Accounting Mcqs

Page No. 35

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


aRelevant costs


bDifferential costs


cTarget costs


dSunk costs


View Answer Differential costs

An average cost is also known as________?


aVariable cost


bUnit cost


cTotal cost


dFixed cost


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


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



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


aI


bT


cH


dNone


View Answer T

The most common imprest system is the ________ system?


aPetty cash


b Cash book


cCash receipt


dDiscount


View Answer Petty cash

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


aCash book


bTwo columns cash book


cThree columns cash book


dPetty cash book



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


aReceipts


bPayments


cIncomes


dExpenditures


View Answer Receipts

Cash discount is allowed on _______ repayment of debt.


aLump sum


bPrompt


cActual


dNone of them


View Answer Prompt

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


aReceipts


bPayments


cIncome


dExpense


View Answer Payments

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


aReceipts


bPayments


cIncomes


dExpenditures


View Answer Payments

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