Correct Answer:
C. The price at which goods or services are transferred between divisions of the same organization
Transfer pricing affects divisional performance measurement.
November 13, 2026 · Accounting and Finance MCQs, Cost & Management Accounting MCQs
A transfer price is:
Related MCQs
PIFRA stands for:
A.
Project to Improve Financial Reporting and Auditing
B.
Public Institution for Revenue Administration
C.
Planning Institute for Fiscal Reform and Accounting
D.
Project for Increasing Finance and Revenue Assessment
Correct answer is:
A. Project to Improve Financial Reporting and Auditing
Do you agree with this answer?
The historical cost concept requires assets to be recorded at:
A.
Current market value always
B.
Their original purchase cost
C.
Replacement cost always
D.
Expected selling price
Correct answer is:
B. Their original purchase cost
Do you agree with this answer?
A qualified audit certificate on government accounts may be given when:
A.
The accounts are perfect
B.
The auditor finds material errors or is unable to obtain sufficient evidence on specific items
C.
The department refuses to pay audit fees
D.
The budget is surplus
Correct answer is:
B. The auditor finds material errors or is unable to obtain sufficient evidence on specific items
Do you agree with this answer?
The National Finance Commission (NFC) is constituted under:
A.
Article 90 of the Constitution
B.
Article 140 of the Constitution
C.
Article 175 of the Constitution
D.
Article 160 of the Constitution
Correct answer is:
D. Article 160 of the Constitution
Do you agree with this answer?
The basic accounting equation is:
A.
Assets = Liabilities + Equity
B.
Assets = Liabilities - Equity
C.
Assets + Liabilities = Equity
D.
Equity = Assets + Liabilities
Correct answer is:
A. Assets = Liabilities + Equity
Do you agree with this answer?
An adverse opinion is issued when the effects of misstatements are:
A.
Material but not pervasive
B.
Trivial and isolated
C.
Both material and pervasive
D.
Related only to disclosures of no importance
Correct answer is:
C. Both material and pervasive
Do you agree with this answer?
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