BBA: Finance Courses

MBA Cost Accounting Practice Tests

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## Residual Income MCQ Quiz : Accounting MCQs

MCQ 1: An investment is multiplied to required rate of return, to calculate

A) congruent cost of investment
B) transfer cost of investment
C) operating cost of investment
D) imputed cost of investment

MCQ 2: If the required rate of return is 13%, operating income is \$375000 and the total investment is \$2650000, then the residual income would be

A) \$30,500
B) \$20,500
C) \$25,500
D) \$32,500

MCQ 3: The costs that are not incorporated in accounting records, but are recognized in different situations are classified as

A) congruent costs
B) imputed costs
C) operating costs
D) transfer costs

MCQ 4: The rupee amount for required return of investment is subtracted from income to calculate

A) net income
B) after tax income
C) residual income
D) operating income

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