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Accounting Mcqs – MCQs
1591 questions. Click to practice.
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1.
Which financial statement presents a company's revenues and expenses?
Statement of Financial Position
Statement of Cash Flows
Profit and Loss Statement
Not Applicable
None of these
2.
What does the acronym LIFO represent?
Large Input, Fast Output
Linked Input, Formatted Output
Last Input, First Output
Last In, First Out
None of the above
3.
In the context of a business, how is capital best defined?
An operational cost
A type of debt
Financial resources or assets
All of the above
None of these
4.
Cash discount is typically offered as an incentive for which of the following?
Goods bought
Early or timely payment
Products sold
Returned merchandise
None of the above
5.
Given that the normal spoilage quantity is 150 units and the total number of good units produced is 1500, what is the rate of normal spoilage?
14 percent
15 percent
10 percent
12 percent
None of the above
6.
What term is used to describe the spoilage that is expected and inherent in a specific manufacturing process?
standard scrap
normal spoilage
abnormal waste
weighted loss
excess spoilage
7.
What is the term for leftover material generated during the production process?
decreased output
defective goods
corrected items
scrap
waste
8.
To determine ____________, you subtract normal spoilage from the total spoilage incurred.
abnormal spoilage
gross weighted spoilage
inventoriable spoilage
partial spoilage
9.
Given that the total cost transferred out is $1,850,000 and the quantity of good units produced is known, what is the cost per good unit transferred out and completed?
245.1724
255.1724
278.1724
268.1724
245.1724
10.
What term describes finished products that fail to meet the original customer's specifications but can still be sold to different buyers?
diminished output
defective waste
reprocessed goods
discarded material
none of the above
11.
To determine ____________, you subtract the total of beginning work-in-process inventory units and units started from the combined total of ending work-in-process inventory units and units transferred out.
Overall weighted spoilage
Spoilage that can be inventoried
Partial spoilage amount
Complete spoilage
Net spoilage
12.
To determine ____________, the number of normal spoilage units is divided by the total number of completed units instead of the total units actually produced.
the rate of normal spoilage
the rate of abnormal spoilage
the rate of normal scrap
the rate of abnormal scrap
13.
Which of the following are categories of spoilage?
standard spoilage
irregular spoilage
weighted spoilage
both standard and irregular spoilage
14.
What term is used for the partially or fully produced items that fail to meet customer requirements and are either sold at a discount or discarded?
spoilage
rework
scrap
equivalence
15.
Which category of spoilage is deemed preventable and manageable?
abnormal spoilage
normal spoilage
spoilage transferred in
spoilage transferred out
16.
What is calculated by dividing the total transferred-out cost plus normal spoilage by the number of good units produced?
Cost per good unit transferred out
Cost per good unit transferred in
Revenue per good unit transferred out
Revenue per good unit transferred in
17.
Which category does the cost of abnormal spoilage not fall under?
conversion expenses
irrecoverable costs
product costs included in inventory
costs not assigned to inventory
18.
Which type of costing describes the manner and timing in which scrap impacts a company's operating profit?
inventory costing
conversion costing
normal scrap costing
abnormal scrap costing
none of the above
19.
Which of the following are involved in the accounting treatment of scrap?
monitoring physical quantities
costing that is excluded from inventory
valuation of inventory costs
both monitoring physical quantities and valuation of inventory costs
20.
Which of the following illustrates an example of rework?
Small offcuts generated during woodworking
Aluminum cans with flaws that are reprocessed by the producer
Identifying faulty items prior to dispatch
None of the above
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