Correct Answer:
A. Lists expenditure by inputs such as salaries and supplies
It is simple and good for control but weak in showing results.
November 13, 2026 · Accounting and Finance MCQs, Public Finance & Budgeting MCQs
Line-item budgeting is a budget format that:
Related MCQs
The fundamental qualitative characteristics of useful financial information are:
A.
Comparability and timeliness
B.
Relevance and faithful representation
C.
Verifiability and understandability
D.
Materiality and prudence
Correct answer is:
B. Relevance and faithful representation
Do you agree with this answer?
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?
Regularity audit in the public sector comprises:
A.
Performance audit only
B.
Financial audit and compliance audit
C.
Tax audit only
D.
Environmental audit only
Correct answer is:
B. Financial audit and compliance audit
Do you agree with this answer?
According to the NPV rule, an independent project should be accepted if its NPV is:
A.
Negative
B.
Positive
C.
Zero or negative
D.
Equal to the initial investment
Correct answer is:
B. Positive
Do you agree with this answer?
Dividends are Rs. 30,000 and net income is Rs. 100,000. The dividend payout ratio is:
A.
70%
B.
3.3%
C.
300%
D.
30%
Correct answer is:
D. 30%
Do you agree with this answer?
Actual hours are 90, standard hours allowed are 100 and the standard rate is Rs. 20. The labor efficiency variance is:
A.
Rs. 200 favorable
B.
Rs. 200 adverse
C.
Rs. 1,800 favorable
D.
Rs. 2,000 adverse
Correct answer is:
A. Rs. 200 favorable
Do you agree with this answer?
Leave a Reply