ACCA Mock Test 7 - Online MCQ Exam

In Regression Analysis, if an observed cost value is 85 and the disturbance error is 25 then predicted cost value will be ___________?

1 Mark(s)

Your Answer:

95 95
50 50
120 120
100 100

Document in a corporation which consists of amount of stock, name and addresses of directors is classified as_____________?

1 Mark(s)

Your Answer:

Liability plan Liability plan
Stock planning Stock planning
Corporation paperwork Corporation paperwork
Charter Charter

How is your purchase in Pakistan of a Rs40,000 BMW automobile that was produced entirely in Germany recorded in the Pakistan’s GDP accounts ?

1 Mark(s)

Your Answer:

Consumption in increase by Rs40,000 and net export decreases by Rs40,000
Net exports increase by Rs40,000 Net exports increase by Rs40,000
There is no impact because this transaction does not involve domestic production
Investment increased by Rs40,000 and net exports increases by Rs40,000

The default risk is measured by large traders, managers and investors with the help of _________?

1 Mark(s)

Your Answer:

sinking analysis sinking analysis
analyzing financial ratios analyzing financial ratios
portfolio scenario value portfolio scenario value
automated machine analysis automated machine analysis

In linear cost function, the fixed cost is considered as _________?

1 Mark(s)

Your Answer:

constant constant
variable variable
exponent exponent
base base

Deviance is defined______________?

1 Mark(s)

Your Answer:

in the same way everywhere in the same way everywhere
in some cultures, as nonexistent in some cultures, as nonexistent
in the context of time and place in the context of time and place
as another world for crime as another world for crime

The fifth step in process costing system is to ___________?

1 Mark(s)

Your Answer:

allocate separable costs allocate separable costs
allocate joint costs allocate joint costs
compute gross margin compute gross margin
assign total cost to completed units assign total cost to completed units

Which of the following is an example of purchasing costs?

1 Mark(s)

Your Answer:

incoming freight incoming freight
storage costs storage costs
insurance insurance
spoilage spoilage

The treasury notes that provide returns tied to inflation rate are classified as

1 Mark(s)

Your Answer:

clean price bonds clean price bonds
discount index bonds discount index bonds
premium index bonds premium index bonds
inflation index bonds inflation index bonds

The most fundamental function of the family is_________________?

1 Mark(s)

Your Answer:

ensuring the reproduction of the species
providing sex education providing sex education
feeding its members feeding its members
keeping members sheltered keeping members sheltered

Which status is in transition and difficult to classify in corporate relationships ?

1 Mark(s)

Your Answer:

Foreman Foreman
Union official Union official
Stock holder Stock holder
CEO CEO

The total fertility rate (TFR) is ?

1 Mark(s)

Your Answer:

The total number of children born in a country in given year a divided by labor force
The number of children born to the average woman during her reproductive years.
The number of births in a country divided by total population in a given year.
The number of woman age 15-45 in a country divided by total population

________ is the common base for preparing a trial balance?

1 Mark(s)

Your Answer:

Ledger accounts Ledger accounts
General Journal General Journal
Specialized journals Specialized journals
Balance sheet Balance sheet

The part of the master budget, which covers the capital expenditures, budgeted statement of cash flows and balance sheets are classified as ___________?

1 Mark(s)

Your Answer:

financial budget financial budget
capital budget capital budget
cash flows budget cash flows budget
balanced budget balanced budget

A technique, which accumulates and tracks the costs of business function in value chain attributed to each market, offering from R&D to final customer support, is called __________?

1 Mark(s)

Your Answer:

product life cycle product life cycle
life cycle budgeting life cycle budgeting
life cycle costing life cycle costing
target costing target costing

An allocation is Pareto-efficient if no reallocation of resources would make some people _______ without making others ________?

1 Mark(s)

Your Answer:

worse off; worse off worse off; worse off
better off; better off better off; better off
better off; worse off better off; worse off
equal, unequal equal, unequal

If the static budget is $208000 and the flexible budget amount is $305000, then the sales budget variance will be ___________?

1 Mark(s)

Your Answer:

$67,000 $67,000
$97,000 $97,000
$57,000 $57,000
$47,000 $47,000

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

The United States government began to function in_______________?

1 Mark(s)

Your Answer:

1763 1763
1776 1776
1781 1781
1788 1788

If the economic order quantity for one year is 15000 packages and demand in units for one year are 1500 units, then number of deliveries in a year will be ____________?

1 Mark(s)

Your Answer:

16 16
12 12
10 10
14 14

Asian tigers or newly industrializing countries (NICs) of East and Southeast Asia include the following except ?

1 Mark(s)

Your Answer:

South Korea South Korea
China China
Taiwan Taiwan
Singapore Singapore

Which of the following is known as the group of assets such as stocks and bonds held by an investor ?

1 Mark(s)

Your Answer:

Stock Bundle Stock Bundle
Portfolio Portfolio
Capital Structure Capital Structure
None of These None of These

Laws that make it illegal for firms to conspire to raise prices or reduce production are known as ?

