Correct Answer:
B. Short-term government securities issued at a discount
T-bills have maturities of one year or less.
November 13, 2026 · Accounting and Finance MCQs, Public Finance & Budgeting MCQs
Treasury bills (T-bills) are:
Related MCQs
Sensitivity analysis in capital budgeting examines:
A.
Only the best case scenario
B.
Past performance of the firm
C.
How changes in one input variable affect the project's NPV
D.
The effect of tax rates on dividends
Correct answer is:
C. How changes in one input variable affect the project's NPV
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The principle of annuality in budgeting means that:
A.
Taxes are paid yearly
B.
Debt is repaid in one year
C.
Public servants are appointed yearly
D.
Budget authority is granted for one fiscal year at a time
Correct answer is:
D. Budget authority is granted for one fiscal year at a time
Do you agree with this answer?
Under the ISAs, analytical procedures are required to be performed at which stages of the audit?
A.
Only when fraud is suspected
B.
Only during the interim visit
C.
Risk assessment and the overall review near the end of the audit
D.
Only for listed companies
Correct answer is:
C. Risk assessment and the overall review near the end of the audit
Do you agree with this answer?
What is the main objective of an external audit of financial statements?
A.
To express an opinion on whether the financial statements are prepared, in all material respects, in accordance with the applicable reporting framework
B.
To prepare the financial statements of the entity
C.
To guarantee that the entity will remain profitable in the future
D.
To detect and prevent every fraud in the entity
Correct answer is:
A. To express an opinion on whether the financial statements are prepared, in all material respects, in accordance with the applicable reporting framework
Do you agree with this answer?
Inherent risk is the susceptibility of an assertion to material misstatement:
A.
After considering all internal controls
B.
Only due to auditor's errors
C.
Before considering any related internal controls
D.
Only in government organizations
Correct answer is:
C. Before considering any related internal controls
Do you agree with this answer?
Subsequent events are events occurring:
A.
Before the beginning of the financial year
B.
Only after the AGM
C.
During the interim audit only
D.
Between the date of the financial statements and the date of the auditor's report
Correct answer is:
D. Between the date of the financial statements and the date of the auditor's report
Do you agree with this answer?
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