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Senior Auditor 2014
Senior Auditor 2014
a)cash,unearned revenue.....
b)drawings,rent.....
10) Although accounting information is used by a wide variety of external parties, financial
17) The income statement of Laurel Company shows a large gross profit. This means that
Laurel:
debiting:
19) Colby's General Store uses a periodic inventory system. At year-end, the balance in the
Inventory account is $8,500. Assuming that the inventory records have been maintained
20) Ward Company discovered that merchandise purchased on account was defective and
returned this merchandise to the supplier. The entry to record this return will reduce
Ward's:
21) Which of the following should not be included as part of cash on the balance sheet?
22) The financial statement which shows cash activity (receipts and disbursements) during
24) When a voucher system is in use, the finance department has access to each of the
following except:
26) During preparation of a bank reconciliation, interest earned on the average bank
27) A company which uses the direct write-off method recognizes uncollectible accounts
expense:
28) Which of the following transactions would increase the net cash flow from
operating activities?
29) For purposes of preparing a cash flow statement, which of the following is not
30) Warner Corporation reported net income in excess of its net cash flow from operations.
31) An important distinction between the direct method and the indirect method of
33) Which of the following is ordinarily computed and reported as part of the financial
35) How would a company's current ratio be affected if a substantial amount of accounts
36) Assume that net sales are increasing faster than the rate of inflation, and that the
company's gross profit rate is falling. The most likely explanation is:
37) Assume that for several years, the net income of Delta-Baines (DB) has been rising as a
percentage of the company's net sales. Analysts normally would interpret this to mean that:
38) Clay Corporation earns a rate of return on common stockholders' equity of 14%. Which
39) If more units are produced than the "normal" level, and the overhead spending variance
is favorable, then:
40) Which of the following unfavorable cost variances would be the least relevant in
41) A difference between the overhead applied to work in process at a standard and the
1) The terms purchasing and procurement should not be seen as synonymous. As such,
example of:
That's not the butcher you brought the meat, you must have gone_______.
Options 1. The wrong one 2. Some wrong one 3. Wrong 4. Wrong one