Accounting MCQs / Q&A

Non Trading institution prepare:______________?

A. profit and loss account
B. Manufacturing account
C. Income and Expenditure Account
D. Cost of good sold

Depreciation fund method is also known as__________?

A. Sinking Fund Method
B. Annuity Method
C. Sum of Year Digits Method
D. None of these

Tender is an_____________?

A. estimation of profit.
B. estimation of cost.
C. estimation of selling price.
D. estimation of units.

Warehouse rent is a part of _________?

A. prime cost.
B. factory cost.
C. distribution cost.
D. production cost

Overhead cost is the total of ____________.

A. all indirect costs.
B. all direct costs.
C. indirect and direct costs.
D. all specific costs

Direct cost incurred can be identified with_______________?

A. Each Department
B. Each unit of output
C. Each Month
D. Each Executive

Direct cost incurred can be identified with each unit of output. Direct costs (such as for labor, material, fuel or power) vary with the rate of output but are uniform for each unit of production, and are usually under the control and responsibility of the department manager.

The process of paying off debt over time in regular installment of interest & principal sufficient to repay the loan in fully by its maturity date.A. Amortization
B. Loan Payment
C. Liability
D. Securitization