Correct Answer:
B. Reduces the number of shares outstanding
The company uses cash to buy its own shares, so shares outstanding fall.
November 13, 2026 · Accounting and Finance MCQs, Financial Management & Analysis MCQs
A share buyback (repurchase) generally:
Related MCQs
Computer-assisted audit techniques (CAATs) are used by auditors to:
A.
Replace professional judgment entirely
B.
Prepare the client's tax returns
C.
Avoid documenting the audit
D.
Analyze large volumes of electronic data and test systems and controls
Correct answer is:
D. Analyze large volumes of electronic data and test systems and controls
Do you agree with this answer?
Total expenditure is Rs. 1,000 billion, total revenue is Rs. 800 billion and interest payments are Rs. 120 billion. The primary deficit is:
A.
Rs. 200 billion
B.
Rs. 320 billion
C.
Rs. 120 billion
D.
Rs. 80 billion
Correct answer is:
D. Rs. 80 billion
Do you agree with this answer?
The Mexico Declaration on SAI Independence emphasizes:
A.
Independence of central banks
B.
Independence of courts only
C.
Independence of political parties
D.
Independence of Supreme Audit Institutions
Correct answer is:
D. Independence of Supreme Audit Institutions
Do you agree with this answer?
Audit of local government (local fund) accounts mainly examines:
A.
Only federal taxes
B.
Only foreign aid
C.
Receipts and expenditure of local bodies for compliance with applicable laws and rules
D.
Only defense spending
Correct answer is:
C. Receipts and expenditure of local bodies for compliance with applicable laws and rules
Do you agree with this answer?
Tax incidence refers to:
A.
The date on which the tax is due
B.
The rate of tax
C.
Who finally bears the burden of a tax
D.
The number of taxpayers
Correct answer is:
C. Who finally bears the burden of a tax
Do you agree with this answer?
A proportional (flat) tax:
A.
Charges higher rates on higher incomes
B.
Charges the same percentage rate at all income levels
C.
Charges lower rates on higher incomes
D.
Exempts all incomes
Correct answer is:
B. Charges the same percentage rate at all income levels
Do you agree with this answer?
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