All Courses
Get the App Signup / Login
Sign in Open App
B Com Exam  >  B Com Tests  >  Financial Analysis and Reporting  >  Test: Analysis of Operating Decisions - B Com MCQ

Test: Analysis of Operating Decisions - B Com MCQ


Test Description

10 Questions MCQ Test Financial Analysis and Reporting - Test: Analysis of Operating Decisions

Test: Analysis of Operating Decisions for B Com 2024 is part of Financial Analysis and Reporting preparation. The Test: Analysis of Operating Decisions questions and answers have been prepared according to the B Com exam syllabus.The Test: Analysis of Operating Decisions MCQs are made for B Com 2024 Exam. Find important definitions, questions, notes, meanings, examples, exercises, MCQs and online tests for Test: Analysis of Operating Decisions below.
Solutions of Test: Analysis of Operating Decisions questions in English are available as part of our Financial Analysis and Reporting for B Com & Test: Analysis of Operating Decisions solutions in Hindi for Financial Analysis and Reporting course. Download more important topics, notes, lectures and mock test series for B Com Exam by signing up for free. Attempt Test: Analysis of Operating Decisions | 10 questions in 10 minutes | Mock test for B Com preparation | Free important questions MCQ to study Financial Analysis and Reporting for B Com Exam | Download free PDF with solutions
Test: Analysis of Operating Decisions - Question 1
Save

Which approach to income measurement emphasizes the reporting of transactions and matches revenues and costs for deriving accounting income?

Detailed Solution for Test: Analysis of Operating Decisions - Question 1
The transaction approach to income measurement focuses on reporting transactions, matching revenues and costs to derive accounting income. This approach associates effort and accomplishment by recognizing revenues and expenses as they arise from external transactions.
Test: Analysis of Operating Decisions - Question 2
Save

Which income measurement approach considers income to arise from specific activities and events rather than just transactions?

Detailed Solution for Test: Analysis of Operating Decisions - Question 2
The activities approach to income measurement emphasizes income arising from specific events and activities within a firm, expanding on the transaction approach. It focuses on real-world events or activities that contribute to income.
1 Crore+ students have signed up on EduRev. Have you? Download the App
Test: Analysis of Operating Decisions - Question 3
Save

Under the percentage of completion method, revenue recognition occurs based on:

Detailed Solution for Test: Analysis of Operating Decisions - Question 3
The percentage of completion method recognizes revenue based on the cost incurred to estimated total cost. This method is commonly used for long-term projects and estimates the percentage of the project completed, allowing for revenue recognition as progress is made.
Test: Analysis of Operating Decisions - Question 4
Save
Which approach to income measurement recognizes revenue only when all costs incurred for a project have been recouped?
Detailed Solution for Test: Analysis of Operating Decisions - Question 4
The cost recoverability method recognizes revenue only when all costs incurred for a project have been recouped. This conservative approach ensures that no profit is recognized until expenses are fully recovered.
Test: Analysis of Operating Decisions - Question 5
Save
Under the activities approach, income is recognized based on:
Detailed Solution for Test: Analysis of Operating Decisions - Question 5
The activities approach recognizes income based on real-world events and activities, rather than just transactions. It focuses on the description of activities within a firm and their contribution to income.
Test: Analysis of Operating Decisions - Question 6
Save
Which income measurement approach is also known as the capital maintenance approach?
Detailed Solution for Test: Analysis of Operating Decisions - Question 6
The balance sheet approach, also known as the capital maintenance approach, measures income by determining the net increase in assets for a specific accounting period while maintaining the capital intact.
Test: Analysis of Operating Decisions - Question 7
Save
The primary advantage of the transaction approach to income measurement is:
Detailed Solution for Test: Analysis of Operating Decisions - Question 7
The primary advantage of the transaction approach is the efficient recording and analysis of external transactions. It provides a basis for efficient managerial work by focusing on revenues and costs related to external transactions.
Test: Analysis of Operating Decisions - Question 8
Save
Deferred charges are expenditures that are carried on the balance sheet as an asset until:
Detailed Solution for Test: Analysis of Operating Decisions - Question 8
Deferred charges are carried on the balance sheet as an asset until the underlying asset is fully consumed. Once consumed, they are reclassified as expenses in the current period.
Test: Analysis of Operating Decisions - Question 9
Save
Non-recurring items on the income statement are:
Detailed Solution for Test: Analysis of Operating Decisions - Question 9
Non-recurring items on the income statement are not expected to occur regularly and are ignored for analyzing sustainable profitability. They are often excluded by analysts seeking to understand the true ongoing performance of a company.
Test: Analysis of Operating Decisions - Question 10
Save
Which method of revenue recognition is commonly used for real estate transactions when cash collection is uncertain?
Detailed Solution for Test: Analysis of Operating Decisions - Question 10
The installment approach to revenue recognition is commonly used for real estate transactions when cash collection is uncertain. Revenue and gross profit are recognized proportionally to the cash received.
2 videos|51 docs|19 tests
Join Course
Information about Test: Analysis of Operating Decisions Page
In this test you can find the Exam questions for Test: Analysis of Operating Decisions solved & explained in the simplest way possible. Besides giving Questions and answers for Test: Analysis of Operating Decisions, EduRev gives you an ample number of Online tests for practice
Download as PDF

Important Questions for Analysis of Operating Decisions

Find all the important questions for Analysis of Operating Decisions at EduRev.Get fully prepared for Analysis of Operating Decisions with EduRev's comprehensive question bank and test resources. Our platform offers a diverse range of question papers covering various topics within the Analysis of Operating Decisions syllabus. Whether you need to review specific subjects or assess your overall readiness, EduRev has you covered. The questions are designed to challenge you and help you gain confidence in tackling the actual exam. Maximize your chances of success by utilizing EduRev's extensive collection of Analysis of Operating Decisions resources.

Analysis of Operating Decisions MCQs with Answers

Prepare for the Analysis of Operating Decisions within the B Com exam with comprehensive MCQs and answers at EduRev. Our platform offers a wide range of practice papers, question papers, and mock tests to familiarize you with the exam pattern and syllabus. Access the best books, study materials, and notes curated by toppers to enhance your preparation. Stay updated with the exam date and receive expert preparation tips and paper analysis. Visit EduRev's official website today and access a wealth of videos and coaching resources to excel in your exam.

Online Tests for Analysis of Operating Decisions Financial Analysis and Reporting

Practice with a wide array of question papers that follow the exam pattern and syllabus. Our platform offers a user-friendly interface, allowing you to track your progress and identify areas for improvement. Access detailed solutions and explanations for each test to enhance your understanding of concepts. With EduRev's Online Tests, you can build confidence, boost your performance, and ace Analysis of Operating Decisions with ease. Join thousands of successful students who have benefited from our trusted online resources.
© EduRev
Education Revolution
Signup to see your scores go up within 7 days!
Access 1000+ FREE Docs, Videos and Tests
Takes less than 10 seconds to signup