MCQ Collection
BPSC Accounts Audit Finance MCQs
Practice BPSC Accounts Audit Finance questions with answers and explanations.
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Correct Answer: D. journal
Explanation:
journal is the term that matches the description: the book of original entry
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Correct Answer: D. 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: D. the risk of an inappropriate audit opinion when statements are materially misstated
Explanation:
audit risk refers to the risk of an inappropriate audit opinion when statements are materially misstated
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Correct Answer: A. subsidy
Explanation:
subsidy is the term that matches the description: financial support intended to reduce cost or encourage an activity
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Correct Answer: B. recurrent expenditure
Explanation:
recurrent expenditure is the term that matches the description: regular operating expenditure
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Correct Answer: A. the risk that audit procedures fail to detect a misstatement
Explanation:
detection risk refers to the risk that audit procedures fail to detect a misstatement
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Correct Answer: A. examining records, documents or tangible assets
Explanation:
inspection refers to examining records, documents or tangible assets
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Correct Answer: A. income arising from ordinary activities
Explanation:
revenue refers to income arising from ordinary activities
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Correct Answer: A. an audit procedure designed to detect material misstatements
Explanation:
substantive procedure refers to an audit procedure designed to detect material misstatements
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Correct Answer: A. the book of original entry
Explanation:
journal refers to the book of original entry
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Correct Answer: D. authorisation control
Explanation:
authorisation control is the term that matches the description: requiring approval before specified transactions occur
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Correct Answer: B. recognition of income or expense when earned or incurred rather than only when cash moves
Explanation:
accrual refers to recognition of income or expense when earned or incurred rather than only when cash moves