Correct Answer:
A. Progressive income tax and unemployment benefits
Automatic stabilizers work without new government decisions.
November 13, 2026 · Accounting and Finance MCQs, Public Finance & Budgeting MCQs
An example of an automatic stabilizer is:
Related MCQs
Beta measures:
A.
Unsystematic risk
B.
Liquidity of a security
C.
Systematic (market) risk of a security
D.
Dividend yield
Correct answer is:
C. Systematic (market) risk of a security
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?
Pre-audit means that:
A.
Bills and claims are checked before payment is made
B.
Accounts are checked after payment
C.
The audit is done by the court
D.
Audit is skipped
Correct answer is:
A. Bills and claims are checked before payment is made
Do you agree with this answer?
Contribution margin is Rs. 120,000 and operating income is Rs. 30,000. The degree of operating leverage is:
A.
0.25
B.
3
C.
90,000
D.
4
Correct answer is:
D. 4
Do you agree with this answer?
Audit sampling means applying audit procedures to:
A.
Every item in the population
B.
Only the largest item in the population
C.
Less than 100% of items in a population so that all sampling units have a chance of selection
D.
Items chosen by management
Correct answer is:
C. Less than 100% of items in a population so that all sampling units have a chance of selection
Do you agree with this answer?
Conversion cost is the sum of:
A.
Direct materials and direct labor
B.
Direct materials and factory overhead
C.
Direct labor and factory overhead
D.
Selling and administrative expenses
Correct answer is:
C. Direct labor and factory overhead
Do you agree with this answer?
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