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NEW QUESTION 31
Suppose that an entity has paid one of its liabilities t ice during the year in error The effects of this mistake would be?

• A. Assets Liabilities, and equity are understated.
• B. Assets and liabilities are understated.
• C. Assets and profit and equity} are understated, and liabilities are overstated.
• D. Assets, net income, and equity are unaffected

Answer: B

Explanation:
When a liability is paid, an entry debiting accounts payable and crediting cash is made. If an entity erroneously pays a liability twice, the accounts payable and cash accounts will be understated by the amount of the liability. Hence, assets and liabilities will be understated.

NEW QUESTION 32
Which of the following focuses on finding statistical relationships in order to create profiles?

• A. Process analysis.
• B. Data analysis.
• C. Process mining.
• D. Data mining.

Answer: B

Explanation:
Explanation/Reference: https://www.researchgate.net/profile/Mohamed_Hammad11/post/ What_instrument_is_used_to_analyze_qualitative_descriptive_data/attachment/59d659ca79197b80779af218/ AS%3A543750520664064%401506651634578/download/CHAPTER+6-+DATA+ANALYSIS+AND
+INTERPRETATION.pdf

NEW QUESTION 33
Which of the following statements is true regarding the management-by-objectives method?

• A. Management by objectives is most helpful in mechanistic organizations with rigidly defined tasks.
• B. Management by objectives helps organizations to distinguish clearly strategic goals from operational goals.
• C. Management by objectives is most helpful in organizations that have rapid changes.
• D. Management by objectives helps organizations to keep employees motivated.

Answer: D

NEW QUESTION 34
Residual income is often preferred over return on investment ROI as a performance evaluation because

• A. Average investment is employed with residual income while year-end investment is employed with ROI.
• B. Residual income is a measure over time while ROI represents the results for a single time period.
• C. The imputed interest rate used in calculating residual income is more easily derived than the target rate that is compared to the calculated ROI.
• D. Residual income concentrates on maximizing absolute amounts of income rather than a percentage return as with ROI.

Answer: D

Explanation:
Residual income concentrates on earnings in excess of the minimum desired return. With ROI, a segment may reject a project that exceeds Beds the minimum return if the project will decrease the segment's overall ROI. For example, a project that earns an ROI of 22%, which is greater than the target rate of 20%, might be rejected if the segment is currently earning 25%. because the project will decrease the segments ROI. This would not occur if performance was measured using residual income.

NEW QUESTION 35
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