Business and Finance MCQs Test 06 Preparation Online

Economics

1. Goodwill of a firm represents:

A. Intangible assets

B. Fictitious assets

C. Tangible assets

D. Fixed assets

2. A bank account is a:

A. Nominal account

B. Liability account

C. Personal account

D. Real account

3. The excess of current assets over current liabilities is called:

A. Net tangible worth

B. Net worth

C. Working capital

D. Turnover

4. Which method of costing is used by sugar mills ?

A. Process costing

B. Unit or output costing

C. Batch costing

D. Job costing

5. Depreciation is the process of:

A. Valuation of assets

B. Use of assets

C. None of the above

D. Allocation of costs

6. Prepaid expenses appearing in a trial balance will figure in the:

A. Prepaid expenses account

B. Profit and loss account

C. Balance sheet

D. Profit and loss account and balance sheet

7. Sale of old furniture on credit will appear in the:

A. Journal

B. Debtors ledger

C. Sales day book

D. Cash book

8. What is Conversion Cost ?

A. Cost of materials and labour

B. Cost of transforming direct materials into finished products

C. Cost of labour

D. Total cost of running business

9. In an integrated costing system, most of the data relevant to cost accounting comes from the:

A. Financial accounting system

B. Cost accounting system

C. Sales and distribution system V H-

D. Stores accounting system

10. What is the objective of cost accounting ?

A. Cost control

B. Cost analysis

C. All of the above

D. Cost determination

Business and Finance MCQs Test 06 Preparation Online

Economics

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