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 38 of 99
- A. controllability
- B. influential power
- C. responsibility
- D. all of above
Explanation: Controllability refers to the extent to which a manager can influence revenues, costs, profits, or investments assigned to that manager.
Correct answer: controllability- A. advantages of budget
- B. disadvantages of budget
- C. advantages of costing method
- D. disadvantages of costing method
Explanation: A budget can provide a strategic framework, promote coordination, and establish a basis for evaluating performance, so these are…
Correct answer: advantages of budget- A. total goods manufactured
- B. total cash available
- C. total revenue
- D. total goods soldAccounting & Auditing
Explanation: Beginning cash plus expected cash receipts gives total cash available before cash payments are deducted.
Correct answer: total cash available- A. price disbursements
- B. cash disbursements
- C. budget disbursements
- D. goods disbursements
Explanation: Direct labour payments, salaries, and payments for direct materials are cash outflows, so they appear under cash disbursements in the cash…
Correct answer: cash disbursements- A. investment planning models
- B. financial planning models
- C. cost planning models
- D. revenues forecast models
Explanation: Financial planning models allow management to change assumptions and study their effects through sensitivity analysis.
Correct answer: financial planning models- A. choose alternatives
- B. evaluate alternatives
- C. efficiency improvements
- D. predicted improvements
Explanation: After identifying the problem, developing alternatives, and evaluating them, management chooses the most suitable alternative as the…
Correct answer: choose alternatives- A. rolling budget
- B. pin budget
- C. specific budget
- D. past budgetAccounting & Auditing
Explanation: A continuous budget is updated regularly by adding a new future period as the current period ends, so it is also called a rolling budget.
Correct answer: rolling budget- A. identify the product
- B. identify the problem
- C. identify the quartiles
- D. identify the percentiles
Explanation: Operating-budget development begins by identifying the problem or planning objective that needs attention.
Correct answer: identify the problem- A. budgetary slack
- B. costly slack
- C. influential slack
- D. target slack
Explanation: Budgetary slack is the cushion created when managers underestimate expected revenues or overestimate expected costs, protecting them…
Correct answer: budgetary slack- A. planned schedule
- B. cash budget
- C. market budget
- D. price schedule
Explanation: A cash budget summarizes expected cash receipts and cash disbursements for a future period, helping management anticipate shortages or…
Correct answer: cash budget- A. marketing center
- B. financial center
- C. responsibility center
- D. planning center
Explanation: Revenue, cost, profit, and investment centers are types of responsibility centers because each manager is accountable for a specified area…
Correct answer: responsibility center- A. cash receipts
- B. budget receipts
- C. goods manufactured
- D. total goods sold
Explanation: Cash sales, collections from accounts receivable, and rental income are all sources of cash inflows, collectively called cash receipts.
Correct answer: cash receipts- A. 11000 units
- B. 13000 units
- C. 10000 units
- D. 7000 units
Explanation: Required production equals budgeted sales plus desired ending inventory minus beginning inventory: 8,000 + 2,000 - 3,000 = 7,000 units.
Correct answer: 7000 units- A. annual profit plan
- B. budgeting
- C. coordination
- D. complex plan
Explanation: Coordination means balancing and integrating the activities of different departments and the various aspects of products or services.
Correct answer: coordination- A. plan coordination
- B. plan accounts
- C. obtain information
- D. coverage information
Explanation: After the initial planning stage, management must obtain the sales, production, cost and other information needed to prepare the operating…
Correct answer: obtain information- A. annual budget
- B. operating budget
- C. specific budget
- D. master budget
Explanation: A master budget combines the operating budgets with the financial budget and presents the organisation’s overall plan for a period…
Correct answer: master budget- A. change analysis
- B. original analysis
- C. sensitivity analysis
- D. predicted analysis
Explanation: Sensitivity analysis uses a what-if approach to measure how changes in assumptions, such as sales volume or costs, affect the projected…
Correct answer: sensitivity analysis- A. serial correlation
- B. marketing plan
- C. financial plan
- D. both B and C
Explanation: The master budget consolidates all departmental projections, including operating plans such as marketing and the financial plan.
Correct answer: both B and C- A. 6000 units
- B. 4000 units
- C. no units
- D. 8000 unitsUrban & Regional Planning
Explanation: Required production equals budgeted sales plus desired ending inventory minus beginning inventory: 2,000 + 3,000 − 1,000 = 4,000 units.
Correct answer: 4000 units- A. focused accounting
- B. responsibility accounting
- C. information accounting
- D. blame accounting
Explanation: Responsibility accounting assigns information and accountability to the managers responsible for particular activities or cost centres.
Correct answer: responsibility accounting