MCQ Collection
BPSC Accounts Audit Finance MCQs
Practice BPSC Accounts Audit Finance questions with answers and explanations.
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Correct Answer: A. a statement of revenue, expenses and profit over a period
Explanation:
income statement refers to a statement of revenue, expenses and profit over a period
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Correct Answer: B. consistency
Explanation:
consistency is the term that matches the description: using accounting policies consistently across periods unless change is justified
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Correct Answer: A. budgeting for long-term assets and development expenditure
Explanation:
capital budget refers to budgeting for long-term assets and development expenditure
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Correct Answer: D. current ratio
Explanation:
current ratio is the term that matches the description: current assets divided by current liabilities
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Correct Answer: B. requiring approval before specified transactions occur
Explanation:
authorisation control refers to requiring approval before specified transactions occur
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Correct Answer: B. audit evidence obtained directly from an independent third party
Explanation:
confirmation refers to audit evidence obtained directly from an independent third party
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Correct Answer: B. confirmation
Explanation:
confirmation is the term that matches the description: audit evidence obtained directly from an independent third party
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Correct Answer: A. liability
Explanation:
liability is the term that matches the description: a present obligation expected to require an outflow of resources
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Correct Answer: B. 67
Explanation:
25% of 270 = 25/100 × 270 = 67.
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Correct Answer: B. indirect tax
Explanation:
indirect tax is the term that matches the description: a tax imposed on transactions, goods or services
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Correct Answer: B. a resource controlled by an entity that is expected to provide future benefit
Explanation:
asset refers to a resource controlled by an entity that is expected to provide future benefit
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Correct Answer: C. dividing incompatible responsibilities among different people
Explanation:
segregation of duties refers to dividing incompatible responsibilities among different people