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NEW QUESTION # 26

Operational management in the IT department has introduced performance evaluation policies that are linked to employees achieving continuing education hours. This activity is designed to prevent which of the following conditions?

  • A. Communication failure.
  • B. Monitoring gap
  • C. Knowledge/skills gap
  • D. Accountability/reward failure.

Answer: C



NEW QUESTION # 27

If a bank's activities are categorized under such departments as community banking, institutional banking, and agricultural banking, what kind of departmentalization is being utilized?

  • A. Functional departmentalization.
  • B. Process departmentalization.
  • C. Product departmentalization.
  • D. Customer departmentalization.

Answer: D



NEW QUESTION # 28

Which of the following performance measures disincentivizes engaging in earnings management?

  • A. Linking performance to nonfinancial measures such as customer satisfaction and employees training.
  • B. Linking performance to the stock price.
  • C. Linking performance to profitability measures such as return on investment.
  • D. Linking performance to quotas such as units produced.

Answer: C



NEW QUESTION # 29

A company's financial balance sheet is presented below:

The company has net working capital of:

  • A. $350
  • B. $160
  • C. $490
  • D. $210

Answer: D



NEW QUESTION # 30

Senior management is trying to decide whether to use the direct write-off or allowance method for recording bad debt on accounts receivables.

Which of the following would be the best argument for using the direct write-off method?

  • A. It provides a better alignment with revenue.
  • B. It states receivables at net realizable value on the balance sheet.
  • C. It is the preferred method according to The IIA.
  • D. It is useful when losses are considered insignificant.

Answer: A



NEW QUESTION # 31

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