721. An income statement encompasses which of the following?
A. Assets, Liabilities, Owners Equity
B. Expenses, Revenues, Net Income or Net Loss
C. Liquidity and Maturity
D. T-Charts, Balance Sheets and Trial Balances

722. A cost that changes with the number of units produced, but that can never be zero, is what kind of cost?
A. Mixed cost
B. Period cost
C. Variable cost
D. Product cost

723. Manufacturing overhead is allocated as what kind of cost?
A. Variable cost
B. Period cost
C. Product cost
D. Fixed cost

724. A cost that changes with the number of units produced and is zero when no units are produced is what kind of cost?
A. Period cost
B. Mixed cost
C. Variable cost
D. Product cost

725. A cost that remains unchanged across the relevant range of units produced is what kind of cost?
A. Period cost
B. Mixed cost
C. Fixed cost
D. Product cost

726. The costing system that tracks costs to a department or work group and assigns the cost to products produced by that department or work group is which kind of costing system?
A. Job order costing system
B. Process costing system
C. Activity based costing system
D. Backflush costing system

727. A costing system that tracks costs to a specific lot of a product is which kind of costing system?
A. Activity based costing system
B. Backflush costing system
C. Process costing system
D. Job order costing system

728. The costing system that initially assigns all costs to Cost of Goods Sold and then removes them to the appropriate inventory values is which kind of costing system?
A. Process costing system
B. Just in time costing system
C. Job order costing system
D. Backflush costing system

729. A few days ago, my friend came to me and asked for a loan. I lent him 10 dollars. How will I be recorded in my friend’s books of accounts? (My name is Victor)
A. Jason’s Loan account
B. Income account
C. Nobody’s Loan account
D. Victor’s Loan account

730. I helped to sell a piece of land and received some commission for it. Would commission received be credited or debited in my accounts?
A. Creditor
B. Credited
C. Debtor
D. Debited

NOTE
IF YOU THINK ANY OF THE MCQ ABOVE IS WRONG.
PLEASE COMMENT WITH CORRECT ANSWER AND ITS DETAIL EXPLANATION IN COMMENT BOX.
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