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*Section 1: Basic Accounting Concepts – 15 Qs*
1. *GAAP stands for:*
A. Generally Accepted Audit Principles
B. Generally Accepted Accounting Principles
C. General Accounting Application Process
D. Government Accounting Auditing Procedures
*Answer:
2. *The accounting equation is:*
A. Assets = Liabilities + Equity
B. Assets = Liabilities – Equity
C. Assets + Liabilities = Equity
D. Assets + Equity = Liabilities
*Answer:
3. *Revenue is recognized when:*
A. Cash is received
B. Performance obligation is satisfied per ASC 606
C. Invoice is sent
D. Contract is signed
*Answer
4. *Accrual basis records expenses when:*
A. Paid
B. Incurred, regardless of payment
C. Budgeted
D. Approved
*Answer:
5. *Which is a contra-asset account?*
A. Accounts Payable
B. Accumulated Depreciation
C. Sales Revenue
D. Prepaid Rent
*Answer:
6. *Depreciation is an example of:*
A. Matching principle
B. Revenue recognition
C. Conservatism
D. Full disclosure
*Answer:
7. *Current assets do NOT include:*
A. Inventory
B. Accounts Receivable
C. Land
D. Prepaid Insurance
*Answer:
8. *Debit to expense means:*
A. Expense increases
B. Expense decreases
C. Asset increases
D. Liability increases
*Answer:
9. *Trial balance purpose:*
A. Calculate net income
B. Prove debits = credits
C. Prepare tax return
D. Close books
*Answer:
10. *Adjusting entry for accrued salaries:*
A. Dr Cash, Cr Salaries Expense
B. Dr Salaries Expense, Cr Salaries Payable
C. Dr Salaries Payable, Cr Cash
D. Dr Retained Earnings, Cr Salaries Expense
*Answer
11. *FIFO vs LIFO in rising prices: FIFO gives:*
A. Lower net income, lower inventory
B. Higher net income, higher inventory
C. Lower net income, higher inventory
D. Same result
*Answer
12. *Book value of asset =*
A. Cost – Accumulated Depreciation
B. Market value
C. Replacement cost
D. Salvage value
*Answer
13. *Unearned revenue is:*
A. Asset
B. Liability
C. Revenue
D. Equity
*Answer:
14. *Which statement shows financial position at a point in time?*
A. Income Statement
B. Balance Sheet
C. Cash Flow Statement
D. Statement of Retained Earnings
*Answer:
15. *Double-entry accounting means:*
A. Two sets of books
B. Every transaction affects at least 2 accounts
C. Record twice for accuracy
D. Debit twice, credit once
*Answer:
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*Section 2: Basic Economics – 10 Qs*
16. *Opportunity cost is:*
A. Historical cost
B. Value of next best alternative forgone
C. Sunk cost
D. Fixed cost
*Answer:
17. *Law of demand: Price ↑, Quantity demanded:*
A. Increases
B. Decreases
C. Stays same
D. Zero
*Answer:
18. *Price elasticity >1 means demand is:*
A. Inelastic
B. Elastic
C. Unit elastic
D. Perfectly inelastic
*Answer
19. *GDP measures:*
A. Total income of citizens
B. Total market value of goods/services produced in country
C. Government spending
D. Net exports
*Answer:
20. *In recession, Fed typically:*
A. Raises interest rates
B. Lowers interest rates
C. Increases taxes
D. Reduces money supply
*Answer:
21. *Monopoly has:*
A. Many sellers
B. One seller, high barriers to entry
C. Price takers
D. Homogeneous products
*Answer:
22. *CPI measures:*
A. Producer prices
B. Consumer price inflation
C. GDP growth
D. Unemployment
*Answer:
23. *Fiscal policy is controlled by:*
A. Federal Reserve
B. Government – taxing/spending
C. Banks
D. WTO
*Answer:
24. *Comparative advantage means:*
A. Produce all goods cheaper
