Fixed costs are Rs. 60,000, selling price is Rs. 50 per unit and variable cost is Rs. 30 per unit. The break-even point in units is:

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

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

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

Performance audit in the public sector is concerned with:

A. Only the accuracy of cash books

B. Only legal compliance

C. Only tax collection

D. Economy, efficiency and effectiveness of government programs

Repayment of a long-term bank loan is classified as a cash flow from:

A. Operating activities

B. Investing activities

C. Non-cash activities

D. Financing activities

The assertion 'rights and obligations' means that:

A. All assets are physically present

B. All sales are cash sales

C. The entity holds or controls the rights to assets and liabilities are its obligations

D. Management has the right to appoint the auditor

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