Correct Answer:
B. Economy, efficiency and effectiveness of an entity's operations
The three Es are economy, efficiency and effectiveness.
November 13, 2026 · Accounting and Finance MCQs, Auditing MCQs
Performance (value-for-money) audit examines the:
Related MCQs
An accrued expense is an expense that has been:
A.
Paid in advance
B.
Paid and recorded as an asset
C.
Neither incurred nor paid
D.
Incurred but not yet paid, shown as a liability
Correct answer is:
D. Incurred but not yet paid, shown as a liability
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The indirect method of preparing the cash flow from operating activities starts with:
A.
Cash received from customers
B.
Cash paid to suppliers
C.
Closing cash balance
D.
Profit before tax or net profit adjusted for non-cash items and working capital changes
Correct answer is:
D. Profit before tax or net profit adjusted for non-cash items and working capital changes
Do you agree with this answer?
In double-entry bookkeeping, every transaction:
A.
Affects only one account
B.
Is recorded only as a debit
C.
Is recorded only in the cash book
D.
Affects at least two accounts with total debits equal to total credits
Correct answer is:
D. Affects at least two accounts with total debits equal to total credits
Do you agree with this answer?
The National Finance Commission (NFC) is constituted under:
A.
Article 90 of the Constitution
B.
Article 140 of the Constitution
C.
Article 175 of the Constitution
D.
Article 160 of the Constitution
Correct answer is:
D. Article 160 of the Constitution
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?
EBIT is Rs. 300,000 and interest expense is Rs. 60,000. The times interest earned ratio is:
A.
0.2 times
B.
4 times
C.
6 times
D.
5 times
Correct answer is:
D. 5 times
Do you agree with this answer?
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