📒Accounting MCQs
Accounting MCQs
397 MCQs351
Costs that change in response to alternative courses of action are called___________?
ARelevant costs
BDifferential costs
CTarget costs
DSunk costs
352
An average cost is also known as________?
AVariable cost
BUnit cost
CTotal cost
DFixed cost
353
When production is equal to sales, which of the following is TRUE?
ANo change occurs to inventories for either use absorption costing or variable costing methods
BThe use of absorption costing produces a higher net income than the use of variable costing
CThe use of absorption costing produces a lower net income than the use of variable costing
DThe use of absorption costing causes inventory value to increase more than they would though the use of variable costing
354
Which English alphabet is similar to the shape of an account?
AI
BT
CH
DNone
355
The most common imprest system is the ________ system?
APetty cash
BCash book
CCash receipt
DDiscount
356
Under which of the following situations, is journal entry not passed in the books of the drawer?
Ais the correct answer
Ba journal entry debiting bills sent to bank for collection and crediting Bills Receivable is passed. When a bill is renewed at the request of the drawee
Ca journal entry is passed canceling the old bill and raising a new bill with interest. When a debtor accepts a bill drawn by the drawer
Dwhen a debtor is converted to bills receivable and debtors balance is reduced and Bills Receivable account is increased to extent of the amount passing a journal entry to that effect. Thus,
357
The drawer of a trade bill passes relevant entries with regard to the transaction involved in it. But, in case of an accommodation bill, he passes an entry in addition to the usual entries. The additional entry so passed is with respect to
Aand no additional entry is passed except for sending the share of proceeds to the drawee. On payment of the bill on due date
Bno additional entry is passed in the books of the drawer. If the bill is sent to the bank for collection,
Cis the correct answer.
D. Thus,
358
The noting charges levied on dishonour of an endorsed bill by the Notary Public are to be borne by
Ais incorrect answer because the drawer may pay the charges initially but ultimately they are to be borne by the drawee. The holder of the
Bis the correct answer.
Cis entitled to receive the payment of the bill and to bear the noting charges on the bill. The endorser
Dmay be the drawer of the bill in which case he will recover the noting charges from the drawee of the bill. Thus
359
Budgeted sales for the next year is 5,00,000 units. Desired ending finished goods inventory is 1,50,000 units and equivalent units in ending W-I-P inventory is 60,000 units. The opening finished goods inventory for the next year is 80,000 units, with 50,000 equivalent units in beginning W-I-P inventory How many equivalent units should be produced?
A5,80,000
B5,50,000
C5,00,000
360
X draws a Bill of Exchange on Y for 10,000 on 1-1-2013 for 3 months. The due date of the bill will be_________?
A4-4-2013
B3-4-2013
C1-4-2013
D31-3-2013