Correct Answer:
C. Government spending and taxation to influence the economy
Monetary policy is controlled by the central bank; fiscal policy by the government.
November 13, 2026 · Accounting and Finance MCQs, Public Finance & Budgeting MCQs
Fiscal policy is the use of:
Related MCQs
The cost of a machine bought last year and already paid for is, in a new investment decision:
A.
A relevant cash outflow
B.
A future opportunity cost
C.
Added to the project cost
D.
A sunk cost and ignored
Correct answer is:
D. A sunk cost and ignored
Do you agree with this answer?
The matching principle requires that:
A.
Expenses are recorded in the same period as the revenues they helped to earn
B.
Debits equal credits
C.
Assets equal liabilities
D.
Revenues are recorded when cash is received
Correct answer is:
A. Expenses are recorded in the same period as the revenues they helped to earn
Do you agree with this answer?
The present value of a perpetuity paying Rs. 5,000 per year at a discount rate of 10% is:
A.
Rs. 5,000
B.
Rs. 50,000
C.
Rs. 500
D.
Rs. 55,000
Correct answer is:
B. Rs. 50,000
Do you agree with this answer?
Cost-benefit analysis of public projects compares:
A.
Only the private profits
B.
Social costs and social benefits of the project
C.
Only the initial costs
D.
Tax revenue with expenditure of the entire government
Correct answer is:
B. Social costs and social benefits of the project
Do you agree with this answer?
Fixed costs are Rs. 90,000 and the contribution margin ratio is 30%. The break-even sales value is:
A.
Rs. 270,000
B.
Rs. 300,000
C.
Rs. 120,000
D.
Rs. 900,000
Correct answer is:
B. Rs. 300,000
Do you agree with this answer?
An auditor holding shares in the audited client creates which type of threat?
A.
Self-interest threat
B.
Advocacy threat
C.
Familiarity threat
D.
Intimidation threat
Correct answer is:
A. Self-interest threat
Do you agree with this answer?
Leave a Reply