MCQ Collection
PPSC Accounts Audit Finance MCQs
Practice PPSC Accounts Audit Finance questions with answers and explanations.
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Correct Answer: C. double-entry system
Explanation:
double-entry system is the term that matches the description: recording each transaction with equal debit and credit effects
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Correct Answer: B. detection risk
Explanation:
detection risk is the term that matches the description: the risk that audit procedures fail to detect a misstatement
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Correct Answer: A. the significance of information to users’ decisions
Explanation:
materiality refers to the significance of information to users’ decisions
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Correct Answer: A. professional scepticism
Explanation:
professional scepticism is the term that matches the description: a questioning mind and critical assessment of evidence
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Correct Answer: C. comparing independent records and resolving differences
Explanation:
reconciliation refers to comparing independent records and resolving differences
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Correct Answer: A. inspection
Explanation:
inspection is the term that matches the description: examining records, documents or tangible assets
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Correct Answer: C. rare
Explanation:
“rare” is a synonym of “scarce”.
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Correct Answer: B. progressive tax
Explanation:
progressive tax is the term that matches the description: a tax whose effective rate rises as the tax base increases
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Correct Answer: A. a tax imposed directly on income, wealth or profits
Explanation:
direct tax refers to a tax imposed directly on income, wealth or profits
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Correct Answer: A. observation
Explanation:
observation is the term that matches the description: watching a process or procedure being performed
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Correct Answer: C. formula
Explanation:
formula is the term that matches the description: an expression used to calculate a spreadsheet result
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Correct Answer: A. asset
Explanation:
asset is the term that matches the description: a resource controlled by an entity that is expected to provide future benefit