Correct Answer:
A. Reduce the owner's equity (capital)
Drawings are withdrawals of business assets by the owner for personal use and reduce capital.
November 13, 2026 · Accounting and Finance MCQs, Financial Accounting MCQs
Drawings made by the owner of a sole proprietorship:
Related MCQs
Fiscal federalism deals with:
A.
The monetary policy of the central bank
B.
Only international trade
C.
Only local taxes
D.
The division of revenue-raising and spending responsibilities among levels of government
Correct answer is:
D. The division of revenue-raising and spending responsibilities among levels of government
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Computer-assisted audit techniques (CAATs) are used by auditors to:
A.
Replace professional judgment entirely
B.
Prepare the client's tax returns
C.
Avoid documenting the audit
D.
Analyze large volumes of electronic data and test systems and controls
Correct answer is:
D. Analyze large volumes of electronic data and test systems and controls
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Value for money in public audit refers to:
A.
Obtaining the best outcome from resources spent, with economy, efficiency and effectiveness
B.
Spending as little as possible regardless of outcome
C.
Spending the entire budget
D.
Maximizing revenue only
Correct answer is:
A. Obtaining the best outcome from resources spent, with economy, efficiency and effectiveness
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The four main stages of the budget cycle are:
A.
Printing, signing, filing and storing
B.
Taxation, borrowing, lending and spending
C.
Formulation, legislative approval, execution, and audit and evaluation
D.
Planning, hiring, training and retiring
Correct answer is:
C. Formulation, legislative approval, execution, and audit and evaluation
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Under IFRS 15, revenue is recognized when:
A.
A performance obligation is satisfied by transferring control of goods or services to the customer
B.
A contract is signed
C.
Cash is received in all cases
D.
The invoice is printed
Correct answer is:
A. A performance obligation is satisfied by transferring control of goods or services to the customer
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Which of the following is an example of a public sector fraud risk indicator?
A.
Payments approved with full documentation
B.
Competitive bidding with several bidders
C.
Payments split into smaller amounts to avoid approval limits
D.
Regular stock verification
Correct answer is:
C. Payments split into smaller amounts to avoid approval limits
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