Accounting MCQs with Answers

Inflation, changes in interest ration and changes in economic condition affect all firms and all industries. These factors are part of?

1. Market Risk
2. Industry Risk
3. Project Risk
4. International Risk

An annuity for an infinite period of time is called?

1. Perpetuity
2. Capital recover factors
3. Annual
4. Irredeemable

IRR stands for?

1. internal rate of remarks
2. internal rate of refund
3. internal rate of return
4. internal ratio of retur

The effect of overcapitalization is and of under capitalization is ________ dividend rates.

1. Constant, rise
2. Fall, rise
3. Rise, Constant
4. Rise, Fall

IRR is also called as?

1. The marginal Productivity of capital
2. Managerial efficiency of Capital
3. Yield on investment
4. All of these

Capital Intensive industries with longer manufacturing process will have ________ requirements of working capital.

1. Moderate
2. Power
3. Higher
4. Lower

The excess of current assets over current liabilities is called:

1. Working Capital
2. Circulating capital
3. Fixed capital
4. Trading capital

Salaries paid to partners is an:

1. Expense to partnership firm
2. Income of the partnership firm
3. Appropriation of profit among partners
4. None of these

What from the following is not a current asset?

1. Cash
2. Inventory
3. Patent Rights
4. Trade Receivables
5. None of these

The accounting process of allocation cost of intangible assets is called?

1. Residual Value
2. Going concern
3. Depletion
4. Amortization