MCQOPTIONS
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MCQOPTIONS
This section includes 23 Mcqs, each offering curated multiple-choice questions to sharpen your Finance & Accounting knowledge and support exam preparation. Choose a topic below to get started.
| 1. |
Which of the following statements about market segmentation is true? |
| A. | It is a process of identifying and profiling distinct groups of buyers who differ in their needs and wants. |
| B. | It is a process of creating an image or identity of the product in the minds of the target market. |
| C. | It is a process of evaluating each segment's attractiveness and selecting one or more to enter. |
| D. | It involves changing the identity of a product, relative to the identity of competing products, in the collective minds of the target market. |
| Answer» B. It is a process of creating an image or identity of the product in the minds of the target market. | |
| 2. |
Which of the following is not true about enterprise systems? |
| A. | Enterprise software is expressly built to allow companies to mimic their unique business practices. |
| B. | Enterprise software includes analytical tools to evaluate overall organizational performance. |
| C. | Enterprise system data have standardized definitions and formats that are accepted by the entire organization. |
| D. | Enterprise systems help firms respond rapidly to customer requests for information or products. |
| Answer» B. Enterprise software includes analytical tools to evaluate overall organizational performance. | |
| 3. |
Which of the following is not economic investment? |
| A. | the piling up of inventories on a grocer's shelf |
| B. | the purchase of a drill press by the Ajax Manufacturing Company |
| C. | construction of a suburban housing project |
| D. | the purchase of 100 shares of AT&T by a retired business executive |
| Answer» E. | |
| 4. |
Which among the following is an asset for a bank? |
| A. | The loans disbursed by Bank to its customers |
| B. | Cash Deposits of Customers |
| C. | Investments made by Bank’s customers in its financial Products |
| D. | All of the above |
| Answer» B. Cash Deposits of Customers | |
| 5. |
When an account becomes uncollectible and must be written off |
| A. | Accounts Receivable should be credited |
| B. | Sales Revenue should be debited |
| C. | Allowance for Doubtful Accounts should be credited |
| D. | Bad Debt Expense should be credited |
| Answer» B. Sales Revenue should be debited | |
| 6. |
Which of the following best describes term life insurance? |
| A. | The insured pays a premium for a specified number of years. |
| B. | The insured is covered during his or her entire lifetime. |
| C. | The insured pays the premium until his or her death. |
| D. | The insured can borrow or collect the cash value of the policy. |
| Answer» B. The insured is covered during his or her entire lifetime. | |
| 7. |
when a purchase on account is made the invoice becomes |
| A. | debt |
| B. | credit |
| C. | both A & B |
| D. | None of the above |
| Answer» B. credit | |
| 8. |
What type of account is accounts receivable? |
| A. | Asset |
| B. | Liability |
| C. | Expense |
| D. | Equity |
| Answer» B. Liability | |
| 9. |
What determines the value of an item? |
| A. | the capital required to build the factory |
| B. | the unlimited wants of the consumers |
| C. | the resources consumed in production |
| D. | the amount of goods that are produced |
| Answer» B. the unlimited wants of the consumers | |
| 10. |
The APC is calculated as |
| A. | consumption/income |
| B. | change in income/change in consumption |
| C. | income/consumption |
| D. | change in consumption/change in income |
| Answer» B. change in income/change in consumption | |
| 11. |
The largest component of National Income in India is ____ ? |
| A. | Service Sector |
| B. | Industrial Sector |
| C. | Agriculture Sector |
| D. | Trade Sector |
| Answer» B. Industrial Sector | |
| 12. |
Unearned revenue is classified as |
| A. | Liability |
| B. | Owner's equity |
| C. | Asset |
| D. | Income |
| Answer» B. Owner's equity | |
| 13. |
The journal entry to record a credit sale is |
| A. | Accounts Receivable |
| B. | Accounts Payable |
| C. | Both A & B |
| D. | None of the above |
| Answer» B. Accounts Payable | |
| 14. |
The principle of diversification tells us that |
| A. | spreading an investment across many diverse assets will eliminate some of the total risk |
| B. | concentrating an investment in two or three large stocks will eliminate all of the unsystematic risk |
| C. | spreading an investment across five diverse companies will not lower the total risk |
| D. | concentrating an investment in three companies all within the same industry will greatly reduce the systematic risk |
| Answer» B. concentrating an investment in two or three large stocks will eliminate all of the unsystematic risk | |
| 15. |
The accounting process involves all of the following except |
| A. | identifying economic transactions that are relevant to the business |
| B. | analyzing and interpreting financial reports |
| C. | communicating financial information to users by preparing financial reports |
| D. | recording nonquantifiable economic events |
| Answer» C. communicating financial information to users by preparing financial reports | |
| 16. |
Other things the same, when the interest rate rises |
| A. | people would want to lend less, making the supply of loanable funds decrease. |
| B. | people would want to lend less, making the quantity of loanable funds supplied decrease. |
| C. | people would want to lend more, making the supply of loanable funds increase. |
| D. | people would want to lend more, making the quantity of loanable funds supplied increase. |
| Answer» E. | |
| 17. |
On a bank reconciliation, deposits in transit are |
| A. | added to the book balance |
| B. | added to the bank balance |
| C. | deducted from the book balance |
| D. | None of the above |
| Answer» C. deducted from the book balance | |
| 18. |
In a general sense, "cash flow" can be said to equal |
| A. | operating income less taxes |
| B. | operating income after taxes minus depreciation |
| C. | operating income less taxes plus depreciation |
| D. | operating income before depreciation and taxes plus depreciation |
| Answer» C. operating income less taxes plus depreciation | |
| 19. |
Invoice is an example of |
| A. | Accounts Receivable |
| B. | Accounts Payable |
| C. | Both A & B |
| D. | None of the above |
| Answer» B. Accounts Payable | |
| 20. |
Goods that are excludable include both |
| A. | public goods and common resources |
| B. | common resources and private goods |
| C. | natural monopolies and public goods |
| D. | private goods and natural monopolies |
| Answer» E. | |
| 21. |
Credit sales are recorded as |
| A. | Accounts Receivable |
| B. | Accounts Payable |
| C. | Both A & B |
| D. | None of the above |
| Answer» B. Accounts Payable | |
| 22. |
'Equity schemes managed strong NAV gains, which boost their assets' was a news in some financial newspapers. What is the full form of the term NAV as used in above head lines ? |
| A. | Nil Accounting Variation |
| B. | New Asset Venture |
| C. | Net Accounting Venture |
| D. | Net Asset Value |
| Answer» E. | |
| 23. |
Assets minus liabilities equals |
| A. | Equity |
| B. | Net income |
| C. | Working capital |
| D. | Net assets |
| Answer» B. Net income | |