Correct Answer:
C. Among the provinces
Vertical distribution is between Federation and provinces; horizontal is among provinces.
November 13, 2026 · Accounting and Finance MCQs, Public Finance & Budgeting MCQs
Horizontal distribution under the NFC award refers to the sharing of resources:
Related MCQs
In a regressive tax system:
A.
The average tax rate rises as income rises
B.
The tax rate is the same for all
C.
Only high incomes are taxed
D.
The average tax rate falls as income rises
Correct answer is:
D. The average tax rate falls as income rises
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Net working capital is calculated as:
A.
Total assets minus total liabilities
B.
Current assets plus current liabilities
C.
Current assets minus current liabilities
D.
Fixed assets minus long-term debt
Correct answer is:
C. Current assets minus current liabilities
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
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In capital budgeting, depreciation is relevant only because of its effect on:
A.
Cash outflow at the start
B.
Taxes (the depreciation tax shield)
C.
Working capital
D.
The discount rate
Correct answer is:
B. Taxes (the depreciation tax shield)
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In a bank reconciliation, outstanding (unpresented) cheques are:
A.
Deducted from the bank statement balance to find the adjusted bank balance
B.
Added to the bank statement balance
C.
Deducted from the cash book balance
D.
Ignored
Correct answer is:
A. Deducted from the bank statement balance to find the adjusted bank balance
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Tracing from source documents (e.g. goods received notes) to the accounting records mainly tests:
A.
Occurrence
B.
Rights and obligations
C.
Presentation
D.
Completeness
Correct answer is:
D. Completeness
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