Day 37

Question 1

What is a common document found in the expenditure process?

Answer 1

Voucher - is a document containing a Purchase Order, Receiving Report, and a Supplier Invoice to verify that the invoice matches what was ordered and received

MCQ-15050

Question 2

A Pick Ticket is apart of what cycle/process?

Answer 2

Revenue process

MCQ-15050

Question 3

What economic term describes a general decline in prices for goods and services?

Answer 3

Deflation

MCQ-06622

Question 4

In a competitive market, an equal increase in both demand and supply will result in:

Answer 4

Increase market-clearing quantity

Supply and Demand curves shift outward

MCQ-03983

Question 5

According to SOX Title VIII, what is the penalty for altering, destroying, covering up documents?

Answer 5

Fingers and up to 20 years of jail

MCQ-09000

Question 6

What is a common document found in the revenue process?

Answer 6

Packing Slip

MCQ-15051

Question 7

According to COSO, establishing, maintaining, and monitoring effective internal controls will help the company do what?

Answer 7

1. Help achieve performance goals
2. Promote Entity’s compliance with laws and regulations
3. Provide protection for Entity’s resources

Note: WILL NOT ensure financial survival

MCQ-12440

Question 8

According to COSO, the primary purpose of monitoring effective internal controls is to address:

Answer 8

Changes in Risk

Risks are fluid and change in severity

MCQ-05158

Question 9

The use of an Integrated Framework to establish a system of internal controls provides value to external stakeholders by:

Answer 9

1. Confidence that the board is effectively overseeing internal controls
2. A stronger understanding of an effective internal control system
3. Confidence that MGMT will eliminate inefficient controls

Note: DOES NOT provide ASSURANCE that controls cannot be circumvented or overridden

MCQ-00490

Question 10

A Pick Ticket is commonly found in what business process?

Answer 10

Revenue process

MCQ-14566

Question 11

Organization’s with one-piece flow manufacturing that experience bottlenecks in production are most likely to develop strategies associated with:

Answer 11

Theory of Constraints - says that organization’s are impeded from achieving objectives by the existence of one or more constraints

Organization’s must be operated in a manner that either works around or leverages the constraint

MCQ-06495

Question 12

Performance and quality assurance occurs in which process?

Answer 12

In the Implementation process, after the Standard of Quality has been defined

MCQ-06488

Question 13

What is a benefit of using electronic funds transfer for international cash transactions?

Answer 13

Reduce the frequency of data entry errors

Note: EFT transactions reduce the audit paper trail

MCQ-03682

Question 14

Under pure competition, strategic plans focus on:

Answer 14

Maintaining Market Share and being responsive to market conditions related to sales price

MCQ-03479

Question 15

Electronic commerce (like Amazon) is what type of e-commerce?

Answer 15

Business to Consumer

MCQ-14581

Question 16

The existence of a published code of ethics (Employee Handbook) and periodic acknowledgement that ethical values are understood is evidence of what?

Answer 16

• Sound integrity and ethical values are developed and understood
• Set the standard of conduct for financial reporting

MCQ-06769

Question 17

Define and provide examples: Decision Support System (DSS)

Answer 17

A computer based information system that provide interactive support to managers during the decision making process. These “expert” systems help model different scenarios or a combination of possible outcomes.

1. Database Query Application - read and reorganize data
2. Sensitivity Analysis Application - “what if” technique that asks how a given outcome will change if the original estimates change
3. Financial Modeling Application

MCQ-14664