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AICACC Examination

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1 / 20

A low Return on Investment Ratio (ROI) indicates

2 / 20

Lower the Debt Equity ratio

3 / 20

Journals are also referred to as

4 / 20

Capital increases if __________ increases

5 / 20

What is variable sampling

6 / 20

What is an engagement letter?

7 / 20

Which of the following statements is correct regarding a shareholder’s right to inspect corporate
books and records? The right

8 / 20

Parent gave securities with an adjusted basis of $10,000 and fair market value of $9,000 to a child.
Later the child sold the securities for $7,000. What is the child's basis for the securities sold?

9 / 20

Which of the following defenses is likely to be successful in a suit alleging negligence by a CPA?

10 / 20

Which of the following financial instruments may be considered a derivative financial instrument?

11 / 20

Goll Co. has a 25% interest in the common stock of Rose Co. and an 18% interest in the common
stock of Jave Co. Neither investment gives Goll the ability to exercise significant influence over either
company's operating and financial policies. Which of the two investments should Goll account for
using the equity method?

12 / 20

Which of the following is an essential element of the audit trail in an electronic data interchange (EDI)
system?

13 / 20

Darv Co. had a current ratio of 3-to-1 and a quick ratio of 1-to-1. Current liabilities were $322,000.
What was the total amount for inventory and prepaid expenses?

14 / 20

A company sells DVD players for $200 per unit. The players have a unit variable cost of $160. The
company estimates that it will sell one home entertainment system for every four DVD players sold.
Home entertainment systems have a unit variable cost of $460 and sell for $600 per unit. The
company's fixed costs are $90,000. Assuming that the sales mix estimate is correct, how many DVD
players need to be sold for the company to break even?

15 / 20

What is an opportunity cost?

16 / 20

The expected selling price for a new product is $19.00. Management's goal is to obtain a 20%
contribution margin on all sales. If the new product has variable selling and distribution costs of $3.00
per unit, what is the product's target variable manufacturing cost?

17 / 20

Which of the following factors most likely would be considered an inherent limitation to an entity's
internal control?

18 / 20

Describe risk analysis

19 / 20

The purpose of establishing quality control policies and procedures for deciding whether to accept or
continue a client relationship is to

20 / 20

A compilation of financial statements in accordance with Statements on Standards for Accounting and
Review Services is limited to presenting

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