MCQ Collection
FPSC Accounts Audit Finance MCQs
Practice FPSC Accounts Audit Finance questions with answers and explanations.
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Correct Answer: A. prepayment
Explanation:
prepayment is the term that matches the description: payment made before the related benefit is consumed
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Correct Answer: D. audit evidence
Explanation:
audit evidence is the term that matches the description: information used by an auditor to support conclusions
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Correct Answer: C. recording each transaction with equal debit and credit effects
Explanation:
double-entry system refers to recording each transaction with equal debit and credit effects
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Correct Answer: C. bank reconciliation
Explanation:
bank reconciliation is the term that matches the description: a comparison of cash-book and bank-statement balances
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Correct Answer: A. fiscal policy
Explanation:
fiscal policy is the term that matches the description: government use of taxation and expenditure to influence the economy
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Correct Answer: A. 30
Explanation:
25% of 120 = 25/100 × 120 = 30.
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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. freedom from relationships that compromise objective judgement
Explanation:
independence refers to freedom from relationships that compromise objective judgement
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Correct Answer: B. closing inventory
Explanation:
closing inventory is the term that matches the description: inventory remaining at the end of an accounting period
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Correct Answer: D. susceptibility to misstatement before considering controls
Explanation:
inherent risk refers to susceptibility to misstatement before considering controls
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Correct Answer: B. 1824
Explanation:
Simple interest = P×R×T/100 = 7600×8×3/100 = 1824.
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Correct Answer: A. budget
Explanation:
budget is the term that matches the description: a financial plan of expected revenue and expenditure