ACCA Mock Test 3 - Online MCQ Exam

The “feminization of poverty ” refers to________________?

1 Mark(s)

Your Answer:

the fact that most men are rich the fact that most men are rich
an equal number of men and women being poor now
the fact that female-headed households are usually poor
the fact that women are more blessed than men in spite of poverty

If banks and the private sector decide to hold less cash the money multiplier will be ?

1 Mark(s)

Your Answer:

Unchanged Unchanged
Larger Larger
Smaller Smaller
Unstable Unstable

The main function of organized labor is to_______________?

1 Mark(s)

Your Answer:

manage large corporations manage large corporations
strike strike
bargain collectively bargain collectively
regulate safety regulate safety

In the ‘specification analysis’, the assumptions related to residuals states must be __________?

1 Mark(s)

Your Answer:

worst worst
independent independent
dependent dependent
good good

Depreciation appearing in the Trial Balance should be?

1 Mark(s)

Your Answer:

Debited to P&L A/c Debited to P&L A/c
Shown as liability in Balance Sheet Shown as liability in Balance Sheet
Reduced from related asset in Balance Sheet
Both A. and C. above Both A. and C. above

If the relative price (MRT) of S were to increase, then the price line would ?

1 Mark(s)

Your Answer:

shift out in a parallel fashion shift out in a parallel fashion
shift in a parallel fashion shift in a parallel fashion
Become steeper Become steeper
Become flatter Become flatter

If fixed overhead allocated for actual output units is $25000 and the production volume variance is $9000, then budgeted fixed overhead will be _____________?

1 Mark(s)

Your Answer:

$34,000 $34,000
$24,000 $24,000
$16,000 $16,000
$18,000 $18,000

Deforestation ?

1 Mark(s)

Your Answer:

I and II only I and II only
III and IV only III and IV only
I, II and III only I, II and III only
I, II , III and IV only I, II , III and IV only

Sala-i-Martin interpolates income distribution by ?

1 Mark(s)

Your Answer:

quientiles quientiles
percentiles percentiles
simulation simulation
relative ratio measures relative ratio measures

If book value is greater than market value comparison with investors for future stock are considered as_______________?

1 Mark(s)

Your Answer:

Pessimistic Pessimistic
Optimistic Optimistic
Experienced Experienced
Inexperienced Inexperienced

An actual rate paid to labor is greater than the budgeted rate, it means that the ____________?

1 Mark(s)

Your Answer:

cost is unfavorable cost is unfavorable
variance is unfavorable variance is unfavorable
variance is favorable variance is favorable
cost is favorable cost is favorable

Discount received is a/an:

1 Mark(s)

Your Answer:

Asset Asset
Expense Expense
Liability Liability
Revenue Revenue

When the lk of Uganda lost their traditional hunting grounds they ?

1 Mark(s)

Your Answer:

rapidly became shepherds rapidly became shepherds
their formerly outgoing personalities changed
became savage warriors became savage warriors
became outgoing accomplished entrepreneurs

The social sciences were initially concerned with the consequences of_______________?

1 Mark(s)

Your Answer:

the American Revolution the American Revolution
the French Revolution the French Revolution
the Russian Revolution the Russian Revolution
the Industrial Revolution the Industrial Revolution

Assuming there is no government or foreign sector, if the multiplier is 2.5 the MPC is ?

1 Mark(s)

Your Answer:

4 4
25 25
6 6
2.5 2.5

A case when internal economies of scale bring about a continuously falling average cost curve that makes having more than one firm in an industry inefficient is illustrative of ?

1 Mark(s)

Your Answer:

a natural monopoly a natural monopoly
an LDC’s limit of one firm to an industry
an individual firm facing a horizontal (perfectly elastic) demand curve in LDCs
The existence of oligopoly The existence of oligopoly

Tax deducted at source A/c appears in___________?

1 Mark(s)

Your Answer:

Assets side Assets side
Liability side Liability side
Profit & Loss A/c Profit & Loss A/c
Debited to Capital A/c Debited to Capital A/c

The costs which are considered as expenses in the accounting period are also known as ____________?

1 Mark(s)

Your Answer:

inventory costs inventory costs
period costs period costs
timed costs timed costs
labor overheads labor overheads

If imports licenses are auctioned off to domestic importers in competitive market their scarcity value (revenue effect) accrues to ?

