This quiz works best with JavaScript enabled. Home > Economy > Accounting > Accounting – Quiz 20 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Accounting Quiz 20 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Stock is A) Tangible. B) Intangible. C) Part of current assets. D) Included in the category of fixed assets. Show Answer Correct Answer: C) Part of current assets. 2. This type of growth refers to concentrating activities on markets and/or products that are familiar. A) Intensive. B) Integrative. C) Condensive. D) Diversification. Show Answer Correct Answer: A) Intensive. 3. A balance sheet is A) Loss of assets & liabilities. B) Position statement. C) Trading account. D) Trial balance. Show Answer Correct Answer: B) Position statement. 4. What is customer value? A) Post purchase dissonance. B) Excess of satisfaction over expectation. C) Ratio between the customer's perceived benefits and the resources used to obtained these benefits. D) None of the above. Show Answer Correct Answer: C) Ratio between the customer's perceived benefits and the resources used to obtained these benefits. 5. Acid test ratio is equal to quick current assets divided by ..... A) Total assets. B) Current assets. C) Total liabilities. D) Current liabilities. Show Answer Correct Answer: D) Current liabilities. 6. Holder of an American call option can A) Sell the asset only on expiration. B) Buy the asset only on expiration. C) Buy the asset on or before expiration. D) Sell the asset on or before expiration. Show Answer Correct Answer: C) Buy the asset on or before expiration. 7. The return on equity capital ratio is obtained by dividing net profit (after tax) less preference dividend by A) Current assets. B) Current liabilities. C) Equity capital. D) Total capital. Show Answer Correct Answer: C) Equity capital. 8. Commercial paper is a type of A) Government Bond. B) Equity share capital. C) Fixed coupon Bond. D) Unsecured short-term debt. Show Answer Correct Answer: D) Unsecured short-term debt. 9. Which of the following principles is not related to the preparation of profit and loss account? A) Accrual concept. B) Matching concept. C) Dual aspect concept. D) Accounting period concept. Show Answer Correct Answer: C) Dual aspect concept. 10. Which of the following is a branch of Accounting? A) Cost Accounting. B) Financial Accounting. C) Management Accounting. D) All of the above. Show Answer Correct Answer: D) All of the above. 11. Which accounting standard deals with Earning per share? A) AS-9. B) AS-14. C) AS-18. D) AS-20. Show Answer Correct Answer: D) AS-20. 12. Credit (+) items in the balance of payments correspond to anything that A) Involves payments to foreigners. B) Involves receipts from foreigners. C) Increases the domestic money supply. D) Decreases the demand for foreign exchange. Show Answer Correct Answer: B) Involves receipts from foreigners. 13. If a particular current asset in the current year is more than what was in the previous year, then the change in the current assets results in of working capital. A) Zero. B) Increase. C) Decrease. D) None of these. Show Answer Correct Answer: B) Increase. 14. Consider the following Accounting Concepts A) Business Entity Concept. B) Going Concern Concept. C) Money Measurement Concept. D) All of the above. Show Answer Correct Answer: D) All of the above. 15. Which of the following are the qualitative characteristics of financial statements? A) Relevance. B) Reliability. C) Comparability. D) All of the above. Show Answer Correct Answer: D) All of the above. 16. The significance of capital budgeting arises mainly due to the A) Large Investment. B) Irreversible in nature. C) Complicacies of Investment decisions. D) All of the above. Show Answer Correct Answer: D) All of the above. 17. In 'Percentage of Sales' method of preparation of Projected Financial Statements, the Operating Expenses should be projected on the basis of A) % of Sales. B) % of Gross Profit. C) % of Profit before tax. D) % of Cost of goods Sold. Show Answer Correct Answer: A) % of Sales. 18. Which is the traditional method of Capital budgeting? A) Payout Method. B) Pay back Method. C) Accounting Method. D) All of the above. Show Answer Correct Answer: D) All of the above. 19. Advantages of Budgetary control include A) Reduces Cost. B) Corrective Action. C) Maximization of Profit. D) All of the above. Show Answer Correct Answer: D) All of the above. 20. Discounted cash flow criteria for investment appraisal does not include A) Benefit cost ratio. B) Net present value. C) Internal rate of return. D) Accounting rate of return. Show Answer Correct Answer: A) Benefit cost ratio. ← 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