Correct Answer:
B. A patent
Patents have no physical substance and are intangible assets under IAS 38.
November 13, 2026 · Accounting and Finance MCQs, Financial Accounting MCQs
Which of the following is an intangible asset?
Related MCQs
The free-rider problem arises mainly in the case of:
A.
Private goods
B.
Luxury goods
C.
Public goods
D.
Inferior goods
Correct answer is:
C. Public goods
Do you agree with this answer?
Dividend per share is Rs. 5 and market price per share is Rs. 100. The dividend yield is:
A.
20%
B.
0.5%
C.
5%
D.
50%
Correct answer is:
C. 5%
Do you agree with this answer?
An external confirmation of accounts receivable balances mainly provides evidence about:
A.
Valuation of inventory
B.
Completeness of payables
C.
Compliance with tax law
D.
Existence of the receivables
Correct answer is:
D. Existence of the receivables
Do you agree with this answer?
The Lima Declaration of 1977 is concerned with:
A.
Guidelines on auditing precepts for public sector auditing
B.
Rules for the accounting of private companies
C.
Banking supervision
D.
Tax treaties
Correct answer is:
A. Guidelines on auditing precepts for public sector auditing
Do you agree with this answer?
Fixed costs are Rs. 60,000, selling price is Rs. 50 per unit and variable cost is Rs. 30 per unit. The break-even point in units is:
A.
3,000 units
B.
2,000 units
C.
1,200 units
D.
6,000 units
Correct answer is:
A. 3,000 units
Do you agree with this answer?
Performance (value-for-money) audit examines the:
A.
Accuracy of the trial balance only
B.
Economy, efficiency and effectiveness of an entity's operations
C.
Tax liability only
D.
Share price movements
Correct answer is:
B. Economy, efficiency and effectiveness of an entity's operations
Do you agree with this answer?
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