Correct Answer:
A. Economy, efficiency and effectiveness
Economy is minimizing cost, efficiency is output per input and effectiveness is achieving objectives.
November 13, 2026 · Accounting and Finance MCQs, Public Sector Accounting & Auditing MCQs
The three Es of performance auditing are:
Related MCQs
A cash budget shows:
A.
Only credit sales
B.
Profit for the year
C.
Expected cash receipts and payments and the resulting cash balance
D.
Depreciation schedules only
Correct answer is:
C. Expected cash receipts and payments and the resulting cash balance
Do you agree with this answer?
Public debt is best described as:
A.
The accumulated stock of past government borrowing
B.
The annual budget deficit only
C.
The tax revenue of a year
D.
The money supply
Correct answer is:
A. The accumulated stock of past government borrowing
Do you agree with this answer?
The quick (acid test) ratio excludes which item from current assets?
A.
Inventory
B.
Cash
C.
Trade receivables
D.
Short-term investments
Correct answer is:
A. Inventory
Do you agree with this answer?
When NPV and IRR give conflicting rankings for mutually exclusive projects, the preferred criterion is generally:
A.
NPV
B.
IRR
C.
Payback period
D.
Accounting rate of return
Correct answer is:
A. NPV
Do you agree with this answer?
A sunk cost is a cost that:
A.
Will be incurred in the future
B.
Differs between alternatives
C.
Is always variable
D.
Has already been incurred and cannot be recovered, so it is irrelevant to future decisions
Correct answer is:
D. Has already been incurred and cannot be recovered, so it is irrelevant to future decisions
Do you agree with this answer?
A just-in-time (JIT) system aims to:
A.
Keep large safety stocks
B.
Reduce inventory by producing or buying only when needed
C.
Produce in large batches for future demand
D.
Increase the number of suppliers
Correct answer is:
B. Reduce inventory by producing or buying only when needed
Do you agree with this answer?
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