Correct Answer:
D. Existence of inventory
Attending the count helps verify that inventory exists and is in the condition reported.
November 13, 2026 · Accounting and Finance MCQs, Auditing MCQs
Observation of the client’s physical inventory count mainly provides evidence of:
Related MCQs
The Public Account of the Federation is used for:
A.
Paying salaries only
B.
Moneys received by the Government other than the Consolidated Fund, such as deposits and trust funds
C.
Voting on the budget
D.
Collecting customs duty
Correct answer is:
B. Moneys received by the Government other than the Consolidated Fund, such as deposits and trust funds
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An investment of Rs. 100,000 generates equal annual cash inflows of Rs. 25,000. The payback period is:
A.
2.5 years
B.
5 years
C.
4 years
D.
0.25 years
Correct answer is:
C. 4 years
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Actual price is Rs. 12, standard price is Rs. 10 and 500 units were purchased. The material price variance is:
A.
Rs. 1,000 adverse
B.
Rs. 1,000 favorable
C.
Rs. 5,000 adverse
D.
Rs. 600 adverse
Correct answer is:
A. Rs. 1,000 adverse
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Kaizen costing focuses on:
A.
A one-time large cost cut during design
B.
Continuous small cost reductions during the manufacturing stage
C.
Increasing prices every year
D.
Ignoring costs after production begins
Correct answer is:
B. Continuous small cost reductions during the manufacturing stage
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An impairment loss arises when:
A.
The asset's market price rises
B.
Depreciation is charged
C.
The carrying amount of an asset exceeds its recoverable amount
D.
An asset is fully depreciated
Correct answer is:
C. The carrying amount of an asset exceeds its recoverable amount
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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
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