1 Mark(s)

Your Answer:

antimonopoly laws antimonopoly laws
all of these answers all of these answers
anti-collusion laws anti-collusion laws
pro-competition laws pro-competition laws
antitrust laws antitrust laws

The marginal propensity to withdraw is ?

1 Mark(s)

Your Answer:

1/investment multiplier 1/investment multiplier
1-(1/injections multiplier 1-(1/injections multiplier
MPS + MPT + MPM MPS + MPT + MPM
the proportion of national income that is withdraw from the circular flow of income

If a company uses large quantity of input than the budgeted quantity for output level, then the company is known to be __________?

1 Mark(s)

Your Answer:

variable growth of company variable growth of company
constant growth of company constant growth of company
company is inefficient company is inefficient
company is efficient company is efficient

The rise in value of one currency relative to another is ?

1 Mark(s)

Your Answer:

a weakening of a currency a weakening of a currency
A depreciation of a currency A depreciation of a currency
An appreciation of a currency An appreciation of a currency
a debasement of a currency a debasement of a currency

The price of an option is subtracted form time value of option to calculate __________?

1 Mark(s)

Your Answer:

book value index book value index
market index market index
intrinsic value intrinsic value
extrinsic value extrinsic value

If unexpired insurance appears in the Trial Balance, it should be:

1 Mark(s)

Your Answer:

Credited to the Profit & Loss Account Credited to the Profit & Loss Account
Debited to the Profit & Loss Account Debited to the Profit & Loss Account
Shown on the liabilities side of the Balance Sheet
Shown on the assets side of the Balance Sheet

An indirect setup labor costs, costs of setup and equipment maintenance and costs of indirect material can be categorized as ______________?

1 Mark(s)

Your Answer:

variable batch costs variable batch costs
fixed batch costs fixed batch costs
variable setup costs variable setup costs
fixed setup costs fixed setup costs

According to criminologists_______________?

1 Mark(s)

Your Answer:

the death penalty does act as a deterrent
the death penalty does not act as a deterrent
the death penalty is a sing of an uncivilized society
it is preferable to judge each criminal case individually

If the relevant opportunity cost of capital is $2950 and the relevant carrying cost of inventory is $6700, then the relevant incremental cost will be _____________?

1 Mark(s)

Your Answer:

$9,650 $9,650
$2,350 $2,350
$3,750 $3,750
$2,750 $2,750

Hitler led the German people by emotional speeches He derived his authority from________________?

1 Mark(s)

Your Answer:

God God
the law the law
the Bible the Bible
personal charisma personal charisma

The compensation paid by the borrower of fund to lender, from the borrower point of the cost of borrowing fund is called?

1 Mark(s)

Your Answer:

Interest Rate Interest Rate
Required rate of return Required rate of return
Nominal interest rate Nominal interest rate
All of the above All of the above

Coefficient of beta is used to measure stock volatility_____________?

1 Mark(s)

Your Answer:

Coefficient of market Coefficient of market
Relative to market Relative to market
Ir-relative to market Ir-relative to market
Same with market Same with market

In which of the following cases is the assumption most reasonable ?

1 Mark(s)

Your Answer:

To address the impact to taxes on income distribution an economist assumes that everyone earns the same income.
To address the impact of money growth on inflation, an economist assumes that money is strictly coins.
To model the benefits of trade. an economist assumes that there are two people and two goods
To estimate the speed at which a beach ball falls, a physicist assumes that if falls in a vacuum.

The special provisions that can have adverse or beneficial effects and are reflected in interest rates do not include _____________?

1 Mark(s)

Your Answer:

tax-ability tax-ability
covert ability covert ability
call ability call ability
inflation premium inflation premium

A business asset of Rs. 43142 and owner’s equity Rs.13210. What is the amount of liabilities?

1 Mark(s)

Your Answer:

Rs. 43142 Rs. 43142
Rs. 31102 Rs. 31102
Rs. 57222 Rs. 57222
Rs. 29,932. Rs. 29,932.

In cost accounting, the financial way of charging price for product above the cost, of acquiring or producing the goods is known as ___________?

1 Mark(s)

Your Answer:

sales margin sales margin
cost margin cost margin
Gross margin Gross margin
income margin income margin

Which is the most important characteristic that all assets of a business have?

1 Mark(s)

Your Answer:

Long life of assets Long life of assets
Value of assets Value of assets
Intangible nature of assets Intangible nature of assets
Future economic benefits Future economic benefits

A good example of a public good is ?

1 Mark(s)

Your Answer:

public transport public transport
the national health service the national health service
national defence national defence
rail transport rail transport

Government based on the rule of either the landed gentry the educated and privileged or the hereditary nobility is called_______________?

1 Mark(s)

Your Answer:

aristocracy aristocracy
oligarchy oligarchy
republicanism republicanism
democracy democracy

The goodness of fit is used to measure the wellness of ________?

1 Mark(s)

Your Answer:

actual values actual values
predicted values predicted values
residual values residual values
indexed values indexed values

The form of dumping that represents the greatest potential net welfare loss the for importing national is ?

