Correct Answer:
A. The accumulated stock of past government borrowing
Deficits are flows; debt is the stock built up over time.
November 13, 2026 · Accounting and Finance MCQs, Public Finance & Budgeting MCQs
Public debt is best described as:
Related MCQs
Irregular expenditure generally means expenditure:
A.
Incurred without compliance with rules, regulations or proper sanction
B.
That is within the budget and rules
C.
That is less than expected
D.
Made in a leap year
Correct answer is:
A. Incurred without compliance with rules, regulations or proper sanction
Do you agree with this answer?
Total debt is Rs. 400,000 and total equity is Rs. 200,000. The debt-to-equity ratio is:
A.
0.5
B.
2.0
C.
1.5
D.
3.0
Correct answer is:
B. 2.0
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?
Key Audit Matters (KAMs) under ISA 701 are:
A.
Matters that always lead to a qualified opinion
B.
Fraud cases reported to police
C.
Items listed only in the management letter
D.
Matters of most significance in the audit of the current period, communicated in the auditor's report
Correct answer is:
D. Matters of most significance in the audit of the current period, communicated in the auditor's report
Do you agree with this answer?
Tracing from source documents (e.g. goods received notes) to the accounting records mainly tests:
A.
Occurrence
B.
Rights and obligations
C.
Presentation
D.
Completeness
Correct answer is:
D. Completeness
Do you agree with this answer?
The crowding-out effect refers to:
A.
Private investment increasing government revenue
B.
Government borrowing raising interest rates and reducing private investment
C.
Government spending reducing unemployment
D.
Taxes reducing consumption only
Correct answer is:
B. Government borrowing raising interest rates and reducing private investment
Do you agree with this answer?
Leave a Reply