1 Mark(s)

Your Answer:

foreign corporations foreign corporations
foreign workers foreign workers
domestic corporations domestic corporations
The domestic government The domestic government

Which of the following help explain why firms pay bonuses to workers during particularly profitable years to prevent workers from becoming disgruntled ?

1 Mark(s)

Your Answer:

people are rational maximizers people are rational maximizers
People are reluctant to change their minds
People are inconsistent over time People are inconsistent over time
People care about fairness People care about fairness

Other factors held constant, greater project liquidity is because of___________?

1 Mark(s)

Your Answer:

Less project returns Less project returns
Greater project return Greater project return
Shorter payback period Shorter payback period
Greater payback period Greater payback period

Postdated checks are considered as__________?

1 Mark(s)

Your Answer:

Cash Cash
Bank balance Bank balance
Accounts receivable Accounts receivable
Cash reserve Cash reserve

The rate of return, which is made up of risk free and business risk element is known as _____________?

1 Mark(s)

Your Answer:

nominal rate of return nominal rate of return
accrual accounting rate of return accrual accounting rate of return
real rate of return real rate of return
required rate of return required rate of return

Anything that can be offered to a market for attention acquisition, use, or consumption that might satisfy a want or need is called a(n) ?

1 Mark(s)

Your Answer:

idea idea
demand demand
product product
service service

Money that a government has required has required to be accepted in settlement of debts is ?

1 Mark(s)

Your Answer:

barter money barter money
currency value currency value
legal tender legal tender
commodity money commodity money

All partners have limited liability in_________________?

1 Mark(s)

Your Answer:

Unlimited liability partnership Unlimited liability partnership
Limited liability partnership Limited liability partnership
Controlled partnership Controlled partnership
Uncontrolled partnership Uncontrolled partnership

If the sales quantity is 7000 units and the breakeven quantity is 1500 units, then the margin of safety would be __________?

1 Mark(s)

Your Answer:

4500 units 4500 units
5500 units 5500 units
8500 units 8500 units
9500 units 9500 units

Which of the following is true? Retained Earnings are costlier than External Equity, Retained Earnings are cheaper than External Equity, Equity Retained earnings are cost-free, External Equity is cheaper than Internal Equity

1 Mark(s)

Your Answer:

Retained Earnings are costlier than External Equity
Retained Earnings are cheaper than External Equity
Equity Retained earnings are cost-free Equity Retained earnings are cost-free
None of these None of these

Entrepreneurship is the ?

1 Mark(s)

Your Answer:

technique to manage raw materials efficiently
residual of a production function residual of a production function
resource coordinating other productive resources
blueprint on how to manage the labor force

According to William Baumol under oligopolistic competition among large, high tech business firms. innovation has ?

1 Mark(s)

Your Answer:

created stationary economies of scale created stationary economies of scale
maintained the relationship between firms and their clients
replaced price as the important replaced price as the important
limited the expansion of firms limited the expansion of firms

Forecast by analysts, retention growth model and historical growth rates are methods used for an______________?

1 Mark(s)

Your Answer:

Estimate future growth Estimate future growth
Estimate option future value Estimate option future value
Estimate option present value Estimate option present value
Estimate growth ratio Estimate growth ratio

Both fiscal and monetary policies focus on____________________?

1 Mark(s)

Your Answer:

the supply side of the market the supply side of the market
the demand side of the market the demand side of the market
both sides of the market both sides of the market
the global market the global market

The prospectus which describe the new securities are distributed before their registration is classified as ____________?

1 Mark(s)

Your Answer:

red herring prospectus red herring prospectus
white herring prospectus white herring prospectus
preemptive prospectus preemptive prospectus
securitized prospectus securitized prospectus

The highest grade of coal whose surface is shining and has the highest calorific value is ?

1 Mark(s)

Your Answer:

Lignite Lignite
Peat Peat
Bituminous Bituminous
Anthracite Anthracite

If there is cyclical unemployment in the economy the government might ?

1 Mark(s)

Your Answer:

Increase interest rates Increase interest rates
Encourage savings Encourage savings
Cut taxes Cut taxes
Reduce government spending Reduce government spending

Merit goods are ?

1 Mark(s)

Your Answer:

Not provided in the free market economy Not provided in the free market economy
Under provided in the free market economy
Over provided in the free market economy
Provided free Provided free

In cartels ?

