This quiz works best with JavaScript enabled. Home > Economy > Accounting > Accounting – Quiz 10 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Accounting Quiz 10 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Budgets can be classified according to A) Time. B) Flexibility. C) Functions. D) All of the above. Show Answer Correct Answer: D) All of the above. 2. Expenditure incurred on research is an example of A) Capital expenditure. B) Revenue expenditure. C) Deferred revenue expenditure. D) Partly capital expenditure are partly revenue expenditure. Show Answer Correct Answer: C) Deferred revenue expenditure. 3. The exchange rate is kept the same across geographically-separate markets by A) Hedging. B) Arbitrage. C) Speculation. D) Government regulation. Show Answer Correct Answer: B) Arbitrage. 4. Which is the step of capital budgeting process? A) Project Selection. B) Project Evaluation. C) Project Generation. D) All of the above. Show Answer Correct Answer: D) All of the above. 5. What are the ways of creating secret reserves? A) By charging excessive depreciation. B) By overvaluing stock in trade and goodwill. C) By showing a contingent liability as a real liability. D) All of the above. Show Answer Correct Answer: D) All of the above. 6. Amount spent on an advertisement campaign, the benefit of which is likely to last for three years is a A) Deferred revenue expenditure. B) Revenue expenditure. C) Capital expenditure. D) None of the above. Show Answer Correct Answer: A) Deferred revenue expenditure. 7. Capital budgeting involves the A) Planning of expenditure for assets. B) Planning of Purchase. C) Planning of Sales. D) All of the above. Show Answer Correct Answer: A) Planning of expenditure for assets. 8. Operating profit ratio may be calculated by A) 100 - Operating ratio. B) (Operating profit / Net Sales) x 100. C) Both (a) and (b). D) ((Cost of goods sold -Cost of operation)/Sales) x 100. Show Answer Correct Answer: C) Both (a) and (b). 9. Acid test ratio should normally be ..... A) 1 : 1. B) 2 :1. C) 3 :1. D) 4 :1. Show Answer Correct Answer: A) 1 : 1. 10. What does the 'net worth' of a business signify? A) Total assets. B) Current - total liabilities. C) Total assets - total liabilities. D) Fixed assets - current assets. Show Answer Correct Answer: C) Total assets - total liabilities. 11. The formula, $((1 - t_i) EPS / MP )$$\times$ 100, may be used for A) Cost of debt capital. B) Cost of equity capital. C) Cost of retained earnings. D) Cost of preference share capital. Show Answer Correct Answer: C) Cost of retained earnings. 12. Degree of operating leverage can be computed by A) Sales / Fixed Cost. B) % Sales / % Profit. C) Sales /Cost of production. D) ( % $\Delta$ in Operating Income) / ( % $\Delta$ in sales ). Show Answer Correct Answer: A) Sales / Fixed Cost. 13. Which of the following is a type of budget according to function? A) Fixed Budget. B) Flexible Budget. C) Operating Budget. D) Long term Budget. Show Answer Correct Answer: C) Operating Budget. 14. Which of the following statements about partnership firm is not correct? A) It is managed by partners. B) It has no separate legal existence. C) Acts of the partners are binding on the firm. D) A partner can transfer his interest without the consent of other partners. Show Answer Correct Answer: D) A partner can transfer his interest without the consent of other partners. 15. A person may not have assessable income but may still be assessee. A) True. B) False. C) Cannot be said with certainty. D) Is decided by the Assessing Officer. Show Answer Correct Answer: A) True. 16. Which is the merits or advantages of 'Net Present Value Method'? A) This method can be applied where cash inflows are even. B) It takes into account the objective of maximum profitability. C) This method considers the entire economic life of the project. D) All of the above. Show Answer Correct Answer: D) All of the above. 17. Current account deficits are offset by A) Merchandise trade deficits. B) Merchandise trade surpluses. C) Capital/financial account deficits. D) Capital/financial account surpluses. Show Answer Correct Answer: D) Capital/financial account surpluses. 18. Which one is the principle of capital structure? A) Risk principle. B) Cost principle. C) Control principle. D) All of these. Show Answer Correct Answer: D) All of these. 19. A sudden shift from import tariffs to free trade may induce short-term unemployment in A) Import-competing industries. B) Industries that are only exporters. C) Industries that neither import nor export. D) Industries that sell domestically as well as export. Show Answer Correct Answer: A) Import-competing industries. 20. ..... has become a standard model for email marketing. A) Netiquette. B) Webcasting. C) Targeted marketing. D) Permission-based marketing. Show Answer Correct Answer: D) Permission-based marketing. ← PreviousNext →Related QuizzesEconomy QuizzesAccounting Quiz 1Accounting Quiz 2Accounting Quiz 3Accounting Quiz 4Accounting Quiz 5Accounting Quiz 6Accounting Quiz 7Accounting Quiz 8Accounting Quiz 9 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books