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NEW QUESTION 22
Both users and management approve the initial proposal, design specifications, conversion plan, and testing plan of an information system. This is an example of:
Answer: D
Explanation:
Implementation controls occur in the systems development process at various points to ensure that implementation is properly controlled and managed.
NEW QUESTION 23
A company began work on a long-term construction contract in Year 1. The contract price was US $3,000,000. Year-end information related to the contract is as follows
If the company uses the percentage-of-completion method of accounting for this contract, the profit to be recognized in Year 1 is:
Answer: B
Explanation:
When the outcome of a contract can be reasonably estimated, the percentage-ofcompletion method for estimated recognizes revenue based on the stage of completion of the contract. One typical method for estimating the stage of completion is the calculation of ratio of the contract costs incurred to date to the estimated total cost. The percentage-ofcompletion at year-end on the cost-to-cost basis is 35%US $7150,1509. The profit for Year 1 is the anticipated profit on the contract times the completion percentage. Thus, profit for Year 1 is US $350,000 [($3,000,000 - $2,000,000) x 35%].
NEW QUESTION 24
Which of the following describes the most appropriate set of tests for auditing a workstation's logical access controls?
Answer: D
NEW QUESTION 25
If, in addition to the estimated profits, management of the bank assesses the probabilities of high, medium, and low demands to be 0.3, 0.4 and 0.3, respectively, what is the expected opportunity loss from selecting location L4?
Answer: A
Explanation:
First, the opportunity loss matrix must be prepared:
C:\Documents and Settings\usernwz1\Desktop\1.PNG The expected opportunity loss from selecting location L4 is thus US $5.50 [($3 x 0.3) + ($4
x 0.4) + ($10 x)
NEW QUESTION 26
An organization with global headquarters in the United States has subsidiaries in eight other nations. If the organization operates with an ethnocentric attitude, which of the following statements is true?
Answer: C
NEW QUESTION 27
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