Administrator, Author at GetMCQs

2167. Auction sites like eBay tend to use _______ pricing.

dynamic

fixed

trigger

utilization

✅ The correct answer is A.
Auction sites like eBay tend to use dynamic pricing. Dynamic pricing is the latest pricing trend that has taken the ecommerce industry by storm.

2168. Retained earnings are ?

an indication of a company’s liquidity

the same as cash in the bank

not important when determining dividends

the cumulative earnings of the company after dividends.

✅ The correct answer is D.
Retained earnings are the cumulative earnings of the company after dividends. Retained earnings are the profits that a company has earned to date, less any dividends or other distributions paid to investors. This amount is adjusted whenever there is an entry to the accounting records that impacts a revenue or expense account.

205. The parties to joint venture are called

Friends

Principal and agent

Partners

Co-ventures

✅ The correct answer is D.
The parties to joint venture are called Co-ventures. With individuals, when two or more persons come together to form a temporary partnership for the purpose of carrying out a particular project, such partnership can also be called a joint venture where the parties are “co-venturers”.

2170. Filing is an important aspect of _________.

record keeping

book keeping

house-keeping

time keeping

✅ The correct answer is C.
Filing is an important aspect of house-keeping. Housekeeping is crucial to safe workplaces.

2171. A technique for estimating regression line, which minimizes sum of vertical deviations squares is classified as

variable technique

least square technique

indexed technique

fixed technique

✅ The correct answer is B.
A technique for estimating regression line, which minimizes sum of vertical deviations squares is classified as least square technique.

2172. Method, which allocates cost of support department for operating departments by recognizing all mutual services provided is classified as

indirect method

direct method

step down method

reciprocal method

✅ The correct answer is D.
Method, which allocates cost of support department for operating departments by recognizing all mutual services provided is classified as reciprocal method. In the reciprocal method, the relationship between the service departments is recognized. This means service department costs are allocated to and from the other service departments.

2174. When a transaction is processed online, how can the merchant verify the customer’s identity?

use secure sockets layers

use secure electronic transactions

use electronic data interchange

use financial electronic data interchange

✅ The correct answer is B.
When a transaction is processed online, use secure electronic transactions the merchant can verify the customer’s identity by using secure electronic transactions.

2176. The law of variable proportions come into being when

There are only two variable factors

There is a fixed factor and a variable factor

All factors are variable

Variable factors yield less

✅ The correct answer is B.
The law of variable proportions come into being when there is a fixed factor and a variable factor. The law of variable proportions states that as the quantity of one factor is increased, keeping the other factors fixed, the marginal product of that factor will eventually decline.

2158. If static budget amount is $6000 and flexible budget amount is $15000, then sales volume variance will be

$9,000

$8,000

$12,000

$21,000

✅ The correct answer is A.
Sales volume variance = Flexible budget amount – Static budget amount
= $15000 – $6000 = $9,000

2160. Which of the following factors influence(s) the capital structure of a business entity?

Bargaining power with the suppliers

Demand for the product of the company

Technology adopted

Adequate of the assets to meet any sudden spurt in demand

✅ The correct answer is C.
Technology adopted factors influence the capital structure of a business entity. The capital structure is how a firm finances its overall operations and growth by using different sources of funds.

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