171. Under the diminishing balance method, depreciation amount is
A. Payment
B. Receipt
C. Expenditure
D. None of these

172. Users of accounting information include
A. The tax authorities
B. Investors
C. Creditors
D. All of these

173. The business form(s) in which the owner(s) is (are) personally liable is (are) the:
A. Partnership
B. Proprietorship
C. Corporation
D. Partnership and proprietorship

174. The investment of personal assets by the owner
A. Increases total assets and increases owner’s equity
B. Increases total assets only
C. Has no effect on assets but increases owner’s equity
D. Increase assets and liabilities

175. 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. Assets
D. Withdrawals

176. An owner investment of land into the business would
A. Decrease withdrawals
B. Increase owner’s equity
C. Increase liabilities
D. Decrease assets

177. A cash purchase of supplies would
A. Decrease owner’s equity
B. Increase liabilities
C. Have no effect on total assets
D. None of these

178. Quick assets include which of the following
A. Cash
B. Accounts Receivable
C. Inventories
D. Only (a) and (b)

179. 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

180. The measurable value of an alternative use of resources is referred to as
A. An opportunity cost
B. An imputed cost
C. A different cost
D. A sunk cost

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

Leave a Reply