Past Mcqs of Senior Auditor Test 2014

Past Mcqs of Senior Auditor test 2014 1)the meaning of the word procurement means..... 2)cost center means..... 3).......the risk ......the materiality,........the audit procedures. 4) capital Account is ......... in nature. 5)Formula of Machine working hours was asked. 6)PAAS stands for? 7)following are not the nominal accounts... a)cash,unearned revenue..... b)drawings,rent..... rest I cant remember 8)a question about the super tax was asked 9)another question was about the Master budget 10)Increase in the value of assets is called...? 7) Financial statements are prepared: 8) The basic purpose of an accounting system is to: 9) Information is cost effective when: 10) Although accounting information is used by a wide variety of external parties, financial reporting is primarily directed toward the information needs of: 11) All of the following are characteristics of managerial accounting, except: 12) In comparison with a financial statement prepared in conformity with generally accepted accounting principles, a managerial accounting report is more likely to: 13) The nature of an asset is best described as: 14) The amount of owner's equity in a business is not affected by: 15) Inventory is considered a current asset because it: 16) The primary economic function of a wholesaler is to: 17) The income statement of Laurel Company shows a large gross profit. This means that Laurel: 18) In a perpetual inventory system, purchases of merchandise on account are recorded by debiting: 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 properly, a year-end physical inventory: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? 22) The financial statement which shows cash activity (receipts and disbursements) during the accounting period is called a(n): 23) The principal purpose of a voucher system is to provide assurance that: 24) When a voucher system is in use, the finance department has access to each of the following except: 25) Which of the following is not disclosed in a bank reconciliation? 26) During preparation of a bank reconciliation, interest earned on the average bank balance during the month should be: 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? 29) For purposes of preparing a cash flow statement, which of the following is not considered a "cash equivalent"? 30) Warner Corporation reported net income in excess of its net cash flow from operations. A possible explanation of this difference is: 31) An important distinction between the direct method and the indirect method of preparing a statement of cash flows is that: 32) A corporation's free cash flow is its: 33) Which of the following is ordinarily computed and reported as part of the financial statements of a large corporation? 34) The basic purpose in preparing classified financial statements is to: 35) How would a company's current ratio be affected if a substantial amount of accounts payable were paid in cash? 36) Assume that net sales are increasing faster than the rate of inflation, and that the company's gross profit rate is falling. The most likely explanation is: 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: 38) Clay Corporation earns a rate of return on common stockholders' equity of 14%. Which of the following will cause the rate of return to increase? 39) If more units are produced than the "normal" level, and the overhead spending variance is favorable, then: 40) Which of the following unfavorable cost variances would be the least relevant in evaluating the performance of a production supervisor? 41) A difference between the overhead applied to work in process at a standard and the overhead budgeted for the level of output achieved: 42) SECP Stands for 43) IFRS Stands For 44) Opening and Ending Inventory 45) Auditor’s form no. 35A 46) The terms purchasing and procurement should not be seen as synonymous. As such, which of the following statements do you think has greatest validity? 47) Generally, which sequence is most typical of the procurement process? 48) E-procurement aims to improve performance of what is known as the 'five rights of purchasing'. One aim of e-procurement is increasing savings by sourcing items:

48) Another aim of e-procurement is increased choice of supplier leading to sourcing items: 49) Production related procurement refers to the purchasing of: 50) Negotiated contracts with regular suppliers typically in long-term relationships is an example of: