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Accounting MCQs with Answers

The formula to calculate return on investment, according to profitability analysis in DuPont method is ____________?

April 20, 2025 by admin

A. return on sales * investment turnover B. return on sales + investment turnover C. return on sales – investment turnover D. investment turnover + residual income

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If the current assets are $856000 and the working capital is $654500, then the current liabilities will be ___________?

April 20, 2025 by admin

A. $501,500 B. $401,500 C. $201,500 D. $301,500

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The costs that are not incorporated in accounting records, but are recognized in different situations are classified as ___________?

April 20, 2025 by admin

A. congruent costs B. imputed costs C. operating costs D. transfer costs

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If after-tax operating income is $185000, weighted average cost of capital is 11%, total assets are $485000 and total liabilities are $367000, then economic value added would be __________?

April 20, 2025 by admin

A. $142,020 B. $172,020 C. $162,020 D. $152,020

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The measures that analyze the performance of a company, such as residual income, economic value added and customer satisfaction are collectively called ____________?

April 20, 2025 by admin

A. interactive control systems B. belief systems C. boundary systems D. diagnostic control systems

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The return on sales is multiplied to investment turnover to calculate ___________?

April 20, 2025 by admin

A. residual income B. return on investment C. return on sales D. investment turnover

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The sum of working capital and current liabilities is equal to _____________?

April 20, 2025 by admin

A. imputed assets B. residual assets C. current assets D. nominal assets

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The system in an organization, which defines behavior standards and code of conduct is known as ___________?

April 20, 2025 by admin

A. interactive control system B. belief system C. boundary system D. diagnostic control system

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The return on investment is also known as _____________?

April 20, 2025 by admin

A. accrual accounting rate of return B. accounting rate of return C. nominal rate of return D. both a and b

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If the required rate of return is 13%, operating income is $375000 and the total investment is $2650000, then the residual income would be ____________?

April 20, 2025 by admin

A. $30,500 B. $20,500 C. $25,500 D. $32,500

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