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The main reason to establish internal controls in an organization is to:
The main reason to establish internal controls in an organization is to:A . Encourage compliance with policies and procedures.B . Safeguard the resources of the organization.C . Ensure the accuracy, reliability, and timeliness of information.D . Provide reasonable assurance on the achievement of objectives.View AnswerAnswer: D
What is the closing inventory if the periodic inventory system is used?
During the last year, an organization had an opening inventory of $300,000, purchases of $980,000, sales of $1,850,000, and a gross margin of 40 percent. What is the closing inventory if the periodic inventory system is used?A . $170,000B . $280,000C . $300,000D . $540,000View AnswerAnswer: A
Which audit approach should be employed to test the accuracy of information housed in a database on an un-networked computer?
Which audit approach should be employed to test the accuracy of information housed in a database on an un-networked computer?A . Submit batches of test transactions through the current system and verify with expected results.B . Use a test program to simulate the normal data entering process.C . Select a...
Which of the following performance measures would be appropriate for evaluating an investment center, which has responsibility for its revenues, costs, and investment base, but would not be appropriate for evaluating cost, revenue, or profit centers?
Which of the following performance measures would be appropriate for evaluating an investment center, which has responsibility for its revenues, costs, and investment base, but would not be appropriate for evaluating cost, revenue, or profit centers?A . A flexible budget.B . Variance analysis.C . A contribution margin income statement by...
Which of the following is a disadvantage of selecting a commercial software package rather than developing an application internally?
Which of the following is a disadvantage of selecting a commercial software package rather than developing an application internally?A . Lack of flexibility.B . Incompatibility with client/server technology.C . Employee resistance to change.D . Inadequate technical support.View AnswerAnswer: A
Cost focus.
Cost focus.A . 2 onlyB . 3 and 4 onlyC . 1, 3, and 4 onlyD . 1, 2, 3, and 4View AnswerAnswer: C
The economic order quantity for inventory is higher for an organization that has:
The economic order quantity for inventory is higher for an organization that has:A . Lower annual unit sales.B . Higher fixed inventory ordering costs.C . Higher annual carrying costs as a percentage of inventory value.D . A higher purchase price per unit of inventory.View AnswerAnswer: B
Which of the following is a product-oriented definition of a business rather than a market-oriented definition of a business?
Which of the following is a product-oriented definition of a business rather than a market-oriented definition of a business?A . We are a people-and-goods mover.B . We supply energy.C . We make movies.D . We provide climate control in the home.View AnswerAnswer: C
The first step in determining product price is:
The first step in determining product price is:A . Determining the cost of the product.B . Developing pricing objectives.C . Evaluating prices set by the competitors.D . Selecting a pricing method.View AnswerAnswer: B
Which of the following does not represent a recognized cultural dimension in a work environment?
When initiating international ventures, an organization should consider cultural dimensions in order to prevent misunderstandings. Which of the following does not represent a recognized cultural dimension in a work environment?A . Self control.B . Power distance.C . Masculinity versus femininity.D . Uncertainty avoidance.View AnswerAnswer: A
