Management Notes

Reference Notes for Management

In determining the level of materiality for an audit, what should not be considered?

In determining the level of materiality for an audit, what should not be considered?

In determining the level of materiality for an audit, what should not be considered?

 Options:

a) Prior year’s errors
b) The auditor’s remuneration
c) Adjusted interim financial statements
d) Prior year’s financial statements

The Correct Answer Is:

b) The auditor’s remuneration

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Which of the following is not a limitation of audit as per AAS-4?

Which of the following is not a limitation of audit as per AAS-4?

Which of the following is not a limitation of audit as per AAS-4?

 Options:

a) Objectivity of auditor’s judgment
b) Selective testing
c) Persuasiveness of evidence
d) Limitations of internal control system.

The Correct Answer Is:

a) Objectivity of auditor’s judgment

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A disability policyowner is injured and becomes totally disabled. The benefits pay for 2 years, starting from the date of the injury. What is this time period called?

A disability policyowner is injured and becomes totally disabled. The benefits pay for 2 years, starting from the date of the injury. What is this time period called?

A disability policyowner is injured and becomes totally disabled. The benefits pay for 2 years, starting from the date of the injury. What is this time period called?

 Options:

  1. Recurrent period
  2. Probationary period
  3. Benefit period
  4. Elimination period

The Correct Answer Is:

c. Benefit period

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The amount of coverage on a group credit life policy is limited to:

The amount of coverage on a group credit life policy is limited to:

The amount of coverage on a group credit life policy is limited to:

 Options:

a. half of the insured’s total loan value
b. the insured’s total loan value
c. 75% of the insured’s total loan value
d. $25,000

The Correct Answer Is:

b. the insured’s total loan value

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Buying goods and services for further processing or for use in the production process refers to which of the following markets?

Buying goods and services for further processing or for use in the production process refers to which of the following markets?

Buying goods and services for further processing or for use in the production process refers to which of the following markets?

 Options:

A. Consumer markets
B. Government markets
C. Business markets
D. International markets

The Correct Answer Is:

C. Business markets

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A social and managerial process by which individuals and organizations obtain what they need and want through value creation refers to which one of the following concepts?

A social and managerial process by which individuals and organizations obtain what they need and want through value creation refers to which one of the following concepts?

A social and managerial process by which individuals and organizations obtain what they need and want through value creation refers to which one of the following concepts?

 Options:

A. Selling
B. Advertising
C. Barter
D. Marketing

The Correct Answer Is:

D. Marketing

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A personal computer with features relating processor’s specifications the size of the hard disk and capacity of RAM is an example of

A personal computer with features relating processor's specifications the size of the hard disk and capacity of RAM is an example of

A personal computer with features relating processor’s specifications the size of the hard disk and capacity of RAM is an example of

 Options:

A. Explicit promise
B. Implicit promise
C. Positive promise
D. Negative promise

The Correct Answer Is:

A. Explicit promise

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_________ pricing is the approach of setting a low initial price in order to attract a large number of buyers quickly and win a large market share.

_________ pricing is the approach of setting a low initial price in order to attract a large number of buyers quickly and win a large market share.

_________ pricing is the approach of setting a low initial price in order to attract a large number of buyers quickly and win a large market share.

 Options:

A. Market-skimming
B. Value-based
C. Market-penetration
D. Leader

The Correct Answer Is:

D. Leader

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