Accounting MCQs Part 7 Test Preparation Online Quiz Answers Free

61. Expenses such as rent and depreciation of a building are shared by several departments these are?

A. Direct expenses
B. Joint expenses
C. Indirect expenses

D. All of the above

62. For preparing balance sheets prepaid expenses are shown as part of?

A. Liability
B. Equities
C. Assets
D. None of these

63. Economic resources of a business that are expected to be of benefit in the future are referred to as?

A. Liabilities
B. Owner’s equity
C. Withdrawals
D. Assets

64. The payment of rent each month for office space would?

A. Decrease total assets
B. Increase liabilities
C. Increase owner’s equity
D. None of these

65. Net income plus operating expenses is equal to?

A. Net sales
B. Cost of goods available for sale
C. Cost of goods sold
D. Gross profit

66. A quantitative expression of management objectives is an?

A. Organizational chart
B. Management chart
C. Budget
D. Procedural chart

67. The time lag between indenting and receiving material is called?

A. Idle time
B. Stock out time
C. Lead time

D. None of these

68. Productivity means?

A. All units produced
B. Good units produced

C. The ability to produce
D. None of these

69. Short-term loan can be described as?

A. If the period is three years
B. If the period is less than one year
C. If the period is over one year

D. None of above

70. Inventory turnover is calculated as under?

A. Gross profit/Closing Inventory
B. Sales/Opening Inventory
C. Cost of Goods sold/Closing Inventory

D. None of these