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 79 of 99
- A. $501,500
- B. $401,500
- C. $201,500
- D. $301,500
Explanation: Since working capital equals current assets minus current liabilities, current liabilities are $856,000 − $654,500 = $201,500.
Correct answer: $201,500- A. cost statement
- B. preformed statement
- C. sales statement
- D. market statement
Explanation: These are called pro forma statements, which present projected financial results or plans for future periods.
Correct answer: preformed statement- A. communicating company position to investors
- B. helping managers make decisions
- C. future oriented
- D. single person orientation
Explanation: Financial accounting provides standardized information about a company's financial position and performance to external users, especially…
Correct answer: communicating company position to investors- A. external parties
- B. internal parties
- C. environmental parties
- D. transactional partiesHire Grant Writers
Explanation: Investors, banks, suppliers, and government agencies are outside the business, so they are external users of financial accounting…
Correct answer: external parties1565. If the gross margin is $9000 and the cost of goods sold is $8000 then the revenue will be _________?
- A. $1,000
- B. −$1000
- C. $17,000
- D. −$17000
Explanation: Gross margin equals revenue minus cost of goods sold, so revenue is $9,000 + $8,000 = $17,000.
Correct answer: $17,000- A. $23,000
- B. −$23000
- C. −$9000
- D. $9,000
Explanation: Cost of goods sold equals revenue minus gross margin: $16,000 − $7,000 = $9,000.
Correct answer: $9,000- A. −$8000
- B. $3,000
- C. −$3000
- D. $8,000Access Government Careers
Explanation: Gross margin equals revenue minus cost of goods sold, so cost of goods sold is $5,000 − $2,000 = $3,000.
Correct answer: $3,000- A. revenues
- B. selling price
- C. unit price
- D. bundle price
Explanation: Gross margin is revenue minus cost of goods sold; therefore, adding gross margin back to cost of goods sold gives revenue.
Correct answer: revenues- A. Gross margin
- B. income margin
- C. sales margin
- D. cost marginHire An Accountant
Explanation: Gross margin compares sales revenue with the cost of goods sold, so it helps indicate how competitively a business can price its products…
Correct answer: Gross margin1570. If the cost of goods sold is $8000, the gross margin is $5000 then the revenue will be ___________?
- A. $13,000
- B. −$13000
- C. $3,000
- D. −$3000
Explanation: Revenue equals cost of goods sold plus gross margin: $8,000 + $5,000 = $13,000.
Correct answer: $13,000- A. income margin percentage
- B. Gross margin percentage
- C. cost margin percentage
- D. sales margin percentage
Explanation: Gross margin divided by revenue measures the portion of sales remaining after cost of goods sold, so it is the gross margin percentage.
Correct answer: Gross margin percentage- A. revenues
- B. operating leverage
- C. contribution margin
- D. operating marginCompany Earnings
Explanation: Revenue is derived by adding gross margin to cost of goods sold: Revenue = Cost of goods sold + Gross margin.
Correct answer: revenues- A. $3,000
- B. $300
- C. $4,700
- D. $4,500
Explanation: Static budget variance equals actual results minus the original static budget: $2,500 minus $2,200 equals $300.
Correct answer: $300- A. factory overhead costs
- B. manufacturing overhead costs
- C. Inventoriable Costs
- D. finished costs
Explanation: Inventoriable costs are product costs initially recorded as inventory assets on the balance sheet and expensed as cost of goods sold when…
Correct answer: Inventoriable Costs- A. direct materials inventory
- B. work in process inventory
- C. finished goods inventory
- D. indirect material inventory
Explanation: Goods that have entered production but are not yet complete are held in work in process inventory.
Correct answer: work in process inventory- A. profit and loss account
- B. Manufacturing account
- C. Income and Expenditure Account
- D. Cost of good sold
Explanation: A non-trading institution does not primarily calculate profit from buying and selling goods, so it prepares an Income and Expenditure…
Correct answer: Income and Expenditure Account- A. 0.65
- B. 0.35
- C. 1.50
- D. 5.29
Explanation: Return on investment is calculated as asset turnover multiplied by profit margin: 1.85 × 0.35 = 0.6475, or approximately 0.65.
Correct answer: 0.65- A. 50,000
- B. 55,000
- C. 60,000
- D. 65,000
Explanation: Cost of goods sold is sales less gross profit, or 220,000 minus 40,000 = 180,000.
Correct answer: 60,000- A. Dressing Balance Sheet
- B. Marshalling Balance Sheet
- C. Formatting Balance Sheet
- D. Make up of Balance Sheet
Explanation: Marshalling means arranging balance-sheet items in a logical order, usually according to liquidity or permanence.
Correct answer: Marshalling Balance Sheet- A. Income from sale of trading goods
- B. Bad debts recovered
- C. Interest on FDs
- D. None
Explanation: Interest on fixed deposits is normally non-operating income because it arises from an investment rather than the main trading activity.
Correct answer: Interest on FDs