Accounting Skills Test Question And Answers

ACCOUNTING  Skill Test MCQs

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Question:

What is the accounting objective which best relates to the MACRS method?

 a.        Income Smoothing

b.         Profit Maximization

c.         Tax Minimization

d.         None of the above

                       

 Question:

What statements are required of a Non-Profit organization?

a.         statement of financial position, statement of cash flows, and statement of activity and changes in net assets

b.         Bank Statements

c.         Cash Flows and Income Statement

d.         Changes in retained earnings, statement of cash flows, income statement

                       

 Question:

Which of the following is used by the FASB in the selection of acceptable accounting principles?

a.         Conservatism

b.         Matching

c.         Materialism

d.         Conceptual Framework

                       

                     

           

  Question:

How are services donated by a CPA accounted for by a non-profit organization?

a.         Dr: Expenses, Cr: Revenue

b.         Dr: Revenue, Cr: Liability

c.         Dr: Expenses, Cr: Assets

d.         Dr: Revenue, Cr: Expenses

                       

 Question:

Which of the following is a method of accounting for the exploration costs of a mineral resource that would best attain the objective of income tax accounting?

a.         Expense in total when incurred

b.         Capitalize only the costs related to mineral deposits

c.         Capitalize all costs associated with productive as well as non-productive mineral deposits

d.         None of the above

                         

  Question:

How should a firm compensating its employees by granting them the option to purchase its shares report it?

a.         Merely disclose the cost of those grants

b.         Charge that cost as expense for the period during which it makes the grant

c.         Choose either of the options a and b

d.         Neither a nor b

 Question:

For which of the following would the use of the straight-line method of amortization be acceptable?

a.         Building

b.         Patent

c.         Goodwill

d.         All of the above

 Question:

What is the acronym for the organization that promotes international harmonization of accounting standards?

a.         IASB

b.         FASB

c.         SEC

d.         IRS

                       

 Question:

What is the accounting objective which best relates to the expensing the cost of employee stock options?

a.         Accurate Presentation

b.         Income Smoothing

c.         Conservatism

d.         Profit Maximization

                       

 

 Question:

What is the acronym for the agency authorized by the U.S. Congress to regulate, among other things, the financial reporting practices of most public corporations?

a.         SEC

b.         IASC

c.         FASB

d.         GAAP

                       

 

 Question:

What is the accounting objective which best relates to the Operating Method (accounting for leases) followed by the lessor?

a.         Conservatism

b.         Accurate Presentation

c.         Income Smoothing

d.         None of the above

                         

 Question:

What is the doctrine that the firm should account for a given set of operations so as to make reported net income as large as possible known as?

a.         Conservatism

b.         Quality of Earnings

c.         Profit Maximization

d.         Matching

                       

 

 Question:

Companies of what size have been impacted the most by the SOX from a cost perspective?

a.         Mid-sized companies feel the impact the most

b.         There is no correlation between company size and the cost of implementing the provisions of the Act

c.         The larger companies as the larger the company, the more it has to pay to implement the provisions of the Act

d.         The smaller companies as the cost of implementing the provisions of the Act does not decrease proportionally with the size of the company

                       

 Question:

What is the accounting objective which best relates to the double declining balance method?

a.         Conservatism

b.         Income Smoothing

c.         Profit Maximization

d.         Tax Minimization

                         

 Question:

What is the phrase which, though there is no agreement on its meaning, implies to most analysts that the  quality of earnings improves with the likelihood of recurrence?

a.         Quality of Financial Position

b.         Quality of Earnings

c.         Least and Latest Rule

d.         Accurate Presentation

                       

 Question:

What change was made in regarding the penalization of the whistleblowers (people who alert the authorities about the illegal activities in a corporation) by the companies?

a.         They are now themselves subject to fraud charges for uncovering the crimes

b.         They are put under witness protection

c.         They are offered a transfer to a new department

d.         They are now protected against retaliation by the company in order to encourage employees to bring the wrong doings of the companies to light

                       

 

 Question:

What value should a contribution be accounted for at?

a.         Historical value

b.         Fair value

c.         Market value

d.         Value determined by auditors

                       

 Question:

What is the accounting objective which best relates to the completed contract method?

a.         Income Smoothing

b.         Profit Maximization

c.         Tax Minimization

d.         None of the above

                       

 Question:

What is the accounting objective which best relates to the weighted average inventory method?

a.         Tax Minimization

b.         Income Smoothing

c.         Profit Maximization

d.         None of the above

 Question:

Which of the following is not an example of the accounting practices followed by a firm having wide flexibility in the choice of alternative methods for financial reporting?