1 Mark(s)

Your Answer:

predatory dumping predatory dumping
sporadic dumping sporadic dumping
persistent dumping persistent dumping
yearend dumping yearend dumping

Given the foreign currency market for the Swiss franc, the supply of franc slopes upward, because as the dollar price of the franc rises ?

1 Mark(s)

Your Answer:

America’s demand for Swiss merchandise rises
America’s demand for Swiss merchandise falls
Switzerland’s demand for American merchandise rises
Switzerland’s demand for American merchandise falls

If a company has contingent liabilities, they appear in the__________?

1 Mark(s)

Your Answer:

Balance Sheet Balance Sheet
Directors‘ report Directors‘ report
Notes on account to Balance Sheet Notes on account to Balance Sheet
Chairman‘s report Contingent liabilities are disclosed in the notes to Balance Sheet

The translation of organization strategy, and mission into performance measures to provide framework for strategy implementation is termed as __________?

1 Mark(s)

Your Answer:

differentiation scorecard differentiation scorecard
bargaining scorecard bargaining scorecard
leadership scorecard leadership scorecard
balanced scorecard balanced scorecard

If demand is linear (a straight line) then price elasticity of demand is ?

1 Mark(s)

Your Answer:

elastic in the upper portion and inelastic in the lower portion
inelastic in the upper portion and elastic in the lower portion
inelastic throughout inelastic throughout
constant along the demand curve constant along the demand curve

Which is NOT a theoretical perspective on international relations_______________?

1 Mark(s)

Your Answer:

globalism globalism
pluralism pluralism
scientific democracy scientific democracy
neorealism neorealism

In corporate costs, the costs incur for employee recruitment, development and training are classified as _______?

1 Mark(s)

Your Answer:

discretionary costs discretionary costs
human resource management costs human resource management costs
corporate administration costs corporate administration costs
treasury costs treasury costs

The difference between actual quantity use and input quantity for output is multiplied with budgeted price to calculate ___________?

1 Mark(s)

Your Answer:

efficiency deviation efficiency deviation
efficiency variance efficiency variance
budgeted variance budgeted variance
usage variance usage variance

The costs of issuing purchase orders, making of delivery records for tracking payments and costs of inspection of items are classified as _____________?

1 Mark(s)

Your Answer:

stock-out costs stock-out costs
ordering costs ordering costs
carrying costs carrying costs
purchasing costs purchasing costs

The contribution margin per unit is divided by selling price to calculate ____________?

1 Mark(s)

Your Answer:

fixed margin percentage fixed margin percentage
contribution margin percentage contribution margin percentage
variable margin percentage variable margin percentage
breakeven margin percentage breakeven margin percentage

Racism is based on the belief (s) that_________________?

1 Mark(s)

Your Answer:

groups inherit certain traits that are inferior
the dominant majority is the fittest from a Darwinian point of view
minority groups should not have access to wealth and power
all of the above all of the above

The price of underlying asset is added into intrinsic value of option to calculate ___________?

1 Mark(s)

Your Answer:

forward price of option forward price of option
exercise price of option exercise price of option
book value of option book value of option
spot price of option spot price of option

How many procedures have been following for the best competitive bidding?

1 Mark(s)

Your Answer:

4 4
2 2
3 3
None of these None of these

The creation of culture unlike playwriting ?

1 Mark(s)

Your Answer:

is the work of generation? is the work of generation?
is not always a deliberate act is not always a deliberate act
never results in a final authorized script
all of the above all of the above

The type of markets in which derivative securities are traded is classified as ___________?

1 Mark(s)

Your Answer:

derivative security markets derivative security markets
trading markets trading markets
classified markets classified markets
non-trading markets non-trading markets

In the long run in perfect competition ?

1 Mark(s)

Your Answer:

price = average cost = marginal cost price = average cost = marginal cost
price = average cost = total cost price = average cost = total cost
price = marginal cost = total cost price = marginal cost = total cost
Total revenue = Total variable cost Total revenue = Total variable cost

Supply side policies are most appropriate to cure ?

1 Mark(s)

Your Answer:

Involuntary unemployment Involuntary unemployment
Cyclical unemployment Cyclical unemployment
Voluntary unemployment Voluntary unemployment
A fall in aggregate demand A fall in aggregate demand

Social institutions________________?

1 Mark(s)

Your Answer:

are ingrained patterns of behavior representing solutions to universal human needs
are things like banks and schools are things like banks and schools
make up cultural components make up cultural components
all of the above all of the above

The term Fourth World has been coined to describe ?

1 Mark(s)

Your Answer:

the newly industrialized countries like Korea, Taiwan Malaysia
The republics of the former Soviet Union
Countries that still have a communist government like China and Cuba
countries that have fallen far behind the economic advances of the rest of the world

In absorption costing, the managers may increase operating income by producing ____________?

1 Mark(s)

Your Answer:

more sales more sales
more inventory units more inventory units
less inventory units less inventory units
less sales less sales

Cash book with cash and discount column is mostly referred as________?

1 Mark(s)

Your Answer:

Simple cash book Simple cash book
Two column cash book Two column cash book
Three column cash book Three column cash book
Petty cash book Petty cash book

Evaluating Your Answers

ACCA Mock Test 7 : Question 1 of 63