MCQ Collection
Japan MCQs
Practice Japan questions with answers and explanations.
Choose an option to check your answer.
A.
Profit plus tax
B.
Cash minus inventory
C.
Sales minus fixed assets
D.
Contribution margin equals sales revenue minus variable costs
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Correct Answer: D. Contribution margin equals sales revenue minus variable costs
Explanation:
Contribution first covers fixed costs and then profit.
Choose an option to check your answer.
A.
Sales minus fixed assets
B.
Profit plus tax
C.
Contribution margin equals sales revenue minus variable costs
D.
Cash minus inventory
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Correct Answer: C. Contribution margin equals sales revenue minus variable costs
Explanation:
Contribution first covers fixed costs and then profit.
Choose an option to check your answer.
A.
Revenue equals variable cost only
B.
Break-even occurs where total contribution equals fixed costs
C.
Inventory is fully sold regardless of cost
D.
Cash balance is zero
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Correct Answer: B. Break-even occurs where total contribution equals fixed costs
Explanation:
At break-even, operating profit is zero.
Choose an option to check your answer.
A.
Cash balance is zero
B.
Inventory is fully sold regardless of cost
C.
Break-even occurs where total contribution equals fixed costs
D.
Revenue equals variable cost only
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Correct Answer: C. Break-even occurs where total contribution equals fixed costs
Explanation:
At break-even, operating profit is zero.
Choose an option to check your answer.
A.
A material prior-period error is corrected using the method required by the applicable framework
B.
Materiality is irrelevant
C.
Errors are never disclosed
D.
It is treated as current revenue
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Correct Answer: A. A material prior-period error is corrected using the method required by the applicable framework
Explanation:
Error correction differs from changes in estimate.
Choose an option to check your answer.
A.
Materiality is irrelevant
B.
A material prior-period error is corrected using the method required by the applicable framework
C.
Errors are never disclosed
D.
It is treated as current revenue
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Correct Answer: B. A material prior-period error is corrected using the method required by the applicable framework
Explanation:
Error correction differs from changes in estimate.
Choose an option to check your answer.
A.
Materiality is irrelevant
B.
It is treated as current revenue
C.
A material prior-period error is corrected using the method required by the applicable framework
D.
Errors are never disclosed
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Correct Answer: C. A material prior-period error is corrected using the method required by the applicable framework
Explanation:
Error correction differs from changes in estimate.
Choose an option to check your answer.
A.
All later events are ignored
B.
All later events rewrite every account
C.
Events after the reporting period are adjusted or disclosed depending on whether they provide evidence about conditions at period end
D.
Disclosure is prohibited
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Correct Answer: C. Events after the reporting period are adjusted or disclosed depending on whether they provide evidence about conditions at period end
Explanation:
The distinction is between adjusting and non-adjusting events.
Choose an option to check your answer.
A.
Estimates never change
B.
A change in estimate is generally recognised prospectively unless the applicable standard requires otherwise
C.
It is always fraud
D.
It rewrites all past statements automatically
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Correct Answer: B. A change in estimate is generally recognised prospectively unless the applicable standard requires otherwise
Explanation:
New information can change estimates without being an error.
Choose an option to check your answer.
A.
A change in estimate is generally recognised prospectively unless the applicable standard requires otherwise
B.
It is always fraud
C.
It rewrites all past statements automatically
D.
Estimates never change
Show Answer
Correct Answer: A. A change in estimate is generally recognised prospectively unless the applicable standard requires otherwise
Explanation:
New information can change estimates without being an error.
Choose an option to check your answer.
A.
A change in estimate is generally recognised prospectively unless the applicable standard requires otherwise
B.
Estimates never change
C.
It rewrites all past statements automatically
D.
It is always fraud
Show Answer
Correct Answer: A. A change in estimate is generally recognised prospectively unless the applicable standard requires otherwise
Explanation:
New information can change estimates without being an error.
Choose an option to check your answer.
A.
It is always fraud
B.
Estimates never change
C.
It rewrites all past statements automatically
D.
A change in estimate is generally recognised prospectively unless the applicable standard requires otherwise
Show Answer
Correct Answer: D. A change in estimate is generally recognised prospectively unless the applicable standard requires otherwise
Explanation:
New information can change estimates without being an error.
