Business and Finance MCQs Test 06 Preparation Online

Economics

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

A. Profit and loss account

B. Profit and loss account and balance sheet

C. Prepaid expenses account

D. Balance sheet

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

A. Stores accounting system

B. Sales and distribution system V H-

C. Cost accounting system

D. Financial accounting system

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

A. Batch costing

B. Unit or output costing

C. Job costing

D. Process costing

4. Depreciation is the process of:

A. None of the above

B. Allocation of costs

C. Use of assets

D. Valuation of assets

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

A. Turnover

B. Net worth

C. Working capital

D. Net tangible worth

6. What is Conversion Cost ?

A. Cost of materials and labour

B. Cost of labour

C. Total cost of running business

D. Cost of transforming direct materials into finished products

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

A. Cash book

B. Sales day book

C. Journal

D. Debtors ledger

8. Goodwill of a firm represents:

A. Tangible assets

B. Fixed assets

C. Fictitious assets

D. Intangible assets

9. What is the objective of cost accounting ?

A. Cost analysis

B. All of the above

C. Cost control

D. Cost determination

10. A bank account is a:

A. Real account

B. Personal account

C. Liability account

D. Nominal account

Business and Finance MCQs Test 06 Preparation Online