperson
D. Chief operating officer
A. Principals and agents have same goals
B. Principals and agents have different goals
C. Both a and b
D. None of the above
A. Build, Acquire, and Implement
B. Audits
C. Policy principles document.
D. Evaluate, Assess, and Perform
A. Is​ not; an intermediate
B. The fraction of a change in disposable income that is saved
C. Aggregate Demand; recessionary gap
D. Only the value of the bread sold in a​ store;
A. Incident Response Planning
B. Business Continuity Plan
C. Types of Security Policies
D. Disaster Recovery Planning
A. A streamlined process that bypasses paper documents altogether
B. A process that eliminates the need for separation of duties
C. A procedure that compresses the payment approval process into a single step by comparing the receiving report to the purchase order
D. None of above
A. 1%
B. 7%
C. 15%
D. 25%
A. Chocolate
B. Licorice
C. Both a and b
D. None of the above
A. Increase; increase
B. Decrease; decrease
C. Decrease; increase
D. Increase; decrease
A. Achieve a balance between short-term and long-term liabilities so that they add to the achievement of a firm's overall goals
B. Achieve a balance between a firm's non-current assets and non-current liabilities
C. Achieve a balance between profitability and risk that contributes positively to a firm's value
D. Achieve a balance between short-term and long-term assets so that they add to the achievement of a firm's overall goals
A. 1
B. 2
C. 3
D. 4
A. Installment loan
B. Secured loan
C. Open-end
D. Teaser rate
A. Services
B. Goods
C. Money
D. Margin
A. Contribution margin per unit
B. Survive five or more years
C. Public employee credit union
D. Utilities and rent
A. Details
B. Dialogue
C. Imagery
D. Setting
A. Corporate collapses
B. Investors who are uneducated and unaware
C. Decreased corporate governance
D. Decreased profits