MCQ Collection
SPSC Accounts Audit Finance MCQs
Practice SPSC Accounts Audit Finance questions with answers and explanations.
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Correct Answer: D. a present obligation expected to require an outflow of resources
Explanation:
liability refers to a present obligation expected to require an outflow of resources
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Correct Answer: B. reconciliation
Explanation:
reconciliation is the term that matches the description: comparing independent records and resolving differences
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Correct Answer: B. an estimated liability of uncertain timing or amount
Explanation:
provision refers to an estimated liability of uncertain timing or amount
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Correct Answer: B. adverb
Explanation:
“Quickly” modifies an action and is an adverb.
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Correct Answer: D. existence assertion
Explanation:
existence assertion is the term that matches the description: the assertion that recorded assets or liabilities exist
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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. a questioning mind and critical assessment of evidence
Explanation:
professional scepticism refers to a questioning mind and critical assessment of evidence
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Correct Answer: C. the left side of a ledger account
Explanation:
debit refers to the left side of a ledger account
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Correct Answer: B. 25
Explanation:
18 + 7 = 25.
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Correct Answer: A. accrual
Explanation:
accrual is the term that matches the description: recognition of income or expense when earned or incurred rather than only when cash moves
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Correct Answer: D. 620
Explanation:
Simple interest = P×R×T/100 = 6200×5×2/100 = 620.
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Correct Answer: B. expense
Explanation:
expense is the term that matches the description: a cost consumed in earning revenue