Try to answer these 800+ Finance MCQs and check your understanding of the Finance subject. Scroll down and let's begin!
A. Credited to Inventory
B. A customer utilizes a prompt payment incentive.
C. Debited to the Inventory account
D. Gross profit
A. Unequal distribution over time
B. Normative shares of income
C. Cumulative shares of income
D. Total share of income
A. Highlight the different levels of activities
B. Limit cost drivers to units of output
C. Allocate costs based on the overall level of activity
D. Generally undercost complex products
A. A cost-allocation base can be either financial or nonfinancial
B. Using the actual direct cost rates times the actual quantities of the direct-cost inputs
C. Budgeted annual indirect costs divided by budgeted annual quantity of cost allocation base
A. 8 percent
B. 18 percent
C. 28 percent
D. 48 percent
A. The costs incurred this year
B. The costs incurred last year
C. Planned or forecasted costs
D. Competitor's costs
A. Lower of cost or market
B. Specific identification
C. Consistency
D. Ending inventory comes from the most recent purchases
A. Unadjusted trial balance
B. Adjusted trial balance
C. Chart of accounts
D. General journal
A. Own the firm
B. Receive interest payments
C. Receive guaranteed income
D. Have loaned money to the firm
A. Industrial policy; governments, not the free market, should determine which sectors succeed and fail
B. Anti-cabotage laws; the government doesn't need to support basic research
C. Industrial policy; the free market, not governments, should determine which sectors succeed and fail
D. Anti-cabotage laws; the private sector doesn't always support basic research
A. Unit-level
B. Decrease
C. Batch-level
D. None of these
A. Work-in-Process Inventory account
B. It provides information to investors needed for their investment decisions.
C. The cost of those goods that were completed during the period
D. Its employees to plan, direct and control operations
A. Always increase the beginning balance of retained earning
B. Are shown on the statement of retained earnings as corrections to the beginning balance
C. Affect balance sheet accounts only and must be included on single-step income statement
D. Must be included as a separate line item on a multi-step income statement
A. Determining when to record revenues
B. Depreciation Expense
C. Financial statements can be prepared for specific periods
D. None of these
A. Pinterest
B. MySpace
C. Google+
D. LinkedIn
E. Facebook
A. Unsecured; bonds
B. Dividend; yield
C. Indexes; averages
D. Retained; earnings
A. Managerial; financial
B. Managerial; advisory
C. Financial; managerial
D. Investigative; forensic
A. Lean thinking
B. Activity-based costing (ABC) systems
C. TQM programs emphasize nonfinancial measures
D. Activity based-costing (ABC) causes more cost distortion, which results from the allocation of indirect costs, based on the types of product activities and product usage
A. Average or per unit costs
B. Good Choices
C. Law of Diminishing Returns
D. Marginal Product
A. Inverse
B. Neutral
C. Positive
D. Negative
A. Rights offering
B. The stock market
C. Residual owners
D. Present value of a constant growing dividend stream
A. Manufacturing overhead (MOH)
B. Activity-based costing (ABC)
C. Reduction of delivery speed
D. Overutilizing employees
A. Included under the other income and expenses section of the income statement
B. Not considered for the calculation of net income
C. Generally a substantial part of net income
D. Recorded in the Retained Earnings account
A. Must be some characteristic that is common to all of the cost objectives.
B. Ideally should result in cost being allocated based on a cause-and-effect relationship.
C. Selection is not an easy matter.
D. All of these answer choices are correct
A. Cumulative budget
B. Total budget
C. Budget at completion
D. Phased budget
A. Involves tasks such as budgeting, financial forecasting, cash management, and funds procurement
B. Involves the design and delivery of advice and financial products
C. Recognizes funds on an accrual basis
D. Devotes the majority of its attention to the collection and presentation of financial data
A. Systematic risk, diversifiable risk.
B. Systematic risk, nondiversifiable risk.
C. Unique risk, non diverse risk.
D. Unique risk, diversifiable risk.
E. Firm-specific risk
A. Carried back 2 years or carried forward up to 20 years
B. Upward sloping
C. Interest paid on debt
D. Maximizing the value of the firm's equity
A. Cost budgeting
B. Cost control
C. Estimating costs
D. Cost forecasts
A. (or as) the business satisfies each performance obligation
B. The journal entry to record revenue has been prepared
C. There is a binding agreement to provide goods or services
D. The business has received cash from the customer
A. Portfolio expected return
B. Total, systematic
C. Market risk premium
D. Portfolio systematic risk
A. Growth opportunities
B. Replacement cost
C. Current profits
D. Tobin's q
A. Asset allocation; stock selection
B. Bond selection; mutual fund selection
C. Stock selection; asset allocation
D. Stock selection; mutual fund selection
A. Accounting identity
B. Computing identity
C. Investing identity
D. Financing identity
A. New York Stock Exchange
B. American Stock Exchange
C. Midwest Stock Exchange
D. Pacific Stock Exchange
E. OTC Exchange
A. Capital asset pricing model
B. Arbitrage pricing model
C. Zero-growth model
D. Black-Scholes model
A. Home
B. Car
C. Checking account
D. Charge account
E. Life insurance cash value
A. Products and services are evaluated with respect to their value to the supply chain
B. Value is deducted from the products or services of an organisation
C. Value is added to the products or services from the customers perspective
D. Usefulness is added to the products or services of an organization.
A. Cost budgeting
B. Cost estimating
C. Cost control
D. Cost pricing
A. Decreases
B. Increases
C. Both of these
D. None of these
A. Internal rate of return is theoretically superior, but financial managers prefer net present value.
B. Net present value is theoretically superior, but financial managers prefer to use internal rate of return.
C. Financial managers prefer net present value, because it is presented as a rate of return.
D. Financial managers prefer net present value, because it measures benefits relative to the amount invested
A. $857
B. $894
C. $835
D. $821
A. Should focus on resistance levels.
B. Should focus on support levels.
C. Should focus on financial statements.
D. Are wasting their time
A. An increase in return, for a given increase in risk
B. Decrease in return, for a given increase in risk
C. An increase in return, for a given decrease in risk
D. No changes in return, for a given increase in risk
A. Geometric average
B. Arithmetic average
C. IRR
D. Dollar-weighted
A. Market inefficiencies
B. Discontinuities in the markets
C. The need for dealers to cover expenses and make a profit
D. Lack of trading in thin markets
A. Same customer preferences.
B. Changing customer preferences.
C. Decreasing customer preferences.
D. None of these
A. Structured
B. Analytic
C. Semi-structured
D. Undocumented
E. Unstructured
A. Expand into global markets
B. Maximize profits
C. Build profitable customer relationships
D. Avoid the need to advertise
A. Greater than your standard deduction
B. Greater than 5 percent of your adjusted gross income
C. Greater than 7.5 percent of your adjusted gross income
D. Less than your taxable income