MCQ Collection
PPSC Accounts Audit Finance MCQs
Practice PPSC Accounts Audit Finance questions with answers and explanations.
Choose an option to check your answer.
Correct Answer: D. the assertion that items are recorded at appropriate amounts
Explanation:
valuation assertion refers to the assertion that items are recorded at appropriate amounts
Choose an option to check your answer.
Correct Answer: D. 21
Explanation:
15 + 6 = 21.
Choose an option to check your answer.
Correct Answer: B. a list of ledger balances used to check debit–credit equality
Explanation:
trial balance refers to a list of ledger balances used to check debit–credit equality
Choose an option to check your answer.
Correct Answer: B. internal control
Explanation:
internal control is the term that matches the description: a process designed to support reliable reporting, operations and compliance
Choose an option to check your answer.
Correct Answer: B. the assertion that recorded assets or liabilities exist
Explanation:
existence assertion refers to the assertion that recorded assets or liabilities exist
Choose an option to check your answer.
Correct Answer: C. segregation of duties
Explanation:
segregation of duties is the term that matches the description: dividing incompatible responsibilities among different people
Choose an option to check your answer.
Correct Answer: A. equity
Explanation:
equity is the term that matches the description: the residual interest in assets after deducting liabilities
Choose an option to check your answer.
Correct Answer: D. external audit
Explanation:
external audit is the term that matches the description: an audit performed by an independent external auditor
Choose an option to check your answer.
Correct Answer: B. information used by an auditor to support conclusions
Explanation:
audit evidence refers to information used by an auditor to support conclusions
Choose an option to check your answer.
Correct Answer: D. the assumption that an entity will continue operating for the foreseeable future
Explanation:
going concern refers to the assumption that an entity will continue operating for the foreseeable future
Choose an option to check your answer.
Correct Answer: C. a present obligation expected to require an outflow of resources
Explanation:
liability refers to a present obligation expected to require an outflow of resources
Choose an option to check your answer.
Correct Answer: B. independence
Explanation:
independence is the term that matches the description: freedom from relationships that compromise objective judgement