Correct Answer:
A. There is a present obligation from a past event, an outflow is probable and a reliable estimate can be made
All three conditions must be met for recognition.
November 13, 2026 · Accounting and Finance MCQs, Financial Accounting MCQs
Under IAS 37, a provision is recognized when:
Related MCQs
PIFRA stands for:
A.
Project to Improve Financial Reporting and Auditing
B.
Public Institution for Revenue Administration
C.
Planning Institute for Fiscal Reform and Accounting
D.
Project for Increasing Finance and Revenue Assessment
Correct answer is:
A. Project to Improve Financial Reporting and Auditing
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According to IPSAS 23, taxes and transfers are classified as:
A.
Exchange transactions
B.
Non-exchange transactions
C.
Capital transactions
D.
Contingent assets
Correct answer is:
B. Non-exchange transactions
Do you agree with this answer?
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
Do you agree with this answer?
The fundamental qualitative characteristics of useful financial information are:
A.
Comparability and timeliness
B.
Relevance and faithful representation
C.
Verifiability and understandability
D.
Materiality and prudence
Correct answer is:
B. Relevance and faithful representation
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The yield to maturity (YTM) of a bond is:
A.
The coupon rate
B.
The internal rate of return earned if the bond is held to maturity
C.
The current dividend yield
D.
The face value divided by price
Correct answer is:
B. The internal rate of return earned if the bond is held to maturity
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Opportunity cost is:
A.
The cost already incurred in the past
B.
The cost of buying raw materials
C.
The total of fixed costs
D.
The benefit given up by choosing one alternative over the next best alternative
Correct answer is:
D. The benefit given up by choosing one alternative over the next best alternative
Do you agree with this answer?
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