past mcqs of senior auditor test 2014

7/26/2019 Past Mcqs of Senior Auditor Test 2014

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Past Mcqs of Senior Auditor test 20141)the meaning of the word procurement means.....2)cost center means.....3).......the risk ......the materia it!"........the audit procedures.4) capita Account is ......... in nature.

#)$ormu a of Machine working hours was asked.%)PAAS stands for&')fo owing are not the nomina accounts...a)cash"unearned re(enue.....)drawings"rent.....rest * cant remem er+)a question a out the super ta, was asked-)another question was a out the Master udget10)*ncrease in the (a ue of assets is ca ed...&') $inancia statements are prepared+) /he asic purpose of an accounting s!stem is to-) *nformation is cost effecti(e when

10) A though accounting information is used ! a wide (ariet! of e,terna parties" financiareporting is primari ! directed toward the information needs of

11) A of the fo owing are characteristics of manageria accounting" e,cept

12) *n comparison with a financia statement prepared in conformit! with genera !accepted accounting princip es" a manageria accounting report is more ike ! to

13) /he nature of an asset is est descri ed as

14) /he amount of owner s equit! in a usiness is not affected !

1#) *n(entor! is considered a current asset ecause it1%) /he primar! economic function of a who esa er is to

1') /he income statement of aure ompan! shows a arge gross profit. /his means thataure

1+) *n a perpetua in(entor! s!stem" purchases of merchandise on account are recorded !de iting

1-) o ! s enera Store uses a periodic in(entor! s!stem. At !ear end" the a ance in the*n(entor! account is 5+"#00. Assuming that the in(entor! records ha(e een maintainedproper !" a !ear end ph!sica in(entor! 20) 6ard ompan! disco(ered that merchandisepurchased on account was defecti(e and returned this merchandise to the supp ier. /heentr! to record this return wi reduce 6ard s21) 6hich of the fo owing shou d not e inc uded as part of cash on the a ance sheet&

7utstanding checks at !ear end

22) /he financia statement which shows cash acti(it! 8receipts and dis ursements) duringthe accounting period is ca ed a8n)


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Statement of cash f ows

23) /he principa purpose of a (oucher s!stem is to pro(ide assurance that

A cash dis ursements are appro(ed efore a check is issued.

24) 6hen a (oucher s!stem is in use" the finance department has access to each of thefo owing e,cept

heck register

2#) 6hich of the fo owing is not disc osed in a ank reconci iation&

Amount sto en ! a sa esc erk who did not ring up se(era cash sa es

2%) 9uring preparation of a ank reconci iation" interest earned on the a(erage ank

a ance during the month shou d eAdded to the cash a ance per accounting records

2') A compan! which uses the direct write off method recogni:es unco ecti e accountse,pense

As specific accounts recei(a e are determined to e worth ess

2+) 6hich of the fo owing transactions wou d increase the net cash f ow from operatingacti(ities&

/he co ection of an account recei(a e from a customer.

2-) $or purposes of preparing a cash f ow statement" which of the fo owing is notconsidered a ;cash equi(a ent;&

An in(estment in *


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32) A corporation s free cash f ow is its

ow wou d a compan! s current ratio e affected if a su stantia amount of accountspa!a e were paid in cash&3%) Assume that net sa es are increasing faster than the rate of inf ation" and that thecompan! s gross profit rate is fa ing. /he most ike ! e,p anation is

3') Assume that for se(era !ears" the net income of 9e ta


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purchasing . 7ne aim of e procurement is increasing sa(ings ! sourcing items

At the right price

4+) Another aim of e procurement is increased choice of supp ier eading to sourcing

items$rom the right source

4-) Production re ated procurement refers to the purchasing of

aw materia s

#0) =egotiated contracts with regu ar supp iers t!pica ! in ong term re ationships is ane,amp e ofSystematic sourcing

past mcqs of senior auditor test 2014

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