MCQ Collection
FPSC Accounts Audit Finance MCQs
Practice FPSC Accounts Audit Finance questions with answers and explanations.
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Correct Answer: B. analytical procedure
Explanation:
analytical procedure is the term that matches the description: evaluation of plausible relationships among financial and non-financial data
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Correct Answer: B. current assets divided by current liabilities
Explanation:
current ratio refers to current assets divided by current liabilities
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Correct Answer: C. an input device that digitises paper documents
Explanation:
scanner refers to an input device that digitises paper documents
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Correct Answer: B. 6
Explanation:
Divide both sides by 5: x = 30/5 = 6.
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Correct Answer: D. credit
Explanation:
credit is the term that matches the description: the right side of a ledger account
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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
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Correct Answer: B. 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: C. the risk that internal controls fail to prevent or detect a misstatement
Explanation:
control risk refers to the risk that internal controls fail to prevent or detect a misstatement
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Correct Answer: B. a tax imposed on transactions, goods or services
Explanation:
indirect tax refers to a tax imposed on transactions, goods or services
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Correct Answer: A. authorisation control
Explanation:
authorisation control is the term that matches the description: requiring approval before specified transactions occur
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Correct Answer: A. comparing independent records and resolving differences
Explanation:
reconciliation refers to comparing independent records and resolving differences
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Correct Answer: A. control risk
Explanation:
control risk is the term that matches the description: the risk that internal controls fail to prevent or detect a misstatement