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?
Outstanding checks at year-end
22) The financial statement which shows cash activity (receipts and disbursements) during
the accounting period is called a(n):

Statement of cash flows

23) The principal purpose of a voucher system is to provide assurance that:
All cash disbursements are approved before a check is issued.
24) When a voucher system is in use, the finance department has access to each of the
following except:
Check register
25) Which of the following is not disclosed in a bank reconciliation?
Amount stolen by a salesclerk who did not ring up several cash sales
26) During preparation of a bank reconciliation, interest earned on the average bank
balance during the month should be:
Added to the cash balance per accounting records
27) A company which uses the direct write-off method recognizes uncollectible accounts
expense:
As specific accounts receivable are determined to be worthless
28) Which of the following transactions would increase the net cash flow from operating
activities?
The collection of an account receivable from a customer.
29) For purposes of preparing a cash flow statement, which of the following is not
considered a "cash equivalent"?
An investment in IBM bonds.

30) Warner Corporation reported net income in excess of its net cash flow from operations.
A possible explanation of this difference is:
)

Nonoperating gain

31) An important distinction between the direct method and the indirect method of
preparing a statement of cash flows is that:
The format of the section computing net cash flow from operating activities is
different under the two methods

32) A corporation's free cash flow is its:

B)
Cash flow from operating activities available after basic business
obligations have been met
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:
Manufacturing overhead will be overapplied.
40) Which of the following unfavorable cost variances would be the least relevant in
evaluating the performance of a production supervisor?
Labor efficiency (usage) variance.
41) A difference between the overhead applied to work in process at a standard and the
overhead budgeted for the level of output achieved:
Is called the overhead volume variance
42) SECP Stands for
43) IFRS Stands For
44) Opening and Ending Inventory
45) Auditors 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?
Procurement has a broader meaning than purchasing
47) Generally, which sequence is most typical of the procurement process?
Originator to approver to buyer to supplier
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:

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