Correct Answer:
B. Adjusting the previous year's budget by a certain percentage or amount
It is the most common traditional method but can perpetuate inefficiencies.
November 13, 2026 · Accounting and Finance MCQs, Public Finance & Budgeting MCQs
Incremental budgeting means:
Related MCQs
The main objective of government accounting is to:
A.
Maximize profit for the government
B.
Reduce the number of audits
C.
Provide accountability and stewardship over public resources
D.
Help private firms prepare tax returns
Correct answer is:
C. Provide accountability and stewardship over public resources
Do you agree with this answer?
Beta measures:
A.
Unsystematic risk
B.
Liquidity of a security
C.
Systematic (market) risk of a security
D.
Dividend yield
Correct answer is:
C. Systematic (market) risk of a security
Do you agree with this answer?
Who is primarily responsible for preparing the financial statements?
A.
Management of the entity
B.
The external auditor
C.
The tax authority
D.
The internal auditor only
Correct answer is:
A. Management of the entity
Do you agree with this answer?
A disclaimer of opinion is given when the auditor:
A.
Cannot obtain sufficient appropriate audit evidence and the possible effects are material and pervasive
B.
Finds that the financial statements are fairly presented
C.
Wants to avoid doing the audit work
D.
Finds minor errors in the cash book
Correct answer is:
A. Cannot obtain sufficient appropriate audit evidence and the possible effects are material and pervasive
Do you agree with this answer?
The Public Sector Development Programme (PSDP) mainly finances:
A.
Defense salaries
B.
Federal development projects
C.
Interest payments
D.
Pensions
Correct answer is:
B. Federal development projects
Do you agree with this answer?
A sunk cost is a cost that:
A.
Will be incurred in the future
B.
Differs between alternatives
C.
Is always variable
D.
Has already been incurred and cannot be recovered, so it is irrelevant to future decisions
Correct answer is:
D. Has already been incurred and cannot be recovered, so it is irrelevant to future decisions
Do you agree with this answer?
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