Correct Answer:
A. Overstatement (occurrence/existence)
Selecting recorded items and checking them to documents tests whether recorded items are real, i.e. overstatement.
November 13, 2026 · Accounting and Finance MCQs, Auditing MCQs
Vouching, which starts from the accounting records and traces back to supporting documents, is mainly used to test for:
Related MCQs
In zero-based budgeting, managers must:
A.
Add a fixed percentage to last year's budget
B.
Justify every budgeted item from zero in each budget period
C.
Use only last year's figures
D.
Avoid preparing a budget
Correct answer is:
B. Justify every budgeted item from zero in each budget period
Do you agree with this answer?
Which of the following is an intangible asset?
A.
A delivery van
B.
A patent
C.
Inventory
D.
Accounts receivable
Correct answer is:
B. A patent
Do you agree with this answer?
Standard costing is a technique in which:
A.
Only actual costs are recorded
B.
Costs are ignored
C.
Selling prices are fixed by law
D.
Predetermined costs are compared with actual costs to compute variances
Correct answer is:
D. Predetermined costs are compared with actual costs to compute variances
Do you agree with this answer?
A qualified opinion is issued when misstatements are:
A.
Material but not pervasive
B.
Both material and pervasive
C.
Immaterial
D.
Not found at all
Correct answer is:
A. Material but not pervasive
Do you agree with this answer?
The three categories of activities in a statement of cash flows are:
A.
Revenue, expenses and profit
B.
Operating, investing and financing
C.
Current, non-current and contingent
D.
Direct, indirect and mixed
Correct answer is:
B. Operating, investing and financing
Do you agree with this answer?
The normal balance of a revenue account is:
A.
Debit
B.
Zero
C.
Depends on the auditor
D.
Credit
Correct answer is:
D. Credit
Do you agree with this answer?
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