a.         Accounting for depreciation

b.         Accounting for investment in common stocks

c.         Accounting for inventories

d.         None of the above

 Question:

Which of the following must generally be used for financial reporting if it is used for income tax reporting?

a.         FIFO

b.         LIFO

c.         NIFO

d.         Installment sales method

                       

 Question:

What entry would a donor make when giving a cash donation to a charity, where the donor retains the right to revoke the contribution?

a.         Dr: Cash, Cr: Refundable Advance to Charity

b.         Dr: Refundable Advance to Charity, Cr: Cash

c.         Dr: Expense, Cr: Cash

d.         Dr: Revenue, Cr: Expense

                       

 

 Question:

What is the accounting objective which best relates to the expensing of R&D costs?

a.         Income Smoothing

b.         Accurate Reporting

c.         Conservatism

d.         Profit Maximization

             

 Question:

What is the accounting objective which best relates to the capital lease by the lessee?

a.         Tax Minimization

b.         Profit Maximization

c.         Accurate Presentation

d.         None of the above

 Question:

What change was made by the Act regarding the authority competent to sign the company tax returns?

a.         Only the CEO now has the authority to sign the company tax returns

b.         Any employee can now sign a tax return

c.         Only the firm's CPA can sign the tax returns

d.         Only the person who has prepared the return can sign it

                       

 

 Question:

Which of the following courses of action should a firm take in order to minimize the present value of income tax payments?

a.         Use the LIFO inventory method instead of FIFO durating periods of rising prices

b.         Depreciate fixed assets on the straight-line method rather than the MACRS method

c.         Capitalize exploration costs instead of expensing them

d.         All of the above

                       

 Question:

What is the reporting objective that calls for the anticipation of all losses incurred but defers the recognition of gains or profits until they are realized in arm's length transactions?

a.         Conservatism

b.         Materialism

c.         Matching

d.         Smoothing

 Question:

What kind of organization issuing securities would NOT have to register them with the SEC?

a.         A private IT firm

b.         The government

c.         A publicly traded book publisher

d.         A firm with no revenue

                       

 Question:

What is the accounting objective which best relates to the Lower of Cost or Market Price method?

a.         Accurate Presentation

b.         Tax Minimization

c.         Profit Maximization

d.         Conservatism

                       

 

 Question:

Which FASB sets the requirements for accounting for Non-Profit organizations?

a.         FASB SFAS 999

b.         FASB SFAS 100

c.         FASB SFAS 99

d.         FASB SFAS 117

                       

 

 Question:

What are forms 10K and 10Q referred to as?

a.         Periodic Filings

b.         Financial Statements

c.         Information Returns

d.         Tax Returns

 Question:

Which of the following methods is normally considered to be acceptable for financial reporting?

a.         MACRS

b.         Lower of cost or market price for inventories

c.         Direct write off of uncollectible accounts

d.         Capitalization of R&D Costs

 Question:

What are the 3 types of Health Care Organizations for accounting purposes?

a.         Incorporated, Limited Liability, Sole Proprietor

b.         Asset based, Liability based, Expense based

c.         Investor-owned, Non-Profit, Governmental

d.         Private, Public, LLC

                       

 Question:

What is form 8-K?

a.         Monthly filing with the SEC reporting director salaries

b.         As needed filing to disclose any significant issues or changes

c.         Quarterly financial reports filed with the SEC

d.         Annual financial reports filed with the SEC

                       

 

 Question:

What is 'paying the least amount of taxes as late as possible within the law to minimize the present value of tax payments for a given set of operations' a description of?

a.         Profit Maximization

b.         Least and Latest Rule

c.         Conservatism

d.         Income Smoothing

                       

 Question:

For which of the following accounts would the use of 'the lower of cost or market price' principle be acceptable?

a.         Inventory

b.         Land

c.         Prepaid rent

d.         All of the above

                       

 Question:

What is Form 10-K?

a.         Monthly filing with the SEC reporting salaries to the directors

b.         As needed filing to disclose any significant issues or changes

c.         Quarterly financial reports filed with the SEC

d.         Annual financial reports filed with the SEC

                       

 

 Question:

What is the phrase with no agreement on meaning which implies to most analysts that earnings quality increase with the likelihood of recurrence?

a.         Quality of financial position

b.         Quality of earnings

c.         Conservatism objective

d.         None of the above

       

 Question:

What factors affect the balance sheet, given the articulation of the income statement with the balance sheet and the factors that imply high or low quality of earnings?

a.         Quality of Financial Position

b.         Profit Maximization

c.         Quality of Earnings

d.         Conceptual Framework

                       

 Question:

What is the accounting objective which best relates to the percentage of sales method for uncollectible accounts?

a.         Accurate Presentation

b.         Tax Minimization

c.         Profit Maximization

d.         Conservatism

                       

MS WORD 2010 MCQs WITH ANSWERS

If you want to create a citation and fill in the source information later, you should:

A. insert a caption.

b. add a placeholder.

c. add a new source.

d. insert a cross-reference.

