Correct Answer:
B. Discuss and settle audit paras between audit and the department's Principal Accounting Officer
DAC meetings help resolve or settle audit observations before reporting to PAC.
November 13, 2026 · Accounting and Finance MCQs, Public Sector Accounting & Auditing MCQs
The Departmental Accounts Committee (DAC) meeting is held to:
Related MCQs
Which of the following errors will NOT be disclosed by a trial balance?
A.
Posting a debit entry on the credit side only
B.
Wrong addition of a ledger account
C.
Posting only one side of an entry
D.
Complete omission of a transaction from the books
Correct answer is:
D. Complete omission of a transaction from the books
Do you agree with this answer?
The imprest cash system in a government office means that:
A.
No cash is ever kept
B.
Cash is deposited daily with no records
C.
All payments are made in kind
D.
A fixed amount of cash is kept for petty expenses and replenished on submission of vouchers
Correct answer is:
D. A fixed amount of cash is kept for petty expenses and replenished on submission of vouchers
Do you agree with this answer?
The time value of money means that:
A.
Money loses value only when it is spent
B.
Future money is worth more than present money
C.
Money available today is worth more than the same amount in the future
D.
Interest rates do not matter
Correct answer is:
C. Money available today is worth more than the same amount in the future
Do you agree with this answer?
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?
A management representation letter:
A.
Is written confirmation from management that supports other audit evidence but cannot replace it
B.
Is enough evidence on its own for any assertion
C.
Is issued by the auditor to the shareholders
D.
Is needed only for sole proprietorships
Correct answer is:
A. Is written confirmation from management that supports other audit evidence but cannot replace it
Do you agree with this answer?
The internal rate of return (IRR) is the discount rate at which:
A.
NPV is maximum
B.
Payback period is one year
C.
Accounting profit is zero
D.
NPV of the project equals zero
Correct answer is:
D. NPV of the project equals zero
Do you agree with this answer?
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