Correct Answer:
A. A benefit received by third parties who did not pay for it, such as from vaccination
Examples include education and immunization.
November 13, 2026 · Accounting and Finance MCQs, Public Finance & Budgeting MCQs
A positive externality is:
Related MCQs
The Federal Consolidated Fund includes:
A.
Only income tax
B.
All revenues received by the Federal Government, loans raised and money received in repayment of loans
C.
Only foreign aid
D.
Only trust money
Correct answer is:
B. All revenues received by the Federal Government, loans raised and money received in repayment of loans
Do you agree with this answer?
A major limitation of the payback period method is that it:
A.
Is too complicated to calculate
B.
Uses discounted cash flows
C.
Ignores the time value of money and cash flows after the payback period
D.
Considers all cash flows over the project life
Correct answer is:
C. Ignores the time value of money and cash flows after the payback period
Do you agree with this answer?
According to Modigliani and Miller (no taxes), the value of a firm:
A.
Increases as debt increases
B.
Decreases as debt increases
C.
Depends on the dividend policy only
D.
Is independent of its capital structure
Correct answer is:
D. Is independent of its capital structure
Do you agree with this answer?
In a regressive tax system:
A.
The average tax rate rises as income rises
B.
The tax rate is the same for all
C.
Only high incomes are taxed
D.
The average tax rate falls as income rises
Correct answer is:
D. The average tax rate falls as income rises
Do you agree with this answer?
Which of the following errors will NOT be disclosed by a trial balance?
A.
Posting a debit entry on the credit side only
B.
Wrong addition of a ledger account
C.
Posting only one side of an entry
D.
Complete omission of a transaction from the books
Correct answer is:
D. Complete omission of a transaction from the books
Do you agree with this answer?
Which of the following is NOT a component of internal control in the COSO framework?
A.
Audit sampling
B.
Control environment
C.
Risk assessment process
D.
Monitoring of controls
Correct answer is:
A. Audit sampling
Do you agree with this answer?
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