1 Mark(s)

Your Answer:

Each individual firm profit maximizes Each individual firm profit maximizes
There may be an incentive to cheat There may be an incentive to cheat
The industry as a whole is loss making The industry as a whole is loss making
There is no need to police agreements There is no need to police agreements

What is the normal balance of a Revenue account in financial accounting?

1 Mark(s)

Your Answer:

Debit Debit
Credit Credit
Both Debit and Credit Both Debit and Credit
None of these None of these

The most common form of religious behavior is__________________?

1 Mark(s)

Your Answer:

tithing tithing
mana mana
prayer prayer
taboo taboo

Modern system of book keeping is called______________?

1 Mark(s)

Your Answer:

Double entry system Double entry system
American system American system
Single entry system Single entry system
Italic system Italic system

Capitalisms roots can be found in_________________?

1 Mark(s)

Your Answer:

feudal agriculture feudal agriculture
Christianity Christianity
machine-based production machine-based production
dialectic materialism dialectic materialism

Critics maintain that the following issues are present in higher education______________?

1 Mark(s)

Your Answer:

high tuitions high tuitions
a lowering of standards a lowering of standards
muzzling of academic freedom muzzling of academic freedom
all of the above all of the above

Experiments_______________?

1 Mark(s)

Your Answer:

are conducted in both field and laboratory setting
involve the risk that people may modify their behavior
must involve control groups of some kind
all of the above all of the above

The reduction or covering of foreign exchange risk is called ?

1 Mark(s)

Your Answer:

hedging hedging
speculation speculation
intervention intervention
arbitrage arbitrage

Which exchange rate mechanism calls for frequent redefining of the par value by small amounts to remove a payments disequilibrium ?

1 Mark(s)

Your Answer:

dual exchange rate dual exchange rate
adjustable pegged exchange rates adjustable pegged exchange rates
managed floating exchange rates managed floating exchange rates
crawling pegged exchange rates crawling pegged exchange rates

The maturity of debt instruments which faces more price fluctuations is ____________?

1 Mark(s)

Your Answer:

primary maturity primary maturity
capital maturity capital maturity
short term maturity short term maturity
long term maturity long term maturity

Expansionary monetary policy ?

1 Mark(s)

Your Answer:

tends to lead to an appreciation of a nation’s currency
tends to lead to a depreciation of a nation’s currency
usually has no effect on a currency’s exchange value
tends to lead to a depreciation of the currencies of other nations

Americans are likely to experience culture shock_______________?

1 Mark(s)

Your Answer:

every time a new administration comes into office
when they inadvertently see a pornographic movie
when they come in contact with an unfamiliar culture
when they witness atrocities committed in wars

The real problem in population growth is________________?

1 Mark(s)

Your Answer:

sheer numbers sheer numbers
uneven density of population uneven density of population
population growth presents no problem population growth presents no problem
that most societies have a fertility rate

In value chain analysis, the selling and promotion to prospective customers is classified as ___________?

1 Mark(s)

Your Answer:

researching researching
marketing marketing
acquaintance acquaintance
usefulness usefulness

In economic growth it is important to consider________________?

1 Mark(s)

Your Answer:

the quantity of capital and labor the quantity of capital and labor
the quality of capital and labor the quality of capital and labor
the quality of the labor force the quality of the labor force
all of the above all of the above

The cost of new machine is considered as ______________?

1 Mark(s)

Your Answer:

relevant relevant
bunk bunk
dispose value dispose value
sunk sunk

Politics may be defined as_______________?

1 Mark(s)

Your Answer:

the statuses and roles that enforce the law
the legitimate use of force within a territory
the process by which individuals and groups acquire power
all of the above all of the above

Treasury bonds are exposed to additional risks that are included________?

1 Mark(s)

Your Answer:

Reinvestment risk Reinvestment risk
Interest rate risk Interest rate risk
Investment risk Investment risk
Both A and B Both A and B

Unions achieve a higher wage differential the more _____ and the more ______?

1 Mark(s)

Your Answer:

inelastic the demand for labour, they can restrict the supply of labour
members they have, aggressive they behave
the economy is growing, people prefer leisure
the productivity is growing vacancies exist

To be Productively efficient a firm must produce where ?

1 Mark(s)

Your Answer:

Marginal costs are maximized Marginal costs are maximized
Marginal costs are Minimized Marginal costs are Minimized
Average costs are minimized Average costs are minimized
Average costs are maximized Average costs are maximized

In capital budgeting, positive net present value results in_________________?

