Accounts Payable MCQs : This section focuses on the "Accounts Payable". These Multiple Choice Questions (MCQs) should be practiced to improve the Accounts Payable skills required for various interviews (campus interview, walk-in interview, company interview), placement, entrance exam and other competitive examinations.
Question 1
A Credit may signify a
A. Increase in the liability account
B. Decrease in an asset account
C. Increase in the capital stock account
D. All of the above
Question 2
A debit signifies a decrease in
A. revenues
B. liability
C. owner's equity
D. All of the above
Question 3
A distinguishing feature of managerial accounting is
A. general-purpose reports
B. very detailed reports
C. quarterly and annual reports
D. external users
Question 4
Accounts that normally have debit balances are
A. Assets,Expenses,and Common stock
B. Assets,Dividends,and Expenses
C. Assets,Expenses,and Revenues
D. All of the above
Question 5
Accrual accounting is used because
A. it provides a better indication of ability to generate cash flows than the cash basis.
B. it recognizes revenues when cash is received and expenses when cash is paid.
C. cash flows are considered less important.
D. All of the above
Question 6
Financial statements are prepared in the following order.
A. Income statement - Balance sheet - Statement of retained earnings
B. Income statement - Statement of retained earnings - Balance sheet
C. Balance sheet - Statement of retained earnings - Income statement
D. Statement of retained earnings - Balance sheet - Income statement
Question 7
Internal controls are concerned with
A. the extent of government regulations
B. preparing income tax returns
C. safeguarding assets
D. only manual systems of accounting
Question 8
Managerial Accounting is also called
A. Control accounting
B. Management accounting
C. Cost accounting
D. Both B & C
Question 9
Securities and Exchange Board of India (SEBI) is related to
A. Government of India
B. Banks
C. State Government
D. Share Market
Question 10
Select the correct statement regarding fixed costs.
A. Because they do not change, fixed costs should be ignored in decision making.
B. The fixed cost per unit decreases when volume increases.
C. The fixed cost per unit does not change when volume decreases.
D. The fixed cost per unit increases when volume increases.
Question 11
Standard deviation measures which type of risk?
A. Non diversifiable
B. Economic
C. Systematic
D. Total
Question 12
The chart of accounts is designed to
A. alphabetized the accounts to make reading easier for its financial statement users
B. summarize the transactions and determine their ending balances
C. meet the information needs of a company and other financial statement users
D. analyse the accounts and organize them in order of dollar amount to simplify the accounting information for users
Question 13
The first step in solving an Ethical Dilemma is to
A. identify the alternatives
B. identify an etical situation and ethical issues involved
C. weigh the impact of each alternative on various stakeholders.
D. recognize and analyze the principal elements in the situation.
Question 14
The primary purpose of life insurance is to provide
A. Safe investment avenue
B. financial protection to surviving dependents after the death of an insured
C. Tax rebates
D. Wealth accumulation
Question 15
What is the main function of international monetary fund ?
A. Help to solve Balance of Payment problems of member countries
B. Act as private sector lending arm of the World Bank
C. Finance investment loans to developing countries
D. Arrange international deposits from banks
Question 16
Which is the most accurate statement about trade?
A. Trade makes some nations better off and others worse off
B. Trading for a good can make a nation better off only if the nation cannot produce that good itself
C. Trade helps rich nations and hurts poor nations
D. Trade can make every nation better off
Question 17
Which of the following bonds has the greatest interest rate price risk?
A. a 10 year, 5% coupon bond
B. a 5 year, 5% coupon bond
C. a 5 year, 10% coupon bond
D. a 10 year, 10% coupon bond
Question 18
Which of the following is not a direct tax?
A. Sales tax
B. Corporation tax
C. Wealth tax
D. Estate tax
Question 19
Which of these investments may pay dividends?
A. Savings account
B. Stocks
C. Bonds
D. Certificates of deposit
Question 20
Which of these is an example of eminent domain?
A. a corporator forces public for sell their lands to him
B. a state forces people to sell their fields for building highway
C. Both A & B
D. None of the above
Question 21
Which tax is paid to a third party?
A. Indirect
B. Income
C. Flat
D. Direct