Correct Answer:
A. Transfer of funds from one head or sub-head to another within the same grant
It is a budgetary adjustment of funds within sanctioned limits and rules.
November 13, 2026 · Accounting and Finance MCQs, Public Sector Accounting & Auditing MCQs
Re-appropriation means:
Related MCQs
The agency problem arises from a conflict of interest between:
A.
Customers and suppliers
B.
Managers and shareholders
C.
Auditors and tax officers
D.
Employees and customers
Correct answer is:
B. Managers and shareholders
Do you agree with this answer?
The principal budget factor is:
A.
The factor that limits the activities of an organization
B.
The largest expense
C.
The total of sales
D.
The profit target
Correct answer is:
A. The factor that limits the activities of an organization
Do you agree with this answer?
Beta measures:
A.
Unsystematic risk
B.
Liquidity of a security
C.
Systematic (market) risk of a security
D.
Dividend yield
Correct answer is:
C. Systematic (market) risk of a security
Do you agree with this answer?
Under the accrual basis of accounting in the public sector, transactions are recognized when:
A.
Cash is received only
B.
Cash is paid only
C.
They occur, regardless of when cash is received or paid
D.
The budget is approved
Correct answer is:
C. They occur, regardless of when cash is received or paid
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?
The benefit principle of taxation says that:
A.
Taxes should depend only on income
B.
Taxes should be equal for everyone
C.
Taxes should be paid according to the benefits received from government services
D.
Taxes should be avoided
Correct answer is:
C. Taxes should be paid according to the benefits received from government services
Do you agree with this answer?
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