Correct Answer:
B. Reduce the risk of error, fraud and misappropriation by dividing incompatible functions
No single official should handle authorization, custody and recording of a transaction.
November 13, 2026 · Accounting and Finance MCQs, Public Sector Accounting & Auditing MCQs
In public sector internal control, the main purpose of segregation of duties is to:
Related MCQs
Under the direct write-off method, when a specific receivable is written off as bad:
A.
Accounts receivable is debited and sales is credited
B.
Cash is debited and receivables is credited
C.
Bad debt expense is debited and accounts receivable is credited
D.
Allowance for doubtful debts is debited and cash is credited
Correct answer is:
C. Bad debt expense is debited and accounts receivable is credited
Do you agree with this answer?
A major limitation of the payback period method is that it:
A.
Is too complicated to calculate
B.
Uses discounted cash flows
C.
Ignores the time value of money and cash flows after the payback period
D.
Considers all cash flows over the project life
Correct answer is:
C. Ignores the time value of money and cash flows after the payback period
Do you agree with this answer?
Public debt is best described as:
A.
The accumulated stock of past government borrowing
B.
The annual budget deficit only
C.
The tax revenue of a year
D.
The money supply
Correct answer is:
A. The accumulated stock of past government borrowing
Do you agree with this answer?
Actual quantity used is 480 units, standard quantity allowed is 500 units and the standard price is Rs. 10. The material usage variance is:
A.
Rs. 200 adverse
B.
Rs. 200 favorable
C.
Rs. 5,000 favorable
D.
Rs. 4,800 adverse
Correct answer is:
B. Rs. 200 favorable
Do you agree with this answer?
A contingency fund is:
A.
A fund kept to meet urgent unforeseen expenditure
B.
A fund for planned salaries
C.
A fund for repayment of loans only
D.
A private fund of officers
Correct answer is:
A. A fund kept to meet urgent unforeseen expenditure
Do you agree with this answer?
The normal balance of an asset account is:
A.
Debit
B.
Credit
C.
Zero
D.
Either debit or credit depending on the month
Correct answer is:
A. Debit
Do you agree with this answer?
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