MCQ Collection
AJKPSC Accounts Audit Finance MCQs
Practice AJKPSC Accounts Audit Finance questions with answers and explanations.
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Correct Answer: C. the assertion that items are recorded at appropriate amounts
Explanation:
valuation assertion refers to the assertion that items are recorded at appropriate amounts
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Correct Answer: A. contra entry
Explanation:
contra entry is the term that matches the description: an entry affecting both cash and bank columns in a cash book
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Correct Answer: B. examining records, documents or tangible assets
Explanation:
inspection refers to examining records, documents or tangible assets
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Correct Answer: C. a solid-state storage device
Explanation:
SSD refers to a solid-state storage device
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Correct Answer: B. observation
Explanation:
observation is the term that matches the description: watching a process or procedure being performed
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Correct Answer: C. a procedure evaluating whether a control operated effectively
Explanation:
test of controls refers to a procedure evaluating whether a control operated effectively
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Correct Answer: D. net profit
Explanation:
net profit is the term that matches the description: profit remaining after all relevant expenses
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Correct Answer: B. spending that creates or improves a long-term asset
Explanation:
capital expenditure refers to spending that creates or improves a long-term asset
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Correct Answer: D. going concern
Explanation:
going concern is the term that matches the description: the assumption that an entity will continue operating for the foreseeable future
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Correct Answer: C. professional scepticism
Explanation:
professional scepticism is the term that matches the description: a questioning mind and critical assessment of evidence
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Correct Answer: B. an amount owed to the entity
Explanation:
receivable refers to an amount owed to the entity
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Correct Answer: D. adverse opinion
Explanation:
adverse opinion is the term that matches the description: an opinion that statements are materially and pervasively misstated