- This topic has 75 replies, 74 voices, and was last updated 9 years, 3 months ago by
.
-
Topic
-
– The NINJAs are giving away a NINJA MCQ section of the winner’s choice.
– To enter the drawing, simply post an answer to each question (you don’t have to get them correct to be picked).
– Three (3) winners will be randomly selected from this thread
– You can gift your winning section to someone else (i.e. people who already passed can participate)
– Deadline to answer/enter: Friday – 4pm Eastern
Update: This drawing is closed.
1. The following information pertains to Quest Co.’s Gold Division:
Sales $311,000
Variable cost 250,000
Traceable fixed costs 50,000
Average invested capital 40,000
Imputed interest rate 10%
Quest’s return on investment was:
A. 10.00%.
B. 13.33%.
C. 27.50%.
D. 30.00%.
Answer: C
Division net income equals $311,000 sales less variable costs of $250,000 and traceable fixed costs of $50,000, or $11,000.
Return on investment is net income ($11,000) divided by investment ($40,000), or 27.5%.
2. How many levels of interdependence are included in integrated planning?
A. Three levels
B. One level
C. Five levels
D. Ten levels
Answer: A
There are three levels of interdependence in integrated planning:
1. Pooled
2. Sequential
3. Reciprocal
3. You walk into a little boutique in the nearby mall. As you walk up to the cash register with an item that you wish to purchase, you notice that there appears to be only one employee in this small store. With a limited number of personnel in the store at any given time, what would be the best internal control procedure to provide a reasonable guarantee that all cash sales are being rung up properly and cash put in the cash drawer?
A. Carefully screen all new employees
B. Require that all sales be rung up on the cash register using barcodes
C. Increase the minimum number of employees at the store at any given time to three
D. Post a sign in a visible spot near the checkout counter that states, “If you do not get a receipt, your purchase is free.”
Answer: D
Internal controls are designed to provide reasonable assurance that objectives are achieved and compliance to laws and regulations is obtained. All of the items listed would be reasonable control procedures; however, the store receipts may not be able to support a minimum of three employees at the store at any given time. The cost of an internal control procedure is not expected to exceed its benefit. Although it would be important to carefully screen all new employees, it is often difficult to judge an individual’s character during one or two short interviews, and in today’s litigious society, it is often difficult to get valuable information from prior employees or other references.
Following are some of the internal control goals related to this transaction:
Validity: The owner would want only valid, authorized, and legal transactions to be processed. By requiring all transactions to be rung up on the cash register, the owner has the ability to review all transactions. The owner could examine items sold, discounts given, and any other adjustments recorded in sales. However, when only one employee is in the store, it would be difficult to enforce the use of the cash register for cash sales.
Accuracy of recording and evidence of supportability: The owner would want transactions to be recorded free of omissions. By using the customer as a part of the internal control process, the customer can be a “monitor” of the transaction when the owner is not in the store and/or when only one employee is on the selling floor. The transaction would need to be entered into the cash register (recorded) in order to print a register receipt. Given that it may be necessary to have only one employee in the store at slower times during the day, the owner has a final “backup” to have reasonable assurance that the employees are using the other required internal control procedures—thus making this procedure key in the internal control process.
AUD - 79
BEC - 80
FAR - 76
REG - 92
- The topic ‘Test Your Might: BEC (NINJA MCQ Giveaway x3)’ is closed to new replies.