B. Produce at lower opportunity cost
C. Absolute advantage
D. No trade
*Answer:
25. *Supply curve shifts right due to:*
A. Cost increase
B. Technology improvement
C. Tax increase
D. Fewer suppliers
*Answer:
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*Section 3: Basic Cost Accounting – 15 Qs*
26. *Prime cost =*
A. DM + DL + FOH
B. DM + DL
C. DL + FOH
D. Total manufacturing cost
*Answer:
27. *Conversion cost =*
A. DM + DL
B. DL + FOH
C. DM + FOH
D. Prime + FOH
*Answer:
28. *Fixed cost per unit:*
A. Constant
B. Decreases as volume increases
C. Increases as volume increases
D. Zero
*Answer:
29. *Variable cost total:*
A. Constant
B. Changes with volume
C. Zero at zero production
D. Both B & C
*Answer:
30. *Direct cost example:*
A. Factory rent
B. Wood for table
C. Supervisor salary
D. Depreciation
*Answer:
31. *Indirect cost is:*
A. Traceable to product
B. Not traceable, allocated
C. Prime cost
D. DM
*Answer:
32. *Job costing used for:*
A. Oil refining
B. Custom homes
C. Soft drinks
D. Chemicals
*Answer:
33. *Process costing used for:*
A. Shipbuilding
B. Cement
C. Consulting
D. Advertising
*Answer:
34. *Contribution margin =*
A. Sales – Fixed costs
B. Sales – Variable costs
C. Sales – COGS
D. Net income
*Answer:
35. *Break-even point units =*
A. Fixed costs / CM per unit
B. Fixed costs / Sales
C. Sales / CM ratio
D. VC / CM
*Answer:
36. *Margin of safety =*
A. Actual sales – Break-even sales
B. Break-even – Actual
C. Fixed costs / CM
D. Net income
*Answer:
37. *Overhead allocation base should be:*
A. Random
B. Cost driver causing OH
C. Always DL hours
D. Sales
*Answer:
38. *Normal costing uses:*
A. Actual DM, Actual DL, Actual OH
B. Actual DM, Actual DL, Applied OH
C. Standard all
D. Estimated all
*Answer:
39. *Sunk cost is:*
A. Relevant for decision
B. Past cost, irrelevant
C. Future cost
D. Opportunity cost
*Answer:
40. *Differential cost is:*
A. Sunk cost
B. Difference between alternatives
C. Fixed cost
D. Historical cost
*Answer:
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*Section 4: Basic Business Acumen & Corporate Governance – 10 Qs*
41. *Board of Directors primary duty:*
A. Day-to-day operations
B. Oversight, strategy, risk, protect shareholders
C. Prepare financials
D. Sales
*Answer:
42. *Audit Committee must have:*
A. CEO as member
B. All independent directors, 1 financial expert
C. CFO chair
D. Internal auditors
*Answer:
43. *Sarbanes-Oxley 404 requires:*
A. Tax audit
B. Management assessment + auditor attestation of ICFR
C. Cost audit
D. Inventory audit
*Answer:
44. *Agency problem exists between:*
A. Customers & suppliers
B. Managers & shareholders
C. Employees & vendors
D. Auditors & mgmt
*Answer:
45. *Whistleblower program is part of:*
A. Control Environment
B. Risk Assessment
C. Monitoring
D. Information
*Answer:
46. *Fiduciary duty means:*
A. Act in own interest
B. Act in best interest of others
C. Maximize short-term profit
D. Avoid all risk
*Answer:
47. *Stakeholders include:*
A. Shareholders only
B. Shareholders, employees, customers, suppliers, community
C. Board only
D. Government only
*Answer:
48. *Code of Ethics addresses:*
A. Tax rates
B. Conflicts of interest, integrity, confidentiality
C. Product pricing
D. Dividends
*Answer:
49. *Enterprise Risk Management per COSO includes:*
A. Financial reporting only
B. Strategy, operations, reporting, compliance risks
C. IT risks only
D. Audit risks
*Answer:
50. *Tone at the top refers to:*
A. CEO salary
