Correct Answer:
C. Give a true and fair view or present fairly, in all material respects
An unmodified opinion states that the statements are fairly presented in all material respects; it is not a guarantee of accuracy.
November 13, 2026 · Accounting and Finance MCQs, Auditing MCQs
An unmodified (clean) audit opinion means that the financial statements:
Related MCQs
Incremental budgeting means:
A.
Preparing every budget from zero
B.
Adjusting the previous year's budget by a certain percentage or amount
C.
Using only actual expenditure
D.
Ignoring last year's figures
Correct answer is:
B. Adjusting the previous year's budget by a certain percentage or amount
Do you agree with this answer?
The pre-tax cost of debt is 10% and the tax rate is 30%. The after-tax cost of debt is:
A.
7%
B.
3%
C.
13%
D.
10%
Correct answer is:
A. 7%
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?
Normal loss in a process is:
A.
A loss caused by negligence charged to profit and loss
B.
A gain from efficient production
C.
An expected and unavoidable loss that is absorbed by the good units
D.
A sunk cost
Correct answer is:
C. An expected and unavoidable loss that is absorbed by the good units
Do you agree with this answer?
A proportional (flat) tax:
A.
Charges higher rates on higher incomes
B.
Charges the same percentage rate at all income levels
C.
Charges lower rates on higher incomes
D.
Exempts all incomes
Correct answer is:
B. Charges the same percentage rate at all income levels
Do you agree with this answer?
Overhead is under-absorbed when:
A.
Actual overhead is less than absorbed overhead
B.
Actual overhead equals absorbed overhead
C.
Actual overhead is greater than absorbed overhead
D.
Budgeted overhead is zero
Correct answer is:
C. Actual overhead is greater than absorbed overhead
Do you agree with this answer?
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