Accounting MCQs with Answers

Verification refers to

1. Examination of journal and ledger
2. . Examination of voucher relating to assets
3. Examination of physical existence and valuation of assets
4. Calculation of the value of assets

The first and foremost function of management is

1. planning
2. organizing
3. co-ordination
4. controlling

Floating assets are valued at____?

1. Cost less depreciation
2. Cost or market price whichever is lower
3. Market price
4. cost

At break-even point :

1. total expenses = total revenue
2. total expenses > total revenue
3. total expenses < total revenue
4. None of these

___ refers to the risk inherent to the entire market or market segment

1. Financial risk
2. Purchasing power
3. Systematic risk
4. Interest free risk

Debtors have least profit share due to

1. Not participating in operational risk
2. Payment to trade payable s
3. Current ratio and quick ratio
4. None of these

An expenditure which occurs non repeatedly and regularly is known as :

1. Capital expendeture
2. Revenue expenditure
3. Deffered revenue expenditure
4. None of these

The minimum wage rate for unskilled workers in Punjab is per month

1. PKR 25,000 to PKR 32,000
2. PKR 25,00 to PKR 36,000
3. PKR 20,000 to PKR 39,000
4. None of these

Margin of safety is computed as

1. Actual sales - break even sales
2. Contribution margin - fixed costs
3. Actual sales - Contribution margin
4. None of these

Which of the following is not involved in CVP analysis?

1. Sales mix.
2. Unit selling prices.
3. Fixed costs per unit.
4. Volume or level of activity.