B. Ethical culture set by board & senior mgmt
C. Office design
D. Stock price
*Answer:
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*Section 5: Basic Finance Terms – 10 Qs*
51. *NPV > 0 means:*
A. Reject project
B. Accept – adds value
C. IRR < WACC
D. Payback not met
*Answer:
52. *WACC is:*
A. Cost of debt only
B. Weighted average cost of debt & equity
C. Return on assets
D. Dividend rate
*Answer:
53. *Current Ratio =*
A. Current Assets / Current Liabilities
B. Quick Assets / Current Liabilities
C. Total Debt / Equity
D. NI / Sales
*Answer:
54. *ROE =*
A. Net Income / Sales
B. Net Income / Total Assets
C. Net Income / Equity
D. EBIT / Assets
*Answer:
55. *Time value of money: $1 today > $1 future due to:*
A. Inflation + opportunity to earn
B. Tax
C. Accounting rules
D. Depreciation
*Answer:
56. *Bond price ↑ when interest rates:*
A. Increase
B. Decrease
C. Stay same
D. No relation
*Answer:
57. *Diversification reduces:*
A. Systematic risk
B. Unsystematic risk
C. Market risk
D. Interest rate risk
*Answer:
58. *Operating leverage high means:*
A. High variable costs
B. High fixed costs, EBIT sensitive to sales
C. Low risk
D. Low break-even
*Answer:
59. *Dividend payout ratio =*
A. Dividends / Net Income
B. Net Income / Dividends
C. Dividends / Sales
D. Retained Earnings / NI
*Answe
60. *Treasury stock is:*
A. Stock owned by government
B. Company’s own stock repurchased
C. Preferred stock
D. Foreign stock
*Answer:
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*Section 6: AIS & Business Cycles Documents – 15 Qs*
61. *AIS stands for:*
A. Accounting Internal System
B. Accounting Information System
C. Audit Information Standard
D. Asset Inventory System
*Answer:
62. *Revenue cycle starts with:*
A. Cash receipt
B. Customer order
C. Invoice
D. Shipment
*Answer:
63. *Key document in revenue cycle:*
A. Purchase order
B. Sales order
C. Receiving report
D. Time card
*Answer:
64. *Bill of lading is prepared by:*
A. Customer
B. Carrier – proof of shipment
C. Sales dept
D. Accounting
*Answer:
65. *Remittance advice accompanies:*
A. Sales order
B. Customer payment
C. Purchase requisition
D. Invoice
*Answer:
66. *Purchase cycle starts with:*
A. Invoice from vendor
B. Purchase requisition
C. Payment
D. Receiving report
*Answer:
67. *PO stands for:*
A. Payment Order
B. Purchase Order
C. Production Order
D. Payroll Order
*Answer:
68. *Three-way match in purchase cycle:*
A. PO, Invoice, Check
B. PO, Receiving Report, Vendor Invoice
C. Requisition, PO, Invoice
D. Quote, PO, Payment
*Answer:
69. *Receiving report is prepared by:*
A. Purchasing dept
B. Receiving dept upon goods receipt
C. Vendor
D. Accounting
*Answer:
70. *Payroll cycle key document:*
A. Sales invoice
B. Time card/Time sheet
C. Purchase order
D. Packing slip
*Answer:
71. *W-4 form used for:*
A. Employee tax withholding info
B. Employer tax payment
C. Vendor payment
D. Customer credit
*Answer:
72. *Control in revenue cycle:*
A. No credit checks
B. Segregation: Order entry, credit, shipping, billing, cash
C. Same person ships & bills
D. No invoices
*Answer:
73. *Purchase cycle fraud red flag:*
A. Three-way match done
B. Vendor address = employee address
C. Approved PO
D. Receiving report signed
*Answer:
74. *Payroll fraud type:*
A. Kiting
B. Ghost employee
C. Lapping
D. Channel stuffing
*Answer:
75. *AIS output includes:*
A. Financial statements, management reports
B. Source documents only
C. Journal entries only
D. Bank statements
