Repeatedly Missed MC/Concepts

Question 1

In foreign currency fluctuation questions, when the rate changes, to find out what the investment is worth, how do you figure this out?

Answer 1

Take the investment DIVIDED by the new rate (SEE MC in cumulative test #2, #9)

Question 2

Which component in COSO addresses an entity’s financial reporting objectives?

Answer 2

RISK ASSESSMENT (SAFR)
S = Specify objectives
A = identify and ASSESS changes
F = consider potential for FRAUD
R = identify and analyze RISKS

Question 3

In the expenditures process, what are the documents used for the 3-way match?

Answer 3

1.) PO
2.) Invoice
3.) Receiving report

PIR

Question 4

According to COSO, which is included in the “assess-and-report” phase of an effective approach to monitoring internal controls?

Answer 4

Prioritize findings

Question 5

What is NOT a step found in the manufacturing process?

Answer 5

Purchase raw materials

Question 6

What is a working capital technique that increases the payable float and delays the outflow of cash?

Answer 6

Draft