All Free Accounting MCQs with Answers
Every Accounting question in the bank, across all chapters, each with the correct answer and a written explanation. Free and unlimited, with no account needed.
1,971 questions · page 34 of 99
- A. Blood haunt
- B. Watch dog
- C. May both according to situation
- D. None of these
Explanation: An auditor is called a watchdog because the auditor independently examines accounts and reports material irregularities, rather than…
Correct answer: Watch dog- A. To inspect
- B. To examine
- C. To hear
- D. To investigateAccounting & Finance Jobs
Explanation: Audit comes from the Latin audire, meaning “to hear,” reflecting the historical practice of hearing accounts read aloud.
Correct answer: To hear- A. Auditing
- B. Vouching
- C. Verification
- D. Checking
Explanation: Auditing is a systematic examination of an entity's books, records and supporting evidence, followed by an independent conclusion.
Correct answer: Auditing- A. 1200 units
- B. 990 units
- C. 1300 units
- D. 1000 units
Explanation: Units to account for are 2,600 beginning WIP plus 9,000 started, or 11,600 units.
Correct answer: 1300 units- A. 14%
- B. 15%
- C. 10%
- D. 12%
Explanation: Using the figures given, the spoilage rate is 150 divided by 1,500, which equals 10%.
Correct answer: 10%- A. normal scrap
- B. normal spoilage
- C. abnormal spoilage
- D. weighted spoilage
Explanation: Spoilage that is expected under normal operating conditions of a production process is called normal spoilage.
Correct answer: normal spoilage- A. reduced work
- B. spoilage
- C. rework
- D. scrap
Explanation: Scrap is residual material left from manufacturing that generally has little value but may be sold or reused.
Correct answer: scrap- A. abnormal spoilage
- B. Gross weighted spoilage
- C. inventoriable spoilage
- D. partial spoilage
Explanation: Abnormal spoilage is found by subtracting the spoilage expected under normal production conditions from total spoilage.
Correct answer: abnormal spoilage- A. Gross weighted spoilage
- B. inventoriable spoilage
- C. partial spoilage
- D. total spoilage
Explanation: Total spoilage is found by reconciling units: beginning work in process plus units started, less ending work in process and units…
Correct answer: total spoilage- A. normal spoilage rates
- B. abnormal spoilage rates
- C. normal scrap rates
- D. abnormal scrap rates
Explanation: The normal spoilage rate uses normal spoilage units as the numerator and total completed good units as the denominator.
Correct answer: normal spoilage rates- A. normal spoilage
- B. abnormal spoilage
- C. weighted spoilage
- D. both a and b
Explanation: Spoilage is classified as normal when it is expected under efficient operations and abnormal when it exceeds the expected amount.
Correct answer: both a and b- A. spoilage
- B. rework
- C. scrap
- D. equivalence
Explanation: Spoilage consists of partially or fully completed units that fail specifications and cannot be economically corrected, so they are…
Correct answer: spoilage- A. abnormal spoilage
- B. normal spoilage
- C. transferred-in spoilage
- D. transferred-out spoilage
Explanation: Abnormal spoilage is considered avoidable and controllable because it results from inefficiencies beyond the expected production loss.
Correct answer: abnormal spoilage- A. cost per good units transferred out
- B. cost per good units transferred in
- C. revenue per good units transferred out
- D. revenue per good units transferred in
Explanation: Adding the cost of normal spoilage to transferred-out cost spreads the production cost over the good units produced.
Correct answer: cost per good units transferred out- A. inventory costing
- B. conversion costing
- C. normal scrap costing
- D. abnormal scrap costingHire An Accountant
Explanation: Inventory costing explains how scrap is recorded and when its proceeds or cost effect is recognized in operating income.
Correct answer: inventory costing- A. physical tracking
- B. non-inventoriable costing
- C. inventory costing
- D. both a and c
Explanation: Scrap accounting covers both physical tracking of scrap units and inventory costing, which determines the financial effect of scrap.
Correct answer: both a and c- A. rework point
- B. inspection point
- C. spoilage point
- D. scrap point
Explanation: An inspection point is the stage at which completed or partly completed units are examined against quality standards and accepted or…
Correct answer: inspection point- A. normal scrap
- B. normal spoilage
- C. abnormal spoilage
- D. weighted spoilage
Explanation: Abnormal spoilage is the excess spoilage that is not expected under efficient operating conditions or the normal production process.
Correct answer: abnormal spoilage- A. short lengths from wood work
- B. defective aluminum cans recycled by manufacturer
- C. detection of defective pieces before shipment
- D. all of above
Explanation: Defective aluminum cans that cannot be sold as intended and are recycled are treated as spoilage.
Correct answer: defective aluminum cans recycled by manufacturer- A. conversion costs
- B. sunk costs
- C. inventoriable costs
- D. non inventoriable costs
Explanation: Normal spoilage is an expected part of production, so its cost is absorbed into the cost of the good units produced and remains…
Correct answer: inventoriable costs