Question 1

Which of the following are the most appropriate measures for evaluating the change in an organization's liquidity position?

Options :

A : Times interest earned, return on assets, and inventory turnover.

B : Accounts receivable turnover, inventory turnover in days, and the current ratio.

C : Accounts receivable turnover, return on assets, and the current ratio.

D : Inventory turnover in days, the current ratio, and return on equity.

Answer: B

Question 2

Which of the following management statements illustrates how natural bias can lead to poor decision making?

Options :

A : "Although we previously agreed that we would launch a new product this year, we changed our minds and decided to terminate the launch."

B : "Due to the crisis that arose last week, we are not prepared to provide the board with an estimate of next year-s revenue."

C : "We will continue manufacturing the same products in the same way that we always have, because this tradition has made our organization successful."

D : "We decided to postpone expanding into the new market because of high uncertainty at this time."

Answer: C

Question 3

Which of the following describes the result if an organization records merchandise as a purchase, but fails to include it in the closing inventory count?

Options :

A : The cost of goods sold for the period will be understated.

B : The cost of goods sold for the period will be overstated.

C : The net income for the period will be understated.

D : There will be no effect on the cost of goods sold or the net income for the period.

Answer: B

Question 4

According to IIA guidance, which of the following is an IT project success factor?

Options :

A : Streamlined decision-making, rather than building consensus among users.

B : Consideration of the facts, rather than consideration of the emotions displayed by project stakeholders.

C : Focus on flexibility and adaptability, rather than use of a formal methodology.

D : Inclusion of critical features, rather than inclusion of an array of supplementary features.

Answer: D

Question 5

An organization created a formalized plan for a large project. Which of the following should be the first step in the project management plan?

Options :

A : Estimate time required to complete the whole project

B : Determine the responses to expected project risks

C : Break the project into manageable components

D : Identify resources needed to complete the project

Answer: C

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