MCQsLoader

Deferred cost is a/an:

(A) Liability
(B) Expense
(C) Asset
(D) None of above

Answer: (C) Asset
Deferred cost is an asset.

(A) plant and machinery
(B) leasehold property
(C) freehold land
(D) none of these

Answer: (B) leasehold property
Leasehold property is an asset that is least likely to be subjected to lien.

(A) credit purchase
(B) credit sale
(C) purchase return
(D) sale return

Answer: (A) credit purchase
An auditor is most likely to examine the related party transaction very carefully while vouching credit purchase.

(A) Turkey
(B) Saudi Arabia
(C) Egypt
(D) America

Answer: (A) Turkey
The ancient city “Tarsus” is in Turkey.

(A) Average propensity to save
(B) Average propensity to consume
(C) Marginal propensity to consume
(D) Marginal propensity to save

Answer: (B) Average propensity to consume
The ratio between total consumption and total income is known as average propensity to consume.