MCQ Collection
KPPSC Accounts Audit Finance MCQs
Practice KPPSC Accounts Audit Finance questions with answers and explanations.
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Correct Answer: D. 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. inherent risk
Explanation:
inherent risk is the term that matches the description: susceptibility to misstatement before considering controls
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Correct Answer: D. observation
Explanation:
observation is the term that matches the description: watching a process or procedure being performed
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Correct Answer: D. the residual interest in assets after deducting liabilities
Explanation:
equity refers to the residual interest in assets after deducting liabilities
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Correct Answer: B. segregation of duties
Explanation:
segregation of duties is the term that matches the description: dividing incompatible responsibilities among different people
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Correct Answer: A. accommodation
Explanation:
“Accommodation” has double c and double m.
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Correct Answer: A. 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: C. careful judgement under uncertainty without deliberate bias
Explanation:
prudence refers to careful judgement under uncertainty without deliberate bias
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Correct Answer: C. opaque
Explanation:
“opaque” is the antonym of “transparent”.
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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: D. the assertion that all required items have been recorded
Explanation:
completeness assertion refers to the assertion that all required items have been recorded
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Correct Answer: D. rare
Explanation:
“rare” is a synonym of “scarce”.