Correct Answer:
C. Unspent funds that will not be needed are returned to the government before the end of the fiscal year
Departments must surrender anticipated savings so they can be used elsewhere.
November 13, 2026 · Accounting and Finance MCQs, Public Sector Accounting & Auditing MCQs
Surrender of savings means that:
Related MCQs
Current assets are Rs. 250,000, inventory is Rs. 100,000 and current liabilities are Rs. 100,000. The quick ratio is:
A.
1.5
B.
2.5
C.
1.0
D.
0.4
Correct answer is:
A. 1.5
Do you agree with this answer?
When shares are issued at a price above their par value, the excess is credited to:
A.
Retained earnings
B.
Share premium
C.
Revenue
D.
Loan account
Correct answer is:
B. Share premium
Do you agree with this answer?
Actual hours are 90, standard hours allowed are 100 and the standard rate is Rs. 20. The labor efficiency variance is:
A.
Rs. 200 favorable
B.
Rs. 200 adverse
C.
Rs. 1,800 favorable
D.
Rs. 2,000 adverse
Correct answer is:
A. Rs. 200 favorable
Do you agree with this answer?
Auditor independence consists of:
A.
Independence of audit fees only
B.
Independence from the auditing standards
C.
Independence of mind and independence in appearance
D.
Independence from the audit working papers
Correct answer is:
C. Independence of mind and independence in appearance
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Under the weighted average cost method, the cost per unit is calculated as:
A.
The cost of the latest purchase
B.
The cost of the oldest purchase
C.
Total cost of goods available divided by total units available
D.
The selling price less profit
Correct answer is:
C. Total cost of goods available divided by total units available
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An unmodified (clean) audit opinion means that the financial statements:
A.
Are completely free of any error
B.
Prove that the entity is financially strong
C.
Give a true and fair view or present fairly, in all material respects
D.
Have been prepared by the auditor
Correct answer is:
C. Give a true and fair view or present fairly, in all material respects
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