Junior Auditor Paper held on 08-07-2023

If quantity demanded for a good rises 20% when income rise 2%, then the good is a(n):

A. Necessity

B. Luxury good

C. Inferior good

D. Inelastic good

Ex ante evaluation is:

A. evaluation of project after its implementation.

B. evaluation of project during its implementation.

C. evaluation of project prior to its implementation

D. evaluation of project after its completion.

The ratios appropriate for the evaluation of accounts receivable are:

A. Return on total assets

B. Collection to debt ratio

C. Days sales outstanding

D. Current ratio

Non-random variable is also called:

A. Regressand

B. Predictor

C. Response variable

D. Explained variable

Analyzing the business environment best assists in:

A. Identifying key competitive forces; identifying competitive position; identifying key opportunities, threats, strengths and weaknesses.

B. Auditing micro environmental influences; identifying key non competitive forces; identifying competitive position; identifying key opportunities and threats.

C. Auditing external and organizational factors; identifying key competitive forces; identifying competitive position; identifying key opportunities and threats.

D. Assessing historical trends; auditing environmental dangers; identifying strategic capabilities; identifying competitive position.

Goodwill is most appropriately classed as:

A. A current asset

B. An intangible asset

C. A fictitious liability

D. Owner’s capital

What are the key drivers of growth of South Asia’s development?

A. market integration

B. infrastructure

C. institutions

D. inclusive growth

E. all of the above

Business risk involves all of the following factors except:

A. The more stable the demand for a firm’s products, the lower its business risk

B. Firms whose input costs are highly uncertain are exposed to a low degree of business risk

C. The faster a firm’s products become antiquated, the greater a firm’s business risk

D. The greater the ability to adjust output prices reflect cost conditions, the lower the degree of business risk.