Correct Answer:
A. A fund kept to meet urgent unforeseen expenditure
It is used for unexpected spending, subject to later regularization by the legislature.
November 13, 2026 · Accounting and Finance MCQs, Public Sector Accounting & Auditing MCQs
A contingency fund is:
Related MCQs
Net profit is Rs. 50,000 and sales are Rs. 400,000. The net profit margin is:
A.
8%
B.
20%
C.
12.5%
D.
125%
Correct answer is:
C. 12.5%
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INTOSAI stands for:
A.
International Office of Standard Audit and Investigation
B.
International Organization of Supreme Audit Institutions
C.
International Organization of Statutory Auditors and Inspectors
D.
Institute of National Taxation and Statistics
Correct answer is:
B. International Organization of Supreme Audit Institutions
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The date of the auditor's report should be:
A.
The first day of the financial year
B.
No earlier than the date on which the auditor obtained sufficient appropriate evidence to support the opinion
C.
The date of the annual general meeting only
D.
Any date chosen by management
Correct answer is:
B. No earlier than the date on which the auditor obtained sufficient appropriate evidence to support the opinion
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Unearned (deferred) revenue is reported as:
A.
An asset
B.
Revenue of the current period
C.
An expense
D.
A liability
Correct answer is:
D. A liability
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An example of a direct tax is:
A.
Sales tax
B.
Customs duty
C.
Excise duty
D.
Income tax
Correct answer is:
D. Income tax
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A bond with a 10% coupon will sell at par if the market interest rate is:
A.
8%
B.
10%
C.
12%
D.
5%
Correct answer is:
B. 10%
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