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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 49 of 99

961. If the fixed cost is $65000 and the contribution margin percentage for the bundle is 0.575, then the breakeven revenue will be ____________?

  • A. $113,043.48
  • B. $1,200,000
  • C. $130,000
  • D. $140,000

Explanation: Breakeven revenue equals fixed cost divided by contribution margin percentage: $65,000 ÷ 0.575 = $113,043.48.

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Correct answer: $113,043.48

962. If the contribution margin is $25000 and the revenues are $60000, then all the variable costs will be __________?

  • A. −$85000
  • B. −$35000
  • C. $85,000
  • D. $35,000

Explanation: Variable costs equal revenue minus contribution margin: $60,000 − $25,000 = $35,000.

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Correct answer: $35,000

963. If the contribution margin is $72000 and the operating income is $12000, then the degree of operating leverage would be ___________?

  • A. 8
  • B. 7
  • C. 6
  • D. 5

Explanation: Degree of operating leverage equals contribution margin divided by operating income: $72,000 ÷ $12,000 = 6.

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Correct answer: 6

964. If the breakeven revenue is $360000 and the revenue per bundle is $12000, then the number of bundles to be sold to breakeven can be ___________?

  • A. 52 bundles
  • B. 48 bundles
  • C. 45 bundles
  • D. 30 bundles

Explanation: Breakeven bundles equal breakeven revenue divided by revenue per bundle: $360,000 ÷ $12,000 = 30 bundles.

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Correct answer: 30 bundles

965. If the margin of safety is $25000 and the budgeted revenue is $45000, then the margin of safety in percentage will be __________?

  • A. 55.56%
  • B. 25.50%
  • C. 28%
  • D. 45.00%

Explanation: Margin of safety percentage is calculated as margin of safety divided by budgeted revenue, multiplied by 100: $25,000 ÷ $45,000 × 100 =…

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Correct answer: 55.56%

966. The formula to calculate the contribution margin is ___________?

  • A. revenue - all variable cost
  • B. revenue + all variable cost
  • C. cost + revenue
  • D. revenue - breakeven units

Explanation: Contribution margin is the amount remaining from revenue after deducting all variable costs, so it is revenue minus all variable cost.

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Correct answer: revenue - all variable cost

967. The set of all the occurrences that may happen in near future or in any other fixed time are called __________?

  • A. events
  • B. distribution
  • C. outcome
  • D. actions

Explanation: An event is an occurrence that may happen at a future or specified time.

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Correct answer: events

968. If the budgeted revenue is $50000 and the breakeven revenue is $35000, then the margin of safety would be ____________?

  • A. $12,000
  • B. $14,000
  • C. $15,000
  • D. $16,000

Explanation: Margin of safety is budgeted revenue minus breakeven revenue: $50,000 − $35,000 = $15,000.

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Correct answer: $15,000

969. If the fixed cost is $20000, the target operating income is $10000 and the contribution margin per unit is $1200 then required units to be sold will be __________?

  • A. 55 units
  • B. 45 units
  • C. 35 units
  • D. 25 units

Explanation: Required units equal fixed cost plus target operating income, divided by contribution margin per unit: ($20,000 + $10,000) ÷ $1,200 = 25…

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Correct answer: 25 units

970. If the target net income is $9600 and the tax rate is 40%, then the target operating income would be ___________?

  • A. $10,000
  • B. $12,000
  • C. $16,000
  • D. $14,000

Explanation: With a 40% tax rate, net income is 60% of operating income, so target operating income is $9,600 ÷ 0.60 = $16,000.

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Correct answer: $16,000

971. In accounting, the possibility of deviation of actual amount from an expected amount is classified as ___________?

  • A. contribution
  • B. certainty
  • C. uncertainty
  • D. margin

Explanation: Uncertainty exists when the actual amount may deviate from the expected amount.

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Correct answer: uncertainty

972. In monetary terms, an expected value of the outcome is classified as __________?

  • A. expected value
  • B. expected decision value
  • C. expected outcome value
  • D. expected monetary value

Explanation: Expected monetary value is the probability-weighted monetary value of possible outcomes, calculated by multiplying each outcome by its…

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Correct answer: expected monetary value

973. The quantity or number of units of different products that together make up total sales of the company is called _____________?

  • A. sales mix
  • B. product mix
  • C. unit mix
  • D. quantity mix

Explanation: Sales mix is the relative quantity or proportion of different products included in a company’s total sales.

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Correct answer: sales mix

974. In cost accounting, the financial way of charging price for product above the cost, of acquiring or producing the goods is known as ___________?

  • A. sales margin
  • B. cost margin
  • C. Gross margin
  • D. income margin

Explanation: Gross margin is the excess of selling revenue over the cost of goods sold, representing the amount earned above the product’s acquisition…

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Correct answer: Gross margin

975. If the contribution margin of bundle is $4000 and the revenue of the bundle is $16000, then the contribution margin percentage for bundle will be _____________?

  • A. 10%
  • B. 15%
  • C. 25%
  • D. 35%Compare Credit Cards

Explanation: Contribution margin percentage equals contribution margin divided by revenue: $4,000 ÷ $16,000 = 0.25, or 25%.

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Correct answer: 25%

976. If the gross margin is $6000 and the total revenue is $26000, then the gross margin percentage will be _____________?

  • A. 23.08%
  • B. 24.08%
  • C. 25.08%
  • D. 26.08%

Explanation: Gross margin percentage is calculated as gross margin divided by total revenue: $6,000 ÷ $26,000 × 100 = 23.08%.

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Correct answer: 23.08%

977. The revenue is $11000 and all the variable cost is $6000, then the contribution margin would be ____________?

  • A. −$17000
  • B. $17,000
  • C. $5,000
  • D. −$5000

Explanation: Contribution margin equals revenue minus total variable cost, so $11,000 − $6,000 = $5,000.

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Correct answer: $5,000

978. The target operating income is multiplied to tax rate and then subtracted from target operating income to calculate _____________?

  • A. target net cost
  • B. target net income
  • C. target net gain
  • D. target net lossCompare Credit Cards

Explanation: Tax on target operating income is deducted from that operating income to obtain target net income: operating income minus income tax…

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Correct answer: target net income

979. An effect of fixed cost to change in operating income is classified as ___________?

  • A. uncertain margin
  • B. certain margin
  • C. operating margin
  • D. operating leverage

Explanation: Operating leverage describes how fixed operating costs magnify changes in operating income when sales change.

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Correct answer: operating leverage

980. If the budgeted sales in unit is 50 and the breakeven sales in unit is 12, then the margin of safety in units will be __________?

  • A. 62
  • B. 38
  • C. 48
  • D. 58

Explanation: Margin of safety in units equals budgeted sales units minus breakeven sales units: 50 − 12 = 38 units.

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Correct answer: 38
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