Correct Answer:
A. Management of the entity
Management prepares the financial statements and the auditor expresses an opinion on them.
November 13, 2026 · Accounting and Finance MCQs, Auditing MCQs
Who is primarily responsible for preparing the financial statements?
Related MCQs
The historical cost concept requires assets to be recorded at:
A.
Current market value always
B.
Their original purchase cost
C.
Replacement cost always
D.
Expected selling price
Correct answer is:
B. Their original purchase cost
Do you agree with this answer?
In a regressive tax system:
A.
The average tax rate rises as income rises
B.
The tax rate is the same for all
C.
Only high incomes are taxed
D.
The average tax rate falls as income rises
Correct answer is:
D. The average tax rate falls as income rises
Do you agree with this answer?
The Federal Consolidated Fund includes:
A.
Only income tax
B.
All revenues received by the Federal Government, loans raised and money received in repayment of loans
C.
Only foreign aid
D.
Only trust money
Correct answer is:
B. All revenues received by the Federal Government, loans raised and money received in repayment of loans
Do you agree with this answer?
As production volume increases within the relevant range, fixed cost per unit:
A.
Decreases
B.
Increases
C.
Stays the same
D.
Becomes zero
Correct answer is:
A. Decreases
Do you agree with this answer?
Under the accrual basis of accounting in the public sector, transactions are recognized when:
A.
Cash is received only
B.
Cash is paid only
C.
They occur, regardless of when cash is received or paid
D.
The budget is approved
Correct answer is:
C. They occur, regardless of when cash is received or paid
Do you agree with this answer?
The matching principle requires that:
A.
Expenses are recorded in the same period as the revenues they helped to earn
B.
Debits equal credits
C.
Assets equal liabilities
D.
Revenues are recorded when cash is received
Correct answer is:
A. Expenses are recorded in the same period as the revenues they helped to earn
Do you agree with this answer?
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