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NEW QUESTION 23
Which of the following accounting methods is an investor organization likely to use when buying 40 percent of the stock of another organization?

A. Equity methodB. Fair value methodC. Consolidation methodD. Cost method

Answer: A

 

NEW QUESTION 24
Based on lest results an IT auditor concluded that the organization would suffer unacceptable toss of data if there was a disaster at its data center. Which of the following test results would likely lead the auditor to this conclusion?

A. Critical system backup tapes are taken off site less frequently than required.B. Returned backup tapes from the offsite vendor contained empty spacesC. Critical systems have been Backed up more frequently than required.D. Requested backup tapes were not returned from the offsite vendor in a timely manner

Answer: A

 

NEW QUESTION 25
Which of the following can be classified as debt investments?

A. Acquisition of common of a stock corporation.B. Acquisition of government bonds.C. Contents of an investment portfolio.D. Investments in the capital stock of a corporation.

Answer: B

 

NEW QUESTION 26
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. The purchasing department has more negotiating power than the selling department.B. There is no external market for that service.C. There is an external market for that service.D. The selling department operates at 50 percent of its capacity.

Answer: C

 

NEW QUESTION 27
An internal auditor is reviewing physical and environmental controls for an IT organization. Which control activity should not be part of this review?

A. Restrict access to tangible IT resources.B. Install and test fire detection and suppression equipment.C. Ensure that at least one developer has access to both systems and operations.D. Develop and test the organization's disaster recovery plan.

Answer: C

 

NEW QUESTION 28
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