Correct Answer:
D. Affects at least two accounts with total debits equal to total credits
Each transaction has a dual effect so debits always equal credits.
November 13, 2026 · Accounting and Finance MCQs, Financial Accounting MCQs
In double-entry bookkeeping, every transaction:
Related MCQs
Job order costing is most suitable for:
A.
Custom-made products such as construction projects or printing orders
B.
Continuous production of identical items such as cement
C.
Oil refining
D.
Sugar milling
Correct answer is:
A. Custom-made products such as construction projects or printing orders
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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?
A transfer price is:
A.
The price charged to external customers
B.
The price of raw materials from suppliers only
C.
The price at which goods or services are transferred between divisions of the same organization
D.
A government-regulated price
Correct answer is:
C. The price at which goods or services are transferred between divisions of the same organization
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Financial independence of a Supreme Audit Institution means that:
A.
It has adequate resources and control over its budget to perform its mandate
B.
It is financed by the audited entities
C.
It has no budget
D.
It depends on ministers for funds each month
Correct answer is:
A. It has adequate resources and control over its budget to perform its mandate
Do you agree with this answer?
What is the main objective of an external audit of financial statements?
A.
To express an opinion on whether the financial statements are prepared, in all material respects, in accordance with the applicable reporting framework
B.
To prepare the financial statements of the entity
C.
To guarantee that the entity will remain profitable in the future
D.
To detect and prevent every fraud in the entity
Correct answer is:
A. To express an opinion on whether the financial statements are prepared, in all material respects, in accordance with the applicable reporting framework
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Market price per share is Rs. 90 and EPS is Rs. 6. The price-earnings (P/E) ratio is:
A.
0.067
B.
540
C.
96
D.
15
Correct answer is:
D. 15
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