Third Round | Brain of Accountants 3.0

A cost that changes with the number of units produced, but that can never be zero, is what kind of cost?

• Mixed Cost

• Fixed Cost

• Variable Cost

• Opportunity Cost

How the current ratio is calculated?

• Current Liabilities/ Current Assets

• Equity/ Current Assets

• Current Assets/ Current Liabilities

• Non- current Assets/ Non-current Liabilities

Which of these is a typical dividend yield for any company?

• 0.00000003%

• 3%

• 100%

• 300%

Monthly fixed costs are $20,000 excluding depreciation of $5,000.

Which figure should be shown in the Receipts section of the cash budget?

• $20,000

• $25,000

• $15,000

• none of the above

In May a company buys $100,000 of raw materials and pays for it in the month incurred.

In which month was the payment made?

• April

• May

• June

• Cannot tell from information given

What does the abbreviation GAAP stand for?

• Generally Accepted Accounting Principles

• Generally American Accounting Principles

• Great American Accounting Principles

• Great Accepted Accounting Principles

If an invoice dated September 9 and received on September 12 Shows terms of 2/10, n/30, what is the last day that a discount may be taken?

• September 11

• September 19

• September 22

• October 9

If owners equity is $25,500, and assets are $37,600, liabilities are

• $25,500

• $37,600

• $63,100

• $12,100

The process of transferring information from the journal to the individual general ledger accounts is called

• Journalizing

• Posting

• Transferring

• Carrying forward

What is the Net Profit margin for Paul's Guitar Shop?

• 2.15%

• 46.5%

• 130%

• 13.12%