If you need assistance preparing for accounting exams and tests, Gurumcqs.com provides accounting MCQs with answers and explanations. These MCQs are beneficial for students pursuing MBA, MMS, BBA, Bcom, Mcom, and MCA. They are also valuable for NTS, FPSC, KPPSC, ETEA, Senior Auditor, Junior Auditor, Accountant, and other test preparations. The Accounting MCQs cover a variety of topics including Principles of Accounting, Accounting Equations, Journals, Ledger, Banking Transactions, Accounting Basics, Accounting for Pensions, Bill of Exchange, Changes in Accounting Principles, Capital & Revenue, Final Accounts, Cost Management, Cost Measurement, Financial Accounting, Financial Decision Making, Financial Management, Financial Reporting, Financial Statements, Current Assets, Adjustments, and more. Additionally, you can find marketing MCQs with answers on the platform.

121. The most common imprest system is the ________ system?
A. Petty cash
B. Cash book
C. Cash receipt
D. Discount

122. Which English alphabet is similar to the shape of an account?
A. I
B. T
C. H
D. None

123. When production is equal to sales, which of the following is TRUE?
A. No change occurs to inventories for either use absorption costing or variable costing methods
B. The use of absorption costing produces a higher net income than the use of variable costing
C. The use of absorption costing produces a lower net income than the use of variable costing
D. The use of absorption costing causes inventory value to increase more than they would though the use of variable costing

124. An average cost is also known as________?
A. Variable cost
B. Unit cost
C. Total cost
D. Fixed cost

125. Costs that change in response to alternative courses of action are called___________?
A. Relevant costs
B. Differential costs
C. Target costs
D. Sunk costs

126. The total cost incurred in the operation of a business undertaking other than the cost of manufacturing and production is known as________?
A. Direct cost
B. Variable cost
C. Commercial cost
D. Conversion cost

127. Consider the following data for a company during the month of June 2012 Budgeted hours 4,000 Standard hours for actual production 4,400 Maximum possible hours in the budget period 4,800 Actual hours 3,800 The activity ratio of the company during the month is
A. 111%
B. 120%
C. 95%
D. 117%

128. Which of the following bases is not appropriate for apportionment of Transport department‘s cost ?
A. Crane hours
B. Crane value
C. Truck Mileage
D. Truck value

129. The cost of obsolete inventory acquired several years ago, to be considered in a keep vs. disposal decision is an example of :
A. Uncontrollable cost
B. Sunk cost
C. Avoidable cost
D. Opportunity cost

130. Budgeted sales for the next year is 5,00,000 units. Desired ending finished goods inventory is 1,50,000 units and equivalent units in ending W-I-P inventory is 60,000 units. The opening finished goods inventory for the next year is 80,000 units, with 50,000 equivalent units in beginning W-I-P inventory How many equivalent units should be produced?
A. 5,80,000
B. 5,50,000
C. 5,00,000
D. 5,75,000