Correct Answer:
D. Revenue forgone by government through exemptions, deductions and concessions
Tax expenditures act like spending delivered through the tax system.
November 13, 2026 · Accounting and Finance MCQs, Public Finance & Budgeting MCQs
A tax expenditure is:
Related MCQs
According to the NPV rule, an independent project should be accepted if its NPV is:
A.
Negative
B.
Positive
C.
Zero or negative
D.
Equal to the initial investment
Correct answer is:
B. Positive
Do you agree with this answer?
The normal balance of an asset account is:
A.
Debit
B.
Credit
C.
Zero
D.
Either debit or credit depending on the month
Correct answer is:
A. Debit
Do you agree with this answer?
Pakistan Investment Bonds (PIBs) are:
A.
Short-term overnight instruments
B.
Shares of the State Bank
C.
Foreign currency notes
D.
Medium to long-term government debt securities
Correct answer is:
D. Medium to long-term government debt securities
Do you agree with this answer?
The principle of annuality in budgeting means that:
A.
Taxes are paid yearly
B.
Debt is repaid in one year
C.
Public servants are appointed yearly
D.
Budget authority is granted for one fiscal year at a time
Correct answer is:
D. Budget authority is granted for one fiscal year at a time
Do you agree with this answer?
An audit to determine whether an entity has followed applicable laws, rules and regulations is called a:
A.
Statutory audit of cash only
B.
Compliance audit
C.
Forensic valuation
D.
Payroll review
Correct answer is:
B. Compliance audit
Do you agree with this answer?
Statistical sampling is characterized by:
A.
Selection of items based only on the auditor's judgment
B.
Random selection and use of probability theory to evaluate results
C.
Examining only unusual items
D.
Testing the first 50 items in the ledger
Correct answer is:
B. Random selection and use of probability theory to evaluate results
Do you agree with this answer?
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