ACC501 Midterm Solved MCQs Mega File with References

Mega Quiz File · (ACC501) · by · Shahzad Sadiq · Special Thanks · to · Attock VU Group · VU Study Masti

(*Please correct, if your find any mistake*)

Q1. Which of the following issue is NOT covered by “Investment” area of finance?

Best mixture of financial investment

International aspects of corporate finance

Associated risks and rewards Pricing financial assets

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

Q6. 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

Q8. 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

Q9. 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

Q10. Which of the following terms refers to the use of debt financing?

Operating Leverage

Financial Leverage

Manufacturing Leverage