MCQ Collection
AJKPSC Accounts Audit Finance MCQs
Practice AJKPSC Accounts Audit Finance questions with answers and explanations.
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Correct Answer: C. bad debt
Explanation:
bad debt is the term that matches the description: a receivable considered uncollectible
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Correct Answer: D. financial support intended to reduce cost or encourage an activity
Explanation:
subsidy refers to financial support intended to reduce cost or encourage an activity
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Correct Answer: A. contract
Explanation:
“contract” is the antonym of “expand”.
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Correct Answer: B. accommodation
Explanation:
“Accommodation” has double c and double m.
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Correct Answer: C. current ratio
Explanation:
current ratio is the term that matches the description: current assets divided by current liabilities
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Correct Answer: C. payment made before the related benefit is consumed
Explanation:
prepayment refers to payment made before the related benefit is consumed
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Correct Answer: D. appropriation
Explanation:
appropriation is the term that matches the description: legal authority to spend public money for specified purposes
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Correct Answer: C. credit
Explanation:
credit is the term that matches the description: the right side of a ledger account
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Correct Answer: C. a statement of cash inflows and outflows by activity
Explanation:
cash flow statement refers to a statement of cash inflows and outflows by activity
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Correct Answer: A. materiality
Explanation:
materiality is the term that matches the description: the significance of information to users’ decisions
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Correct Answer: B. journal
Explanation:
journal is the term that matches the description: the book of original entry
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Correct Answer: B. gross profit
Explanation:
gross profit is the term that matches the description: sales revenue minus cost of goods sold