Correct Answer:
C. Unspent budget allocations expire at the end of the fiscal year
Under annuality, grants lapse at year end unless law allows otherwise.
November 13, 2026 · Accounting and Finance MCQs, Public Sector Accounting & Auditing MCQs
Lapse of appropriation means that:
Related MCQs
The principle of annuality in budgeting means that:
A.
Taxes are paid yearly
B.
Debt is repaid in one year
C.
Public servants are appointed yearly
D.
Budget authority is granted for one fiscal year at a time
Correct answer is:
D. Budget authority is granted for one fiscal year at a time
Do you agree with this answer?
Professional skepticism means the auditor:
A.
Maintains a questioning mind and critically assesses audit evidence
B.
Assumes management is dishonest
C.
Accepts management explanations without verification
D.
Avoids communicating with management
Correct answer is:
A. Maintains a questioning mind and critically assesses audit evidence
Do you agree with this answer?
The accounts of the Federation are compiled by:
A.
The Securities and Exchange Commission
B.
The Pakistan Bureau of Statistics
C.
The Election Commission
D.
The Controller General of Accounts
Correct answer is:
D. The Controller General of Accounts
Do you agree with this answer?
In process costing, the weighted average method:
A.
Keeps opening WIP costs separate from current costs
B.
Ignores opening WIP
C.
Ignores current period costs
D.
Combines the cost of opening WIP with current period costs
Correct answer is:
D. Combines the cost of opening WIP with current period costs
Do you agree with this answer?
Performance (value-for-money) audit examines the:
A.
Accuracy of the trial balance only
B.
Economy, efficiency and effectiveness of an entity's operations
C.
Tax liability only
D.
Share price movements
Correct answer is:
B. Economy, efficiency and effectiveness of an entity's operations
Do you agree with this answer?
According to IPSAS 23, taxes and transfers are classified as:
A.
Exchange transactions
B.
Non-exchange transactions
C.
Capital transactions
D.
Contingent assets
Correct answer is:
B. Non-exchange transactions
Do you agree with this answer?
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