Accounting Multiple Choice Question – 9 June 2026

For the following statement below, select whether it is of no relevance, depending on the size of the client, true or false in respect of the procedures to obtain evidence.

• Physical examination of property, plant and equipment confirms ownership.

Select ONE answer:

1. True
2. False
3. Of no relevance
4. Depending on the size of the client

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 2

1. Not correct
2. Correct – Physical examination of property, plant and equipment confirms its existence, which may belong to a third party. The reliability of the inquiry depends on who is providing the information. A third party, e.g., a bank, would normally be a reliable source.
3. Not correct
4. Not correct

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