A

To select vertical blocks of text, you would hold down which key while dragging the mouse?

a. Alt

b. Ctrl

c. Shift

b

If I do not want the contents of one of my fields to automatically update, I would have to do which of the following?

a. Lock the field.

b. Protect the field.

c. Make the field hidden.

d. Turn field shading off.

C

Sarah receives a company turnover summary in the form of an embedded Excel chart (as shown in the above image) in a Microsoft Word 2010 document from her boss. Her boss wants the chart to be sent over to the Public Relations department with a line in the chart showing the variations in the company's turnover, as well as a prediction for the next 2 years. The turnover values for each year also need to be sent separately in an Excel file. What should Linda do to achieve this in the shortest possible time?

a. Take a screenshot of the chart and ask a designer to draw a line showing the trends. She can then type the data manually into an excel sheet.

b. Import the chart into an Excel sheet and change the formatting of the chart to a line chart. She can then copy the corresponding fields into a separate Excel file and send it over.

c. Change chart type to a line chart and type all the values into an Excel file.

d. Use the Trendline feature to create a line showing the trends and copy the data from the Excel sheet field which opens up on clicking Edit Data.

C

You want to add an image as the first character in your paragraph. Which type of text wrapping treats your graphic as if it were a character?

a. Through

b. Square

c. In Font of Text

d. In Line with Text

b

Roger was editing a Word document, when his mobile phone rang. By mistake, some button got clicked on the Word 2010 Ribbon area, so that the document's appearance changed from Image A to Image B. Which of the following options could be the cause?

a. Margins were activated on the document.

b. Tables with maximum number of rows and columns was added to the document.

c. Gridlines were enabled from the Page Layout Tab.

d. A preset Watermark was inserted.

B

A particular chart layout can be applied to a chart only if:

a. it has been saved as a template in the Charts Template folder.

b. it has been set as the default chart.

c. it is a 2D chart.

d. it is a 3D chart.

C

hoose the INCORRECT statement:

a. Only high-risk documents from an uncertain location are opened in Read-Only view.

b. All documents that contain macros open in Read-Only view.

A

Microsoft Word 2010 has enabled ligatures for which of the following fonts?

a. Open Type fonts

b. True Type fonts

a

With which chart type(s) is the "Depth Gridlines" option available?

a. Bubble chart

b. Line chart

c. True 3D chart

d. All of the above

b

Which of the following is NOT an option under File > Print > Microsoft Document Image Writer?

a. PDF

b. TIFF

c. MDI

c

I want to use the AutoCaption feature for several elements in my document. What type of file format is NOT available in the AutoCaption dialog box?

a. BMP

b. PDF

c. XLS

d. JPG

c

Question:

What view must be used when inserting a subdocument?

a. Print Layout

b. Web Layout

c. Outline

d. Full Screen Reading

b

tion:

Josh is creating a collage for his college project. He has an image - Image A - which he wants to show in different color themes so as to represent different moods in the collage (Images B, C and D). How can Josh achieve this in Microsoft Word 2010?

a. By using Format Painter.

b. By altering the Line Color.

c. By using the Recolor option under Format Picture.

d. This can't be achieved in Microsoft Word 2010.

C

Which of the following in NOT a type of Section Break?

a. Next Page

b. Linked

c. EvenPage

d. Continuous

d

Samantha is given an article to proofread. The article runs into hundreds of pages. She is asked to use hyphens to allow words in the article to break between two lines. There is an option in Microsoft Word 2010 which can be used to achieve this result with a single click. Please identify it.

a. Breaks

b. Indentation

c. Orientation

d. Hyphenation

c

Question:

Which of the following options allows you to arrange drawings in your document so they may be moved, kept together, aligned, or formatted more easily?

a. Insert Clip Art

b. Insert Flowchart

c. Insert SmartArt

d. Insert Quick Parts

e. Insert Drawing Canvas

b

Question:

When you apply a theme to a Microsoft Word 2010 document, all the tables, charts, SmartArt graphics, shapes, and other objects are updated to complement one another.

a. True

b. False

b

Question:

My table heading row is not repeating on subsequent pages though I have properly set the header row to repeat. What is one problem that might be causing this behavior?

a. "Allow row to break across pages" is unchecked.

b. My top and bottom margins are too small.

c. There are hard page breaks in my table

a

Under Insert > Date & Time, you can create custom formats for date and time, and set them as default.

