30 MULTIPLE CHOICE QUESTIONS BBA FINANCIAL ACCOUNTING
1. Which of the following is not a branch of accounting?
a) Financial accounting
b) Cost accounting
c) Management accounting
d) Non-financial accounting
2. What is the main purpose of financial accounting?
a) Organize financial information
b) Provide useful, financial information to outsiders
c) Keep track of company expenses
d) Minimize company taxes
3. Identifying measuring and communicating economic information to the uses is known as
a) Cost accounting
b) Financial accounting
c) Management accounting
d) Forensic accounting
4. Expenses, loss, cost center, profit center. Cost unit and cost driver are the item of
a) Cost concept
b) Management concept
c) Financial concept
d) Social concept
5. Assets account have what time of balance?
a) Debit
b) Credit
c) Contra
d) All of the above
6. High-low point method and least square method are the method of calculating
a) Segregating cost
b) Financial cost
c) Fixed cost
d) All of above
7. Net income equals:
a) Total revenue minus cost of goods sold
b) Total revenue minus total expenses
c) Operating revenue minus operating expenses
d) Revenue minus expenses plus income expenses
8. High-low point method is also known as:
a) Financial costing
b) Tow point method
c) Least square method
d) None of the above
9. Copyrights, patents, and trademarks are,
a) Current assets
b) Fixed assets
c) Intangible assets
d) Investment
10. Net profit is computed in,
a) Profit and loss account
b) Profit and loss appropriation
c) Trading account
d) Balance sheet
11. The following is not type of liability
a) Short term
b) Fixed
c) Current
d) Contingent
12. How many steps for calculating High-low point method?
a) 3 step
b) 4 step
c) 5 step
d) 2 step
13. The cost which are neither are perfectly variable nor absolutely fixed is known as:
a) Variable cost
b) Fixed cost
c) Semi-variable cost
d) Both(a) and (b)
14. How to calculate new carrying cost?
a) Old purchase price × percentage of carrying cost
b) New purchase price × percentage of carrying cost
c) Old purchase price × discount
d) None of the above
15. Which one of the following is not an external use of accounting information?
a) Investor
b) Creditors
c) Managers
d) Customer
16. Which is known as father of account?
a) Leonardo Da Vinci
b) Fra Luca Pacioli
c) Al Khawarizmy
d) Al Mazendarany
17. What we do appreciation in balance sheet?
a) Less in fixed cost
b) Add in fixed cost
c) Less in current assets
d) Add in machinery
18. Which of the following would not be included in balance sheet?
a) Sales
b) Cash
c) Account payable
d) Account receivable
19. What is carriage inward?
a) Total cost
b) Manufacturing cost
c) Transportation cost
d) All of the above
20. is the volume of sales where there is no profit no loss.
a) Breakeven point
b) Variable cost
c) Volume cost
d) Contribution margin
21. What is breakeven ratio?
a) The ratio between the breakeven ratio and sales
b) The ratio between the breakeven sales and actual sales
c) Both(a) and (b)
d) None of the above
22. MCV is a sum of
a) MPV +MUV
b) MUV + MPV
c) MYV +MMV
d) MMV +MUV
23. Actual sales – BEP units is
a) Contribution margin
b) Margin of safety
c) Profit
d) BEP in RS.
24. a function of total time and rate per hour.
a) Labour rate variable
b) Labor cost variable
c) Labour efficiency variable
d) Labour yield variable
25. is an estimation of the quantity of goods to be manufactured during the budget period.
a) Sales budget
b) Production budget
c) Government budget
d) Corporate budget
26. A budget that is prepared under different level of activities is known as,
a) Fixed budget
b) Flexible budget
c) Variable budget
d) Production budget
27. The expenses are proportionality distributed to different department is called,
a) Allocation
b) Apportionment
c) Reciprocal
d) None of the above
28. What is re-order level?
a) Minimum quantity of materials
b) Is the quantity of material that is purchase each time
c) Normal or moderate stock level
d) It is the storekeeper initiates the purchase requisition for each supplies of material.
29. Which of these best explains fixed assets?
a) Are bought to be used in the business
b) Are expensive items bought for the business
c) Are items which will not wear out quickly
d) Are of long life and are not purchased specifically for resale
30. Gross profit is,
a) Cost of goods sold + Opening stock
b) Excess of sales over cost of goods sold
c) Sales fewer Purchases
d) Net profit fewer expenses of the period