Correct Answer:
B. Non-exchange transactions
In non-exchange transactions an entity receives value without directly giving equal value in return.
November 13, 2026 · Accounting and Finance MCQs, Public Sector Accounting & Auditing MCQs
According to IPSAS 23, taxes and transfers are classified as:
Related MCQs
Zero-based budgeting (ZBB) requires that:
A.
Last year's budget be increased by inflation
B.
Every expenditure be justified from zero in each budget cycle
C.
Budgets be zero in the first year
D.
No deficit be allowed
Correct answer is:
B. Every expenditure be justified from zero in each budget cycle
Do you agree with this answer?
Prime cost is the sum of:
A.
Direct materials and factory overhead
B.
Direct labor and factory overhead
C.
Indirect materials and indirect labor
D.
Direct materials, direct labor and direct expenses
Correct answer is:
D. Direct materials, direct labor and direct expenses
Do you agree with this answer?
Risk-free rate is 5%, beta is 1.2 and expected market return is 10%. The cost of equity under CAPM is:
A.
11%
B.
12%
C.
6%
D.
10%
Correct answer is:
A. 11%
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 business entity concept states that:
A.
The owner and business are the same person
B.
The business is a separate accounting unit from its owner
C.
The business has no obligations
D.
Only companies are entities
Correct answer is:
B. The business is a separate accounting unit from its owner
Do you agree with this answer?
Under IAS 16, property, plant and equipment is initially measured at:
A.
Cost
B.
Net realizable value
C.
Selling price
D.
Fair value less tax
Correct answer is:
A. Cost
Do you agree with this answer?
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