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IIA Business Knowledge for Internal Auditing Sample Questions (Q266-Q271):

NEW QUESTION # 266
An entity sells to retail stores on credit terms of 2/10 net 30. Daily sales average 150 units at a price of US $300 each. Assuming that all sales are on credit and 60% of customers take the discount and pay on day 10 while the rest of the customers pay on day 30, what is the amount of the entity's accounts receivable?

A. US $900,000
B. US $990,000
C. US $81,000
D. US $135,000

Answer: C

Explanation:
The entity has daily sales of US $45,000 consisting of 150 units at US $300 each. For 30 days, sales total US $1.350.000. Forty percent of these sales. or US $540,000, will be uncollected because customers do not take their discounts. The remaining 60%. or US $810,000. will be paid within the discount pen 1. However, by the end of 30 days. only 213 of the US $810,000 will be collected because the sales from days 21 through 30 are still within the discount period. Therefore, an additional US $270,000 $810,000 - $5...I0, Ori0) will still be uncollected after the 30th day, but will be subject to a discount. In total, the average retail balance is US $810,000. consisting of US $540,000 on which no discount will be taken and US '1.270.000 that will be paid within the discount period.

NEW QUESTION # 267
An organization produces two products, X and Y.
The materials used for the production of both products are limited to 500 kilograms (kg) per month. All other resources are unlimited and their costs are fixed. Individual product details are as follows:
Product X Product Y
Selling price per unit $10 $13
Materials per unit (at $1/kg) 2 kg 6 kg
Monthly demand 100 units 120 units
In order to maximize profit, how much of product Y should the organization produce each month?

A. 60 units.
B. 100 units.
C. 120 units.
D. 50 units.

Answer: D

NEW QUESTION # 268
The leadership of an organization encourages employees to form voluntary problem-solving groups whereby several employees from the same work area meet regularity during work hours to discuss improvements and creative ways to reduce costs. Which of the following best describes this approach?

A. Quality control circles
B. Open-book management
C. Self-managed teams
D. Cross-functional teams

Answer: C

NEW QUESTION # 269
Under the balanced scorecard concept, employee satisfaction and retention are measures used under which of the following perspectives?

A. Internal business.
B. Customer.
C. Learning and growth.
D. Financial.

Answer: C

Explanation:
The balanced scorecard is an accounting report that connects the firm's critical success factors CSFs) determined in a strategic analysis to measures of its performance. CSFs are financial and nonfinancial measures. For the learning, growth, and innovation perspective, the CSFs may be development of new products, promptness of their introduction, human resource development, morale, and competence of the workforce. Measures of employee satisfaction, retention, and competence may include RD personnel qualifications, hours of training, skill set levels attained, personnel turnover, and personnel complaints and survey results.

NEW QUESTION # 270
Which of the following best describes a man-in-the-middle cyber-attack?

A. The perpetrator is able to take over control of data communication in transit and replace traffic.
B. The perpetrator is able to disable default security controls and introduce additional vulnerabilities
C. The perpetrator is able to delete data on the network without physical access to the device.
D. The perpetrator is able to exploit network activities for unapproved purposes.

Answer: A

NEW QUESTION # 271
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