Correct Answer:
B. Allocation, distribution and stabilization
These are the resource allocation, income distribution and economic stabilization branches.
November 13, 2026 · Accounting and Finance MCQs, Public Finance & Budgeting MCQs
According to Musgrave, the three functions of government in public finance are:
Related MCQs
Which body issues the International Standards on Auditing (ISAs)?
A.
International Accounting Standards Board (IASB)
B.
International Auditing and Assurance Standards Board (IAASB)
C.
International Monetary Fund (IMF)
D.
World Trade Organization (WTO)
Correct answer is:
B. International Auditing and Assurance Standards Board (IAASB)
Do you agree with this answer?
Cost of goods sold is calculated as:
A.
Opening inventory - purchases + closing inventory
B.
Opening inventory + purchases - closing inventory
C.
Purchases + sales - closing inventory
D.
Sales - closing inventory
Correct answer is:
B. Opening inventory + purchases - closing inventory
Do you agree with this answer?
The cut-off assertion is concerned with whether:
A.
Assets are properly insured
B.
Transactions and events are recorded in the correct accounting period
C.
Employees are paid on time
D.
Taxes are paid before the deadline
Correct answer is:
B. Transactions and events are recorded in the correct accounting period
Do you agree with this answer?
The future value of Rs. 10,000 invested for 2 years at 10% compound interest is:
A.
Rs. 12,100
B.
Rs. 12,000
C.
Rs. 11,000
D.
Rs. 10,200
Correct answer is:
A. Rs. 12,100
Do you agree with this answer?
The Public Account of the Federation is used for:
A.
Paying salaries only
B.
Moneys received by the Government other than the Consolidated Fund, such as deposits and trust funds
C.
Voting on the budget
D.
Collecting customs duty
Correct answer is:
B. Moneys received by the Government other than the Consolidated Fund, such as deposits and trust funds
Do you agree with this answer?
The Laffer curve shows the relationship between:
A.
Tax rates and tax revenue
B.
Inflation and unemployment
C.
Income and consumption
D.
Interest rates and investment
Correct answer is:
A. Tax rates and tax revenue
Do you agree with this answer?
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