Correct Answer:
D. Capital expenditure
Costs necessary to bring an asset to working condition are capitalized.
November 13, 2026 · Accounting and Finance MCQs, Financial Accounting MCQs
The cost of installing a new machine in a factory is:
Related MCQs
A qualified audit certificate on government accounts may be given when:
A.
The accounts are perfect
B.
The auditor finds material errors or is unable to obtain sufficient evidence on specific items
C.
The department refuses to pay audit fees
D.
The budget is surplus
Correct answer is:
B. The auditor finds material errors or is unable to obtain sufficient evidence on specific items
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An audit committee is mainly responsible for:
A.
Preparing the financial statements
B.
Setting the audit fees without any approval
C.
Selling the company's assets
D.
Overseeing financial reporting, internal control and the audit process on behalf of the board
Correct answer is:
D. Overseeing financial reporting, internal control and the audit process on behalf of the board
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Risk-free rate is 5%, beta is 1.2 and expected market return is 10%. The cost of equity under CAPM is:
A.
11%
B.
12%
C.
6%
D.
10%
Correct answer is:
A. 11%
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Lapse of appropriation means that:
A.
Unspent funds carry forward automatically
B.
The budget is increased
C.
Unspent budget allocations expire at the end of the fiscal year
D.
Audit is cancelled
Correct answer is:
C. Unspent budget allocations expire at the end of the fiscal year
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According to IAS 2, inventories are measured at:
A.
The higher of cost and selling price
B.
Selling price always
C.
The lower of cost and net realizable value
D.
Replacement cost only
Correct answer is:
C. The lower of cost and net realizable value
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The Public Account of the Federation under Article 78(2) includes:
A.
Only tax revenue
B.
Only foreign loans
C.
Only provincial taxes
D.
All other moneys received by or on behalf of the Federal Government that are not part of the Federal Consolidated Fund
Correct answer is:
D. All other moneys received by or on behalf of the Federal Government that are not part of the Federal Consolidated Fund
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