Correct Answer:
C. A deduction from trade receivables
It is a contra-asset account with a credit balance.
November 13, 2026 · Accounting and Finance MCQs, Financial Accounting MCQs
The allowance for doubtful debts is presented in the statement of financial position as:
Related MCQs
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?
An auditor holding shares in the audited client creates which type of threat?
A.
Self-interest threat
B.
Advocacy threat
C.
Familiarity threat
D.
Intimidation threat
Correct answer is:
A. Self-interest threat
Do you agree with this answer?
A share buyback (repurchase) generally:
A.
Increases the number of shares outstanding
B.
Reduces the number of shares outstanding
C.
Raises new equity
D.
Has no effect on cash
Correct answer is:
B. Reduces the number of shares outstanding
Do you agree with this answer?
Under IFRS 15, revenue is recognized when:
A.
A performance obligation is satisfied by transferring control of goods or services to the customer
B.
A contract is signed
C.
Cash is received in all cases
D.
The invoice is printed
Correct answer is:
A. A performance obligation is satisfied by transferring control of goods or services to the customer
Do you agree with this answer?
Primary balance is the fiscal balance:
A.
Including interest payments
B.
Excluding interest payments
C.
Excluding revenue
D.
Including only capital expenditure
Correct answer is:
B. Excluding interest payments
Do you agree with this answer?
Dividend per share is Rs. 5 and market price per share is Rs. 100. The dividend yield is:
A.
20%
B.
0.5%
C.
5%
D.
50%
Correct answer is:
C. 5%
Do you agree with this answer?
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