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NEW QUESTION 24
Which of me following represents an inventory costing technique that can be manipulated by management to boost net income by selling units purchased at a low cost?
- A. First-in first-out method (FIFO)
- B. Last-in first-out method (LIFO)
- C. Average-cost method
- D. Specific identification method
Answer: A
NEW QUESTION 25
Within an enterprise, IT governance relates to the:
1. Alignment between the enterprise's IT long term plan and the organization's objectives.
2. Organizational structures of the company that are designed to ensure that IT supports the organization's strategies and objectives.
3. Operational plans established to support the IT strategies and objectives.
4. Role of the company's leadership in ensuring IT supports the organization's strategies and objectives.
- A. 3 and 4 only
- B. 1 and 2 only
- C. 2, 3, and 4 only
- D. 1, 2, and 4 only
Answer: D
Explanation:
Explanation/Reference:
NEW QUESTION 26
An entity has daily cash receipts of US $100,000 and collection time of 2 days. A bank has offered to reduce the collection time on the entity's deposits by 2 days for a monthly fee of US $500. If money market rates are expected to average 6% during the year, the net annual benefit loss) from having this service is:
- A. US $3,000
- B. US $6,000
- C. US $0
- D. US $12,000
Answer: B
Explanation:
If collection time is 2 days, and average daily receipts are US $ 100,000, the average cash balance will increase by I. $200,000 if the bank's system is adopted At a 6% interest rate, US $200,000 will generate US $12,000 of interest revenue annually. The US $500 monthly charge by the bank will result in an annual expense of US $6,000. Thus, the net annual benefit is US $6,000 $12,000 - 6,000).
NEW QUESTION 27
According to lIA guidance on IT, which of the following plans would pair the identification of critical business processes with recovery time objectives?
- A. The business continuity risk assessment plan.
- B. The business Impact analysis plan
- C. The business continuity management charter.
- D. The business case for business continuity planning
Answer: B
NEW QUESTION 28
An internal auditor was asked to review an equal equity partnership, in one sampled transaction. Partner A transferred equipment into the partnership with a Self-declared value of 510 ,000, and Partner B contributed equipment with a self-declared value of 515,000. The capital accounts reach partner were subsequently credited with $12,500. Which of the following statements Is true regarding this transection?
- A. No action is needed, as the capital account of each partner was increased by the correct amount,
- B. The capital accounts of the partners should be increased by she original cost of the contributed equipment.
- C. The capital accounts should be increased using a weighted average based by the current percentage of ownership.
- D. The capital accounts of the partners should be increased by She fair market value of their contribution.
Answer: A
NEW QUESTION 29
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