ACC501 Midterm Solved MCQs Lectures 1-22 with References

ACC501- Business Finance · Quizzes Mega File · Brave Heart Innocent Mishii · Quizzes From lec 1 to 22

Q2. Period costs include which of the following?

Selling expense

Raw material Direct labor Manufacturing overhead

Q3. Product costs include which of the following?

Selling expenses General expenses

Manufacturing overhead Administrative expenses

Q4. Financial policy is evaluated by which of the following?

Debt-equity ratio

Q5. Cash flow from assets involves which of the following component(s)?

Operating cash flow Capital spending

Change in net working capital

6. Which of the following refers to the cash flows that result from the firm’s day-to-day

activities of producing and selling?

Operating Cash Flows

Investing Cash Flows Financing Cash Flows

Q7. Finance is vital for which of the following business activity (activities)?

Marketing Research Product Pricing

Design of marketing and distribution channels

8. Which of the following costs are reported on the income statement as the cost of goods

sold?

Product cost

Period cost

Both product cost and period cost

Neither product cost nor period cost

9. Standard Company had net sales of Rs. 750,000 over the past year. During that time, average receivables were Rs. 150,000. Assuming a 365-day year, what was the average collection period?

5 days

36 days 48 days

73 days

750000/150000=5 365/5=73days