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Senior Auditors Paper 2014docx PDF
Senior Auditors Paper 2014docx PDF
The action of obtaining or acquiring procuring something and the act of obtaining
2)cost center means..... cost centre is a department within a company that does not produce
The machine hour rate is similar to the labor hour rate method and is used where the work is
b)drawings,rent.....
incomes, etc. and it also includes pro forma financial statements. A budget is a plan of future
financial transactions. A master budget serves as planning and control tool to the management
since they can plan the business activities during the period based on master budget. At the end
of each period, actual results can be compared with the master budget and necessary control
The master budget is the aggregation of all lower-level budgets produced by a company's various
functional areas
D) In either monetary or nonmonetary terms, depending upon the need of the decision maker.
double-entry accounting.
B) The information is based upon historical costs, rather than upon estimated market values.
10) Although accounting information is used by a wide variety of external parties, financial
C) Customers.
A) Reports are used primarily by insiders rather than by persons outside of the business entity.
B) Focus upon the operation results of the most recently completed accounting period.
A) Something with physical form that is valued at cost in the accounting records.
C) An economic resource representing cash or the right to receive cash in the near future.
B is rite ans
A is rite ans
C) Will be converted into cash in the course of the company's operating cycle.
C is rite ans
A is rite ans
17) The income statement of Laurel Company shows a large gross profit. This means that Laurel:
A) Is profitable.
debiting:
B) Accounts Payable.
C) Purchases.
D) Inventory.
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
A) Is unnecessary.
B) Probably will indicate slightly less than $8,500 in merchandise on hand, because of inventory
shrinkage.
C) Probably will indicate slightly more than $8,500 in merchandise on hand, because of
inflation.
D) Is needed to establish the ending inventory, as the $8,500 balance in the Inventory account
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?
B is rite ans
22) The financial statement which shows cash activity (receipts and disbursements) during
A) Bank statement.
B) Income statement.
D) Bank reconciliation.
C is rite ans
B is rite ans
24) When a voucher system is in use, the finance department has access to each of the following
except:
B) Signed check.
D) Check register.
D is rite ans
A) Error made by the depositor in recording the amount of a check received from a customer.
D) Amount stolen by a salesclerk who did not ring up several cash sales.
D is rite ans
26) During preparation of a bank reconciliation, interest earned on the average bank balance
B is rite ans
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?
B is rite ans
29) For purposes of preparing a cash flow statement, which of the following is not considered a
"cash equivalent"?
C) Treasury bills.
D) Commercial paper.
B is rite ans
30) Warner Corporation reported net income in excess of its net cash flow from operations. A
A) Depreciation expense.
B) Nonoperating gains.
31) An important distinction between the direct method and the indirect method of preparing a
A) The direct method reconciles accrual-based net income with net cash flow from operations;
the indirect method shows the specific cash inflows and outflows constituting the operating
activities.
B) The direct method results in a lower (more conservative) figure for net cash flow from
C) Only those statements of cash flows prepared using the direct method are in accordance with
D) The format of the section computing net cash flow from operating activities is different under
D is rite ans
A) Cash flow from operating activities that is not subject to income taxes.
B) Cash flow from operating activities available after basic business obligations have been met.
D) Cash flow from operating activities less all cash payments for investing and financing
activities.
B is rite ans
33) Which of the following is ordinarily computed and reported as part of the financial
D is rite ans
B) Develop useful subtotals which will assist users of the statements in their analysis of the
C) Create a balance sheet which measures the profitability of the business as well as its financial
position.
D) Determine that the amounts shown in the financial statements are in agreement with the
35) How would a company's current ratio be affected if a substantial amount of accounts payable
A) It would be unaffected since the transaction reduces the numerator and denominator by the
same amount.
B) It would fall.
C) It would increase.
D) The change would depend on the relationship between the payables liquidated and current
liabilities.
C is rite ans
36) Assume that net sales are increasing faster than the rate of inflation, and that the company's
D) The company has achieved an increase in sales volume by reducing its sales prices.
D is rite ans
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:
C) DB's net sales are increasing faster than the rate of inflation.
B is rite ans
38) Clay Corporation earns a rate of return on common stockholders' equity of 14%. Which of
A is rite ans
39) If more units are produced than the "normal" level, and the overhead spending variance is
favorable, then:
C is rite ans
40) Which of the following unfavorable cost variances would be the least relevant in evaluating
A) Will not occur because the amount of overhead budgeted is used to determine the amount of
overhead applied.
B is rite ans
1) The terms purchasing and procurement should not be seen as synonymous. As such, which of
Ans 2
2) Generally, which sequence is most typical of the procurement process?
Ans 1
Ans 2
5) Production related procurement refers to the purchasing of:
Information systems
2 Office supplies
3 Furniture
4 Raw material
of:
1 MRO sourcing
2 E-procurement
3 Systematic sourcing
4 Spot sourcing
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