Correct Answer:
B. At the beginning of each period
An ordinary annuity pays at the end of each period.
November 13, 2026 · Accounting and Finance MCQs, Financial Management & Analysis MCQs
An annuity due is an annuity in which payments are made:
Related MCQs
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?
A management representation letter:
A.
Is written confirmation from management that supports other audit evidence but cannot replace it
B.
Is enough evidence on its own for any assertion
C.
Is issued by the auditor to the shareholders
D.
Is needed only for sole proprietorships
Correct answer is:
A. Is written confirmation from management that supports other audit evidence but cannot replace it
Do you agree with this answer?
Who has primary responsibility for the prevention and detection of fraud?
A.
The external auditor only
B.
The shareholders only
C.
The tax authority
D.
Management and those charged with governance
Correct answer is:
D. Management and those charged with governance
Do you agree with this answer?
The ability-to-pay principle of taxation says that:
A.
People should pay tax according to benefits received
B.
Everyone pays the same amount
C.
People with higher income or wealth should pay more tax
D.
Only businesses pay tax
Correct answer is:
C. People with higher income or wealth should pay more tax
Do you agree with this answer?
Financial independence of a Supreme Audit Institution means that:
A.
It has adequate resources and control over its budget to perform its mandate
B.
It is financed by the audited entities
C.
It has no budget
D.
It depends on ministers for funds each month
Correct answer is:
A. It has adequate resources and control over its budget to perform its mandate
Do you agree with this answer?
A major limitation of the payback period method is that it:
A.
Is too complicated to calculate
B.
Uses discounted cash flows
C.
Ignores the time value of money and cash flows after the payback period
D.
Considers all cash flows over the project life
Correct answer is:
C. Ignores the time value of money and cash flows after the payback period
Do you agree with this answer?
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