Presented below are partial year-end financial statement data (000 omitted from dollar amounts) for companies A and B:
If company A has a quick ratio of 2:1, then it has an accounts receivable balance of:
A. $100
B. $200
C. $300
D. $500
A retail organization is considering acquiring a composite textile company. The retailer's due diligence team determined the value of the textile company to be $50 million. The financial experts forecasted net present value of future cash flows to be $60 million. Experts at the textile company determined their company's market value to be $55 million if purchased by another entity. However, the textile company could earn more than $70 million from the retail organization due to synergies. Therefore, the textile company is motivated to make the negotiation successful. Which of the following approaches is most likely to result in a successful negotiation?
A. Develop a bargaining zone that lies between $50 million and $70 million and create sets of outcomes between $50 million and $70 million.
B. Adopt an added-value negotiating strategy, develop a bargaining zone between $50 million and $70 million, and create sets of outcomes between $50 million and $70 million.
C. Involve a mediator as a neutral party who can work with the textile company's management to determine a bargaining zone.
D. Develop a bargaining zone that lies between $55 million and $60 million and create sets of outcomes between $55 million and $60 million.
The economic order quantity for inventory is higher for an organization that has:
A. Lower annual unit sales.
B. Higher fixed inventory ordering costs.
C. Higher annual carrying costs as a percentage of inventory value.
D. A higher purchase price per unit of inventory.
The market price is the most appropriate transfer price to be charged by one department to another in the same organization for a service provided when:
A. There is an external market for that service.
B. The selling department operates at 50 percent of its capacity.
C. The purchasing department has more negotiating power than the selling department.
D. There is no external market for that service.
Which of the following statements are true regarding the use of heat maps as risk assessment tools?
1.
They focus primarily on known risks, limiting the ability to identify new risks.
2.
They rely heavily on objective assessments and related risk tolerances.
3.
They are too complex to provide an easily understandable view of key risks.
4.
They are helpful but limited in value in a rapidly changing environment.
A. 1 and 2 only
B. 1 and 4 only
C. 2 and 3 only
D. 3 and 4 only
Which of the following would best prevent unauthorized external changes to an organization's data?
A. Antivirus software, firewall, data encryption.
B. Firewall, data encryption, backup procedures.
C. Antivirus software, firewall, backup procedures.
D. Antivirus software, data encryption, change logs.
An organization uses a database management system (DBMS) as a repository for data. The DBMS, in turn, supports a number of end-user developed applications which were created using fourth-generation programming languages. Some of the applications update the database. Which of the following is the most important control related to the integrity of the data in the database?
A. End users have their read-only applications approved by the information systems department before accessing the database.
B. Concurrency update controls are in place.
C. End-user applications are developed on personal computers before being implemented on the mainframe.
D. A hierarchical database model is adopted so that multiple users can be served at the same time.
According to IIA guidance, which of the following statements is true regarding analytical procedures?
A. Data relationships are assumed to exist and to continue where no known conflicting conditions exist.
B. Analytical procedures are intended primarily to ensure the accuracy of the information being examined.
C. Data relationships cannot include comparisons between operational and statistical data
D. Analytical procedures can be used to identify unexpected differences but cannot be used to identify the absence of differences
As it relates to the data analytics process, which of the following best describes the purpose of an internal auditor who cleaned and normalized data?
A. The auditor eliminated duplicate information.
B. The auditor organized data to minimize useless information.
C. The auditor made data usable for a specific purpose by ensuring that anomalies were identified and corrected.
D. The auditor ensured data fields were consistent and that data could be used for a specific purpose.
Which of the following actions would senior management need to consider as pan of new IT guidelines regarding the organization's cybersecurity policies?
A. Assigning new roles and responsibilities for senior IT management.
B. Growing use of bring your own devices tor organizational matters
C. Expansion of operations into new markets with united IT access
D. Hiring new personnel within the IT department tor security purposes
