Correct Answer:
D. 5 times
TIE = 300,000 / 60,000 = 5.
November 13, 2026 · Accounting and Finance MCQs, Financial Management & Analysis MCQs
EBIT is Rs. 300,000 and interest expense is Rs. 60,000. The times interest earned ratio is:
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In double-entry bookkeeping, every transaction:
A.
Affects only one account
B.
Is recorded only as a debit
C.
Is recorded only in the cash book
D.
Affects at least two accounts with total debits equal to total credits
Correct answer is:
D. Affects at least two accounts with total debits equal to total credits
Do you agree with this answer?
Inherent risk is the susceptibility of an assertion to material misstatement:
A.
After considering all internal controls
B.
Only due to auditor's errors
C.
Before considering any related internal controls
D.
Only in government organizations
Correct answer is:
C. Before considering any related internal controls
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?
Total debt is Rs. 400,000 and total equity is Rs. 200,000. The debt-to-equity ratio is:
A.
0.5
B.
2.0
C.
1.5
D.
3.0
Correct answer is:
B. 2.0
Do you agree with this answer?
The imprest cash system in a government office means that:
A.
No cash is ever kept
B.
Cash is deposited daily with no records
C.
All payments are made in kind
D.
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Correct answer is:
D. A fixed amount of cash is kept for petty expenses and replenished on submission of vouchers
Do you agree with this answer?
The key difference between fraud and error is that fraud is:
A.
An intentional act involving deception
B.
Always immaterial
C.
Always committed by outsiders
D.
Detected only by internal auditors
Correct answer is:
A. An intentional act involving deception
Do you agree with this answer?
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