Correct Answer:
D. Existence of the receivables
Receivable confirmations mainly support the existence (and rights) assertion for the balance.
November 13, 2026 · Accounting and Finance MCQs, Auditing MCQs
An external confirmation of accounts receivable balances mainly provides evidence about:
Related MCQs
In a bank reconciliation, outstanding (unpresented) cheques are:
A.
Deducted from the bank statement balance to find the adjusted bank balance
B.
Added to the bank statement balance
C.
Deducted from the cash book balance
D.
Ignored
Correct answer is:
A. Deducted from the bank statement balance to find the adjusted bank balance
Do you agree with this answer?
EBIT is Rs. 200,000 and interest is Rs. 50,000. The degree of financial leverage is approximately:
A.
4.0
B.
0.75
C.
1.33
D.
1.25
Correct answer is:
C. 1.33
Do you agree with this answer?
The three categories of activities in a statement of cash flows are:
A.
Revenue, expenses and profit
B.
Operating, investing and financing
C.
Current, non-current and contingent
D.
Direct, indirect and mixed
Correct answer is:
B. Operating, investing and financing
Do you agree with this answer?
IPSAS 1 deals with:
A.
Presentation of financial statements
B.
Inventories
C.
Leases
D.
Borrowing costs
Correct answer is:
A. Presentation of financial statements
Do you agree with this answer?
A Drawing and Disbursing Officer (DDO) is an officer who:
A.
Audits the accounts of a department
B.
Prepares the national budget
C.
Collects customs duty
D.
Draws money from the treasury or bank on bills and disburses it
Correct answer is:
D. Draws money from the treasury or bank on bills and disburses it
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?
Leave a Reply