Correct Answer:
D. A sunk cost and ignored
Sunk costs are past costs that do not change with the decision.
November 13, 2026 · Accounting and Finance MCQs, Financial Management & Analysis MCQs
The cost of a machine bought last year and already paid for is, in a new investment decision:
Related MCQs
In vertical analysis, each item in a financial statement is expressed as a percentage of:
A.
The same item in the previous year
B.
Industry average
C.
A base figure such as total assets or sales in the same period
D.
Net profit only
Correct answer is:
C. A base figure such as total assets or sales in the same period
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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?
A prepaid expense is shown in the statement of financial position as:
A.
A current liability
B.
A current asset
C.
Equity
D.
Revenue
Correct answer is:
B. A current asset
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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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Process costing is most suitable for:
A.
Continuous mass production of homogeneous products
B.
Building a bridge to a customer's design
C.
Producing a single custom machine
D.
Repair of vehicles
Correct answer is:
A. Continuous mass production of homogeneous products
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Surrender of savings means that:
A.
Funds are spent quickly at year end
B.
Departments keep unspent money for the next year
C.
Unspent funds that will not be needed are returned to the government before the end of the fiscal year
D.
Savings are invested in bonds
Correct answer is:
C. Unspent funds that will not be needed are returned to the government before the end of the fiscal year
Do you agree with this answer?
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