Correct Answer:
A. Debit
Assets increase with debits and normally have debit balances.
November 13, 2026 · Accounting and Finance MCQs, Financial Accounting MCQs
The normal balance of an asset account is:
Related MCQs
The Federal Consolidated Fund of Pakistan is established under:
A.
Article 78 of the Constitution
B.
Article 62 of the Constitution
C.
Article 100 of the Constitution
D.
Article 184 of the Constitution
Correct answer is:
A. Article 78 of the Constitution
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The ability-to-pay principle of taxation says that:
A.
People should pay tax according to benefits received
B.
Everyone pays the same amount
C.
People with higher income or wealth should pay more tax
D.
Only businesses pay tax
Correct answer is:
C. People with higher income or wealth should pay more tax
Do you agree with this answer?
The crowding-out effect refers to:
A.
Private investment increasing government revenue
B.
Government borrowing raising interest rates and reducing private investment
C.
Government spending reducing unemployment
D.
Taxes reducing consumption only
Correct answer is:
B. Government borrowing raising interest rates and reducing private investment
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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
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Control risk is the risk that a material misstatement:
A.
Will not be detected by the auditor's procedures
B.
Occurs because of changes in tax law
C.
Occurs only in cash transactions
D.
Will not be prevented or detected on a timely basis by the entity's internal control
Correct answer is:
D. Will not be prevented or detected on a timely basis by the entity's internal control
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Under the accrual basis of accounting in the public sector, transactions are recognized when:
A.
Cash is received only
B.
Cash is paid only
C.
They occur, regardless of when cash is received or paid
D.
The budget is approved
Correct answer is:
C. They occur, regardless of when cash is received or paid
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