Correct Answer:
B. Their original purchase cost
Under this concept, assets are initially recorded at the amount paid to acquire them.
November 13, 2026 · Accounting and Finance MCQs, Financial Accounting MCQs
The historical cost concept requires assets to be recorded at:
Related MCQs
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?
A proportional (flat) tax:
A.
Charges higher rates on higher incomes
B.
Charges the same percentage rate at all income levels
C.
Charges lower rates on higher incomes
D.
Exempts all incomes
Correct answer is:
B. Charges the same percentage rate at all income levels
Do you agree with this answer?
Fund accounting is commonly used in the public sector because:
A.
Government has no assets
B.
All money is treated as one pool
C.
It avoids the need for budgets
D.
Resources are separated into funds according to purposes or legal restrictions
Correct answer is:
D. Resources are separated into funds according to purposes or legal restrictions
Do you agree with this answer?
Auditor independence consists of:
A.
Independence of audit fees only
B.
Independence from the auditing standards
C.
Independence of mind and independence in appearance
D.
Independence from the audit working papers
Correct answer is:
C. Independence of mind and independence in appearance
Do you agree with this answer?
Stock audit in a government department is intended to:
A.
Verify the physical existence and proper record of stores and stock
B.
Count cash in the treasury
C.
Check payroll only
D.
Verify tax assessments
Correct answer is:
A. Verify the physical existence and proper record of stores and stock
Do you agree with this answer?
A by-product is a product that:
A.
Has the greatest sales value of all products
B.
Is produced after the split-off by choice
C.
Cannot be sold
D.
Has a relatively minor sales value compared with the main product
Correct answer is:
D. Has a relatively minor sales value compared with the main product
Do you agree with this answer?
Leave a Reply