a. True

b. False

Question:

Martha is writing an article on time management. After typing some text, as shown in Image A, she goes to the other room to make a phone call. On returning, she finds that her 8-year-old son changed some settings in the document, saved and closed the file, so that on re-opening it looks as shown in Image B. What should Martha change to make the document look the same as before?

a. Select the paragraph and remove the numbering.

b. Set the "Line Numbers" to None under the Page Layout controls.

c. Select the paragraph and re-apply numbering.

d. Copy the complete text to notepad and then paste it back

Which among the following chart types do not have axes?

a. Bar charts

b. XY (Scatter) charts

c. Doughnut charts

d. Area charts

Question:

Consider the following scenario:

A table cell contains text. You place your cursor in that cell and split it into two columns. The resultant text will:

a. be spread across both cells.

b. be deleted.

c. remain intact in the first cell and the second cell will be empty

Question:

How many items can be maintained on the clipboard at one time?

a. One

b. Up to 24

c. Unlimited

d. Up to 100

Question:

When using the booklet-printing feature, the term "gutter" refers to the space between page content and the fold in the middle of the paper where you would normally bind pages together.

a. True

b. False

To convert an existing picture to the shape of a star, which of the options will be useful?

a. Picture Effects

b. Insert Shapes

c. Picture Layout

d. Crop to Shape

Question:

Why would you use content controls in a document?

a. To get information from another source and have it appear at a specific place in a document.For example, the customer data automatically appears when you create a new invoice.

b. To create a document and restrict what people can do with it. For example, you create a document that contains legal language, and you want to ensure people don't accidentally change or delete any of its text.

c. To create structured regions of a document that people fill out. For example, the cover page of the proposal can't be changed except by filling out the title and author.

d. All of the above

e. None of the above

Question:

Anna selects a paragraph in a Microsoft Word 2010 file. On the horizontal ruler, she drags the Hanging Indent marker to the left. What will happen?

a. The whole paragraph will get indented to the left.

b. The first line will get indented to the left.

c. All but the first line will get indented to the left.

Question:

Which of the following protects a document from changes in Microsoft Word 2010?

a. Restrict Editing

b. Encrypt with Password

c. Add a Digital Signature

d. Mark as Final

e. All of the above

Question:

Which among the following is not true regarding the use of a pie chart?

a. A pie chart could be used when there is only one data series to be plotted.

b. A pie chart could be used when the data points in a pie chart are displayed as a percentage of the whole pie.

c. A pie chart could be used when none of the values that need to be plotted on the chart is negative.

d. A pie chart should be used when there are more than seven categories.

Question:

To insert a new citation to a specific book in a Microsoft Word 2010 document, you should select:

a. References" > "Style".

b. References" >"Insert Citation" >"Add New Source.

c. References" >"Insert Citation" >"Add New Placeholder.

d. None of the above

Question:

Which among the following options represents Legend entries in the given picture?

a. A

b. B

c. C

d. None of the above

Question:

The Insert Picture option allows you to insert:

a. Insert "Link to File"

b. Insert "File"

c. "Insert and Link" to a File

Question:

You want to select all instances of a specific style used in your document. However, the Select All command in the Styles pane is not available (grayed out). You must enable:

a. Formatting marks

b. Keep track of formatting

c. Linked styles

Applying a theme to your document affects all content except tables.

a. True

b. False

Question:

What is the function of Widow/Orphan control in Microsoft Word 2010?

a. It is a feature that prevents single lines of paragraphs from appearing on a separate page from the rest of the paragraph.

b. It is a feature which indents only the first line of a paragraph.

c. It is a feature used to change the layout or formatting of a page or pages.

d. It is feature which is used to insert ghosted text behind the content of the page.

Question:

You need to insert an image of only part of a web page that is currently open in your browser. You would use:

a. Insert, Screenshot

b. Insert, Screen Clipping

c. Print Screen

d. Insert, Image

Question:

You need to email a picture to your co-workers, but the file is too large. Where on the Picture Tools ribbon would you find the option to minimize the file size for email sharing purposes:

a. Corrections

b. Change Picture

c. Compress Picture

d. Picture Layout

Question:

If a table cell is vertically split into two separate cells using the Draw Table option, any existing text in the cell will be split up and text will appear in both of the two newly created cells.

a. True

b. False

Question:

In Microsoft Word 2010, "Keep lines together" paragraph formatting:

a. works well for paragraphs within a table if "Allow row to break across pages" is also selected.

b. automatically enables the text rows to break across pages.

c. does not work for paragraphs within a table if "Allow row to break across pages" is also selected.

d. always works for paragraphs within a table