Correct Answer:
A. Investing activities
Acquisition of long-term assets is an investing activity.
November 13, 2026 · Accounting and Finance MCQs, Financial Accounting MCQs
Purchase of equipment for cash is classified as a cash flow from:
Related MCQs
Compared with an external auditor, an internal auditor is mainly:
A.
An employee or function inside the entity that evaluates risk management, control and governance
B.
Appointed by the tax authority to check returns
C.
Responsible for giving an opinion to shareholders
D.
Prohibited from reporting to the audit committee
Correct answer is:
A. An employee or function inside the entity that evaluates risk management, control and governance
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An example of a direct tax is:
A.
Sales tax
B.
Customs duty
C.
Excise duty
D.
Income tax
Correct answer is:
D. Income tax
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Which of the following is NOT a component of internal control in the COSO framework?
A.
Audit sampling
B.
Control environment
C.
Risk assessment process
D.
Monitoring of controls
Correct answer is:
A. Audit sampling
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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
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According to the NPV rule, an independent project should be accepted if its NPV is:
A.
Negative
B.
Positive
C.
Zero or negative
D.
Equal to the initial investment
Correct answer is:
B. Positive
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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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