181. A cost center is
A. A unit of production in relation to which costs are ascertained
B. A location which is responsible for controlling direct costs
C. Any location or department which incurs cost
D. Part of the factory overhead system by which costs are gathered

182. A fixed cost
A. May change in total when such change is not related to changes in production
B. Will not change in total because it is not related to changes in production
C. Is constant per unit for each unit of change in production
D. May change in total, depending on production with the relevant range

183. The time lag between indenting and receiving material is called
A. Lead time
B. Idle time
C. Stock out time
D. None of these

184. Depreciation is based on
A. Economic life of asset
B. Declared life of asset by supplier
C. Normal life of asset
D. None of these

185. Random sampling in auditing means
A. Selection through scientific sampling approach
B. Selection through convenience sampling
C. None of these

186. Acid test is the same as
A. Quick test
B. Liquid test
C. None of these

187. Acid Test Ratio is calculated as under
A. Current Assets/Current Liabilities
B. Fixed Assets/Current Liabilities
C. Liquid Assets/Current Liabilities
D. None of these

188. The stage under which transactions are recorded chronologically in the books of accounts is called
A. Summarizing
B. Classifying
C. Recording
D. None of these

189. Book-keeping is mainly concerned with
A. Recording of a financial data relating to business transactions
B. Designing the systems in recording, classifying, summarizing the recorded data
C. Interpreting the data for internal and external users
D. None of these

190. The discount account is a
A. Personal account
B. Real account
C. Asset account
D. Nominal account

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