*Answer
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*Section 7: Org Structure & Technology/Data Analytics – 25 Qs*
76. *Functional org structure groups by:*
A. Products
B. Function: Marketing, Finance, Production
C. Geography
D. Customers
*Answer:
77. *Matrix structure has:*
A. Single boss
B. Dual reporting – function & project
C. No hierarchy
D. Outsourced
*Answer:
78. *Span of control means:*
A. Number of levels
B. Number of subordinates per manager
C. Company size
D. Budget size
*Answer:
79. *Centralized decision making:*
A. Fast, local response
B. Decisions at top, consistent
C. Low control
D. Empowerment
*Answer
80. *ERP system benefit:*
A. Data silos
B. Integrated database, real-time info
C. Manual entry
D. Multiple systems
*Answer:
81. *Database vs Spreadsheet: Database better for:*
A. Small ad-hoc analysis
B. Large volume, multi-user, data integrity
C. Charts
D. One-time calc
*Answer:
82. *Data warehouse is:*
A. Transaction processing
B. Central repository for analytics & reporting
C. Backup system
D. Email server
*Answer:
83. *Big Data 3 V’s:*
A. Value, Verify, Validate
B. Volume, Velocity, Variety
C. Visual, Verbal, Vital
D. Vendor, Version, View
*Answer:
84. *Descriptive analytics answers:*
A. What will happen?
B. What happened?
C. Why did it happen?
D. What should we do?
*Answer:
85. *Predictive analytics answers:*
A. What happened?
B. What will happen?
C. What should we do?
D. Why it happened?
*Answer:
86. *Prescriptive analytics answers:*
A. What happened?
B. What should we do?
C. What will happen?
D. Why it happened?
*Answer:
87. *RPA stands for:*
A. Risk Planning Analysis
B. Robotic Process Automation
C. Revenue Per Asset
D. Return on Process
*Answer:
88. *RPA best for:*
A. Judgment tasks
B. Repetitive, rule-based, high-volume tasks
C. Creative work
D. Strategy
*Answer:
89. *Data visualization tool example:*
A. Word
B. Tableau, Power BI
C. Outlook
D. Notepad
*Answer:
90. *Blockchain feature:*
A. Centralized
B. Immutable, distributed ledger
C. Easy to alter
D. Slow
*Answer:
91. *Cybersecurity CIA triad:*
A. Control, Insight, Audit
B. Confidentiality, Integrity, Availability
C. Cost, Income, Assets
D. Check, Inspect, Approve
*Answer:
92. *Phishing is:*
A. Hardware failure
B. Social engineering via fake emails
C. Software bug
D. Network speed issue
*Answer
93. *Cloud computing benefit:*
A. High upfront cost
B. Scalability, pay-as-you-go
C. No internet needed
D. Less secure
*Answer
94. *Data governance includes:*
A. Data quality, security, privacy, ownership
B. Only backups
C. Only reporting
D. Hardware purchase
*Answer:
95. *Structured data example:*
A. Emails
B. Database table with rows/columns
C. Video
D. Social media posts
*Answer:
96. *Unstructured data example:*
A. Excel table
B. PDF contract, images, audio
C. GL account list
D. Inventory master
*Answer:
97. *Dashboard key feature:*
A. 100 pages of data
B. Visual, KPI, real-time, drill-down
C. Text only
D. Annual only
*Answer:
98. *IT General Controls include:*
A. Input validation
B. Access security, change management, backup
C. Sales order entry
D. Payroll calc
*Answer:
99. *Application controls include:*
A. Firewall
B. Input edit checks, batch totals, reasonableness checks
C. Physical security
D. Backup
*Answer
100. *Data mining is used to:*
A. Store data
B. Discover patterns/trends in large datasets
C. Delete data
D. Backup data
*Answer:
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