Correct Answer:
D. NPV of the project equals zero
IRR equates the present value of inflows to the present value of outflows.
November 13, 2026 · Accounting and Finance MCQs, Financial Management & Analysis MCQs
The internal rate of return (IRR) is the discount rate at which:
Related MCQs
The Laffer curve shows the relationship between:
A.
Tax rates and tax revenue
B.
Inflation and unemployment
C.
Income and consumption
D.
Interest rates and investment
Correct answer is:
A. Tax rates and tax revenue
Do you agree with this answer?
The Auditor-General of Pakistan is appointed by:
A.
The Prime Minister
B.
The Chief Justice
C.
The Speaker of the National Assembly
D.
The President
Correct answer is:
D. The President
Do you agree with this answer?
According to Modigliani and Miller (no taxes), the value of a firm:
A.
Increases as debt increases
B.
Decreases as debt increases
C.
Depends on the dividend policy only
D.
Is independent of its capital structure
Correct answer is:
D. Is independent of its capital structure
Do you agree with this answer?
A department has no opening WIP, completes 1,000 units and has 400 units in closing WIP that are 50% complete for conversion. Equivalent units for conversion cost are:
A.
1,200
B.
1,400
C.
1,000
D.
1,600
Correct answer is:
A. 1,200
Do you agree with this answer?
Which of the following is NOT a component of internal control in the COSO framework?
A.
Audit sampling
B.
Control environment
C.
Risk assessment process
D.
Monitoring of controls
Correct answer is:
A. Audit sampling
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?
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