Accounting Mcqs

Page No. 35

Costs that change in response to alternative courses of action are called___________?


aRelevant costs

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bDifferential costs

✓


cTarget costs

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dSunk costs

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View Answer Differential costs

An average cost is also known as________?


aVariable cost

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bUnit cost

✓


cTotal cost

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dFixed cost

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View Answer Unit cost

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

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cThe use of absorption costing produces a lower net income than the use of variable costing

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dThe use of absorption costing causes inventory value to increase more than they would though the use of variable costing

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Which English alphabet is similar to the shape of an account?


aI

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bT

✓


cH

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dNone

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View Answer T

The most common imprest system is the ________ system?


aPetty cash

✓


b Cash book

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cCash receipt

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dDiscount

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View Answer Petty cash

A cash book with cash, bank and discount column is commonly referred as________?


aCash book

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bTwo columns cash book

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cThree columns cash book

✓


dPetty cash book

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Introduction capital by owner of business is recorded on which side of a cash book?


aReceipts

✓


bPayments

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cIncomes

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dExpenditures

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View Answer Receipts

Cash discount is allowed on _______ repayment of debt.


aLump sum

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bPrompt

✓


cActual

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dNone of them

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View Answer Prompt

Payment of rent expenses is recorded on which side of cash book?


aReceipts

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bPayments

✓


cIncome

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dExpense

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View Answer Payments

Drawings by owner of business are generally recorded on which of the following side of a cash book?


aReceipts

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bPayments

✓


cIncomes

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dExpenditures

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View Answer Payments

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