Correct Answer:
D. Is in line with standards of financial rectitude and sound financial principles, even if technically within rules
Propriety goes beyond legal sanction to ask whether public money was spent wisely and honestly.
November 13, 2026 · Accounting and Finance MCQs, Public Sector Accounting & Auditing MCQs
Propriety audit examines whether expenditure:
Related MCQs
Under variable (direct) costing, fixed manufacturing overhead is treated as:
A.
A product cost
B.
A period cost
C.
A direct material cost
D.
An asset
Correct answer is:
B. A period cost
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A tax expenditure is:
A.
Money spent on collecting taxes
B.
Salaries of tax officers
C.
Tax refunds paid by mistake
D.
Revenue forgone by government through exemptions, deductions and concessions
Correct answer is:
D. Revenue forgone by government through exemptions, deductions and concessions
Do you agree with this answer?
A just-in-time (JIT) system aims to:
A.
Keep large safety stocks
B.
Reduce inventory by producing or buying only when needed
C.
Produce in large batches for future demand
D.
Increase the number of suppliers
Correct answer is:
B. Reduce inventory by producing or buying only when needed
Do you agree with this answer?
Public debt is best described as:
A.
The accumulated stock of past government borrowing
B.
The annual budget deficit only
C.
The tax revenue of a year
D.
The money supply
Correct answer is:
A. The accumulated stock of past government borrowing
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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
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The Public Account of the Federation under Article 78(2) includes:
A.
Only tax revenue
B.
Only foreign loans
C.
Only provincial taxes
D.
All other moneys received by or on behalf of the Federal Government that are not part of the Federal Consolidated Fund
Correct answer is:
D. All other moneys received by or on behalf of the Federal Government that are not part of the Federal Consolidated Fund
Do you agree with this answer?
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