Accounting MCQs

A. Two
B. Three
C. Five
D. Six

A. Auditing
B. Vouching
C. Verification
D. Checking

A. Expression of opinion
B. Detection and prevention of fraud and error
C. Both (a) and (b)
D. Depends on the type of audit.

A. Blood haunt
B. Watch dog
C. May both according to situation
D. None of these

A. Auditing
B. Testing
C. Vouching
D. Verification

A. Small scale business
B. Partnership firms
C. Joint stock companies
D. Proprietary concerns

A. Embezzlement
B. Misappropriation
C. Lapping
D. None of these

A. Protect the interests of the minority shareholders
B. Detect and prevent errors and fraud
C. Assess the effectiveness of the company’s performance
D. Attest to the credibility of the company’s accounts

A. Are responsible for ensuring that the company complies with the law
B. Are responsible for ensuring that the company pays its tax by the due date
C. Safeguard the company’s assets and manage them on behalf of the shareholders
D. Report suspected fraud and money laundering to the authorities

A. Because they are easier to audit
B. Because it reduces the audit time
C. Because the risk to the accounts of their being incorrectly stated is greater
D. Because the directors have asked for it