Correct Answer:
D. Incurred but not yet paid, shown as a liability
Accrued expenses such as unpaid wages are liabilities at the reporting date.
November 13, 2026 · Accounting and Finance MCQs, Financial Accounting MCQs
An accrued expense is an expense that has been:
Related MCQs
The Public Account of the Federation under Article 78(2) includes:
A.
Only tax revenue
B.
Only foreign loans
C.
Only provincial taxes
D.
All other moneys received by or on behalf of the Federal Government that are not part of the Federal Consolidated Fund
Correct answer is:
D. All other moneys received by or on behalf of the Federal Government that are not part of the Federal Consolidated Fund
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?
The present value of a perpetuity paying Rs. 5,000 per year at a discount rate of 10% is:
A.
Rs. 5,000
B.
Rs. 50,000
C.
Rs. 500
D.
Rs. 55,000
Correct answer is:
B. Rs. 50,000
Do you agree with this answer?
Audit risk is the risk that the auditor:
A.
Loses the client
B.
Charges a lower audit fee
C.
Gives an inappropriate opinion when the financial statements are materially misstated
D.
Does not attend the physical inventory count
Correct answer is:
C. Gives an inappropriate opinion when the financial statements are materially misstated
Do you agree with this answer?
A department has no opening WIP, completes 1,000 units and has 400 units in closing WIP that are 50% complete for conversion. Equivalent units for conversion cost are:
A.
1,200
B.
1,400
C.
1,000
D.
1,600
Correct answer is:
A. 1,200
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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