Correct Answer:
C. Expected cash receipts and payments and the resulting cash balance
Cash budgets help plan borrowing and surplus investment.
November 13, 2026 · Accounting and Finance MCQs, Cost & Management Accounting MCQs
A cash budget shows:
Related MCQs
The fundamental qualitative characteristics of useful financial information are:
A.
Comparability and timeliness
B.
Relevance and faithful representation
C.
Verifiability and understandability
D.
Materiality and prudence
Correct answer is:
B. Relevance and faithful representation
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EBIT is Rs. 200,000 and interest is Rs. 50,000. The degree of financial leverage is approximately:
A.
4.0
B.
0.75
C.
1.33
D.
1.25
Correct answer is:
C. 1.33
Do you agree with this answer?
According to Musgrave, the three functions of government in public finance are:
A.
Taxation, borrowing and lending
B.
Allocation, distribution and stabilization
C.
Defense, health and education
D.
Revenue, expenditure and debt
Correct answer is:
B. Allocation, distribution and stabilization
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An external confirmation of accounts receivable balances mainly provides evidence about:
A.
Valuation of inventory
B.
Completeness of payables
C.
Compliance with tax law
D.
Existence of the receivables
Correct answer is:
D. Existence of the receivables
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An audit engagement letter is mainly used to:
A.
Record the agreed terms of the audit engagement between auditor and client
B.
Report the audit findings to the public
C.
Confirm receivable balances
D.
Appoint the internal auditor
Correct answer is:
A. Record the agreed terms of the audit engagement between auditor and client
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Under the imprest system of petty cash, the petty cash is:
A.
Never reimbursed
B.
Kept without a limit
C.
Reimbursed periodically to restore it to a fixed amount
D.
Recorded only in the ledger
Correct answer is:
C. Reimbursed periodically to restore it to a fixed amount
Do you agree with this answer?
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