MCQ Collection
Accounting MCQs
Practice Accounting questions with answers and explanations.
Choose an option to check your answer.
Correct Answer: A. Revenue and expenses are recognised according to the applicable recognition principles, not merely cash timing
Explanation:
Accrual accounting reflects economic events in the periods in which they are earned or incurred under the relevant standards.
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Correct Answer: A. The selected permitted cost formula affects cost of sales and closing inventory when unit costs change
Explanation:
Different cost-flow assumptions allocate available cost between cost of sales and ending inventory.
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Correct Answer: D. An impairment review compares carrying amount with the relevant recoverable measure
Explanation:
Impairment prevents assets from remaining recorded above amounts expected to be recovered under the applicable rules.
Choose an option to check your answer.
Correct Answer: B. Revenue and expenses are recognised according to the applicable recognition principles, not merely cash timing
Explanation:
Accrual accounting reflects economic events in the periods in which they are earned or incurred under the relevant standards.
Choose an option to check your answer.
Correct Answer: C. The selected permitted cost formula affects cost of sales and closing inventory when unit costs change
Explanation:
Different cost-flow assumptions allocate available cost between cost of sales and ending inventory.
Choose an option to check your answer.
Correct Answer: B. An impairment review compares carrying amount with the relevant recoverable measure
Explanation:
Impairment prevents assets from remaining recorded above amounts expected to be recovered under the applicable rules.
Choose an option to check your answer.
Correct Answer: B. Revenue and expenses are recognised according to the applicable recognition principles, not merely cash timing
Explanation:
Accrual accounting reflects economic events in the periods in which they are earned or incurred under the relevant standards.
Choose an option to check your answer.
Correct Answer: C. The selected permitted cost formula affects cost of sales and closing inventory when unit costs change
Explanation:
Different cost-flow assumptions allocate available cost between cost of sales and ending inventory.
Choose an option to check your answer.
Correct Answer: B. An impairment review compares carrying amount with the relevant recoverable measure
Explanation:
Impairment prevents assets from remaining recorded above amounts expected to be recovered under the applicable rules.
Choose an option to check your answer.
Correct Answer: A. Revenue and expenses are recognised according to the applicable recognition principles, not merely cash timing
Explanation:
Accrual accounting reflects economic events in the periods in which they are earned or incurred under the relevant standards.
Choose an option to check your answer.
Correct Answer: A. The selected permitted cost formula affects cost of sales and closing inventory when unit costs change
Explanation:
Different cost-flow assumptions allocate available cost between cost of sales and ending inventory.
Choose an option to check your answer.
Correct Answer: D. An impairment review compares carrying amount with the relevant recoverable measure
Explanation:
Impairment prevents assets from remaining recorded above amounts expected to be recovered under the applicable rules.
