Accounting MCQ Questions and Answers Quiz

41. which EC directive standardized the form of accounts to which financial reports for external users must conform?

  1. First
  2. Second
  3. Eighth
  4. Fourth

42. The account format that displays debits, credits, balances, and headings.

  1. General journal
  2. General ledger
  3. T-account
  4. Ledger account

43. A Low Return on Investment Ratio (ROI) indicates

  1. Improper utilization of resources
  2. Over investment in assets
  3. Both A and B
  4. None of the above

44. Which financial statement displays the revenues and expenses of a company for a period of time?

  1. Income Statement
  2. Balance Sheet
  3. Cash Flow Statement
  4. Statement of Stackholders Equity

45. Which financial statement uses the expanded accounting equation?

  1. Income statement
  2. Balance sheet
  3. Cash flow statement
  4. Statement of stockholders equity

46. Which of the following would not be found on a standardized balance sheet?

  1. Inventory
  2. Accruals and Deferred Income
  3. Extraordinary Charges
  4. Creditors due and payable after more than one year

47. Following is (are) the characteristic(s) of a budget

  1. It outlines projected activities
  2. Expressions are made in quantitative terms
  3. It is for a fixed period
  4. All of the above

48. Any written evidence in support of a business transaction is called

  1. Journal
  2. Ledger
  3. Ledger posting
  4. Voucher

49. The ratios that refer to the ability of the firm to meet the short term obligations out of its short term resources

  1. Liquidity ratio
  2. Leverage ratios
  3. Activity ratios
  4. Profitability ratios

50. The measure of how efficiently the assets resources are employed by the firm is called

  1. Liquidity ratio
  2. Leverage ratios
  3. Activity ratios
  4. Profitability ratios
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