Correct Answer:
C. Will continue its operations for the foreseeable future
Assets are therefore not valued at forced-sale prices.
November 13, 2026 · Accounting and Finance MCQs, Financial Accounting MCQs
The going concern concept assumes that a business:
Related MCQs
Repayment of a long-term bank loan is classified as a cash flow from:
A.
Operating activities
B.
Investing activities
C.
Non-cash activities
D.
Financing activities
Correct answer is:
D. Financing activities
Do you agree with this answer?
Which of the following is an example of non-tax revenue?
A.
Royalties and fees for government services
B.
Income tax
C.
Sales tax
D.
Customs duty
Correct answer is:
A. Royalties and fees for government services
Do you agree with this answer?
Drawings made by the owner of a sole proprietorship:
A.
Reduce the owner's equity (capital)
B.
Increase the owner's equity
C.
Are recorded as business expenses
D.
Are recorded as revenue
Correct answer is:
A. Reduce the owner's equity (capital)
Do you agree with this answer?
Financial independence of a Supreme Audit Institution means that:
A.
It has adequate resources and control over its budget to perform its mandate
B.
It is financed by the audited entities
C.
It has no budget
D.
It depends on ministers for funds each month
Correct answer is:
A. It has adequate resources and control over its budget to perform its mandate
Do you agree with this answer?
Sensitivity analysis in capital budgeting examines:
A.
Only the best case scenario
B.
Past performance of the firm
C.
How changes in one input variable affect the project's NPV
D.
The effect of tax rates on dividends
Correct answer is:
C. How changes in one input variable affect the project's NPV
Do you agree with this answer?
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
Do you agree with this answer?
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