Correct Answer:
D. 15%
ROI = 150,000 / 1,000,000 = 15%.
November 13, 2026 · Accounting and Finance MCQs, Cost & Management Accounting MCQs
Operating income is Rs. 150,000 and average invested assets are Rs. 1,000,000. Return on investment (ROI) is:
Related MCQs
Lapse of appropriation means that:
A.
Unspent funds carry forward automatically
B.
The budget is increased
C.
Unspent budget allocations expire at the end of the fiscal year
D.
Audit is cancelled
Correct answer is:
C. Unspent budget allocations expire at the end of the fiscal year
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A share buyback (repurchase) generally:
A.
Increases the number of shares outstanding
B.
Reduces the number of shares outstanding
C.
Raises new equity
D.
Has no effect on cash
Correct answer is:
B. Reduces the number of shares outstanding
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IPSAS (International Public Sector Accounting Standards) are issued by:
A.
International Accounting Standards Board (IASB)
B.
International Monetary Fund (IMF)
C.
International Public Sector Accounting Standards Board (IPSASB)
D.
World Bank
Correct answer is:
C. International Public Sector Accounting Standards Board (IPSASB)
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Control risk is the risk that a material misstatement:
A.
Will not be detected by the auditor's procedures
B.
Occurs because of changes in tax law
C.
Occurs only in cash transactions
D.
Will not be prevented or detected on a timely basis by the entity's internal control
Correct answer is:
D. Will not be prevented or detected on a timely basis by the entity's internal control
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A long association of the same audit partner with a client mainly creates which threat?
A.
Self-review threat
B.
Advocacy threat
C.
Liquidity threat
D.
Familiarity threat
Correct answer is:
D. Familiarity threat
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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.
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Correct answer is:
C. Current assets minus current liabilities
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