Correct Answer:
A. Inventory
Inventory is the least liquid current asset, so it is excluded.
November 13, 2026 · Accounting and Finance MCQs, Financial Accounting MCQs
The quick (acid test) ratio excludes which item from current assets?
Related MCQs
Performance audit in the public sector is concerned with:
A.
Only the accuracy of cash books
B.
Only legal compliance
C.
Only tax collection
D.
Economy, efficiency and effectiveness of government programs
Correct answer is:
D. Economy, efficiency and effectiveness of government programs
Do you agree with this answer?
Key Audit Matters (KAMs) under ISA 701 are:
A.
Matters that always lead to a qualified opinion
B.
Fraud cases reported to police
C.
Items listed only in the management letter
D.
Matters of most significance in the audit of the current period, communicated in the auditor's report
Correct answer is:
D. Matters of most significance in the audit of the current period, communicated in the auditor's report
Do you agree with this answer?
A budget deficit occurs when:
A.
Government expenditure exceeds government revenue
B.
Government revenue exceeds expenditure
C.
Revenue equals expenditure
D.
Public debt is zero
Correct answer is:
A. Government expenditure exceeds government revenue
Do you agree with this answer?
Total variable cost:
A.
Remains constant regardless of activity
B.
Changes in direct proportion to changes in activity level
C.
Decreases as activity increases
D.
Is always zero
Correct answer is:
B. Changes in direct proportion to changes in activity level
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?
Bank charges shown on the bank statement but not yet recorded in the cash book should be:
A.
Deducted from the cash book balance
B.
Added to the cash book balance
C.
Deducted from the bank statement balance
D.
Ignored until next year
Correct answer is:
A. Deducted from the cash book balance
Do you agree with this answer?
Leave a Reply