1 Mark(s)

Your Answer:

Negative economic value added Negative economic value added
Positive economic value added Positive economic value added
Zero economic value added Zero economic value added
Percent economic value added Percent economic value added

Occupational immobility of labour occurs if ?

1 Mark(s)

Your Answer:

People lack information People lack information
People do not want to work People do not want to work
People do not have the right skills to work
People cannot afford to move location People cannot afford to move location

Systems of beliefs and behavior designed to meet basic human needs are called ?

1 Mark(s)

Your Answer:

the welfare system the welfare system
religions religions
government government
institutions institutions

The double standard in the behavior of people in society is acknowledged by the existence of a(n)?

1 Mark(s)

Your Answer:

overt and covert culture overt and covert culture
moral and immoral culture moral and immoral culture
legal and illegal culture legal and illegal culture
ethical and unethical culture ethical and unethical culture

In independent projects evaluation, results of internal rate of return and net present value lead to_____________?

1 Mark(s)

Your Answer:

Cash flow decision Cash flow decision
Cost decision Cost decision
Same decisions Same decisions
Different decisions Different decisions

Arrangement of Balance Sheet in a logical order is known as __________?

1 Mark(s)

Your Answer:

Dressing Balance Sheet Dressing Balance Sheet
Marshalling Balance Sheet Marshalling Balance Sheet
Formatting Balance Sheet Formatting Balance Sheet
Make up of Balance Sheet Make up of Balance Sheet

The formula to calculate return on investment, according to profitability analysis in DuPont method is ____________?

1 Mark(s)

Your Answer:

return on sales * investment turnover return on sales * investment turnover
return on sales + investment turnover return on sales + investment turnover
return on sales – investment turnover return on sales – investment turnover
investment turnover + residual income investment turnover + residual income

The most logical budget setting method is found in the list below. Which is it ?

1 Mark(s)

Your Answer:

Affordable method Affordable method
Percentage of sales method Percentage of sales method
Competitive parity method Competitive parity method
Objective and task method Objective and task method

For the better part of recorded history knowledge about social relationships was principally based on ?

1 Mark(s)

Your Answer:

scientific investigation scientific investigation
speculation speculation
inspiration inspiration
measurement measurement

The budgeted quantity of output unit is 250 and budgeted overhead fixed cost is $150, then budgeted fixed overhead output unit will be __________?

1 Mark(s)

Your Answer:

$67,500 $67,500
$57,500 $57,500
$47,500 $47,500
$37,500 $37,500

The primary purpose for using an inventory cost flow assumption is to _____?

1 Mark(s)

Your Answer:

Maximize the reported amount of net income.
Parallel the physical flow of units of merchandise.
Offset against revenue an appropriate cost of goods sold.
None of these None of these

During the Great Depression workers in DCs who took inferior jobs as a result of being laid off were known as ?

1 Mark(s)

Your Answer:

disguised unemployed disguised unemployed
cyclical unemployed cyclical unemployed
seasonally unemployed seasonally unemployed
voluntarily unemployed voluntarily unemployed

Participant observation_________________?

1 Mark(s)

Your Answer:

is exclusively used by anthropologists is exclusively used by anthropologists
requires the researcher to disguise his or her identity
involves experimental controls involves experimental controls
may compromise the objectivity of the researcher

Many U.S firms have sought relief from foreign competition by demanding protectionism policies by the U.S government. A better way for companies to compete is to expand into foreign markets and ?

1 Mark(s)

Your Answer:

lower prices lower prices
increase promotion both at home and abroad
continuously improve their products at home
join into cartels at home join into cartels at home

The situation in the Middle East is an example of________________?

1 Mark(s)

Your Answer:

competition competition
cooperation cooperation
conflict conflict
all of the above all of the above

The limit on the consumption bundles that a consumer can afford is known as ?

1 Mark(s)

Your Answer:

an indifference curve an indifference curve
the budget constraint the budget constraint
the marginal rate of substitution the marginal rate of substitution
the consumption limits the consumption limits

A(n) ________ is a name term sign symbol or design, or a combination of these that identifies that maker or seller of a product or service ?

1 Mark(s)

Your Answer:

Product feature Product feature
sponsorship sponsorship
brand brand
logo logo

What was the third sheep producing country ?

1 Mark(s)

Your Answer:

England England
Australia Australia
China China
India India

Evaluating Your Answers

ACCA Mock Test 3 : Question 1 of 74