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Q141. Which financial ratio measures how efficiently receivables are collected

1. Receivables turnover
2. Debt ratio
3. Current ratio
4. Gross margin

Correct Answer: 1. Receivables turnover

Explanation

Receivables turnover measures how efficiently an organization collects amounts owed by customers. It generally compares credit sales with average accounts receivable. A higher ratio may indicate faster collection although industry practices and credit terms should be considered. Debt ratio measures leverage. Current ratio measures short term liquidity. Gross margin measures profitability after cost of goods sold. Receivables turnover is therefore the correct answer because it focuses specifically on the conversion of credit sales into cash and can help identify changes in collection effectiveness customer payment behavior or credit management.

Q142. Which cybersecurity control blocks traffic from known malicious addresses

1. Data backup
2. Firewall filtering
3. File compression
4. Capacity planning

Correct Answer: 2. Firewall filtering

Explanation

Firewall filtering can block network traffic based on predefined rules such as source address destination service or protocol. Organizations can use these rules to restrict communication from known malicious or unauthorized sources. Data backup supports recovery. File compression reduces storage requirements. Capacity planning estimates future technology demand. Firewall filtering is therefore the correct answer because it directly controls network communication and can prevent selected unwanted traffic from reaching protected systems. Effective firewall management also requires regular rule review logging monitoring and change control to ensure that security settings remain appropriate.

Q143. Which management tool visually compares several performance measures with targets

1. Balanced scorecard
2. Audit charter
3. Risk register
4. Vendor file

Correct Answer: 3. Balanced scorecard

Explanation

A balanced scorecard combines financial and nonfinancial measures to help management evaluate performance against strategic objectives. It commonly includes perspectives related to financial results customers internal processes and learning or growth. An audit charter defines internal audit authority. A risk register records risks and responses. A vendor file contains supplier information. Balanced scorecard is therefore the correct answer because it provides a structured way to monitor several dimensions of organizational performance instead of relying only on financial results. It can help management connect operational measures with broader strategic goals.

Q144. Which project response eliminates a risk by removing the activity that creates it

1. Transfer
2. Acceptance
3. Reduction
4. Avoidance

Correct Answer: 4. Avoidance

Explanation

Risk avoidance removes the source of a risk by discontinuing or not starting the activity that creates the exposure. This approach may be appropriate when the possible consequences are unacceptable and other responses cannot reduce the risk sufficiently. Transfer shifts some consequences to another party. Acceptance retains the risk. Reduction uses controls to lower likelihood or impact. Avoidance is therefore the correct answer because it eliminates the specific risk source rather than managing it while continuing the activity. Management should still consider whether avoiding the activity creates other strategic or operational consequences.

Q145. Which accounting concept assumes an organization will continue operating in the foreseeable future

1. Going concern
2. Materiality
3. Conservatism
4. Matching

Correct Answer: 1. Going concern

Explanation

Going concern assumes that an organization will continue operating for the foreseeable future and will not be forced to liquidate or significantly reduce operations. This assumption affects how assets liabilities and other financial statement items are measured and presented. Materiality concerns the significance of information to users. Conservatism encourages caution when uncertainty exists. Matching relates expenses to related revenues. Going concern is therefore the correct answer because it provides a fundamental assumption underlying normal financial reporting unless significant evidence indicates that continued operations are doubtful.

Q146. Which control best reduces the risk of unauthorized journal entries

1. File archiving
2. Journal entry approval
3. Data compression
4. Printer logging

Correct Answer: 2. Journal entry approval

Explanation

Journal entry approval requires appropriate review and authorization before selected accounting entries are posted. This can reduce the risk of fraudulent or erroneous adjustments affecting financial statements. File archiving manages retained information. Data compression reduces storage size. Printer logging records printing activity. Journal entry approval is therefore the correct answer because journal entries can bypass normal transaction processing and may be used to manipulate financial results if controls are weak. Additional controls can include restricted posting access supporting documentation independent review and analysis of unusual entries.

Q147. Which economic concept measures responsiveness of demand to a change in price

1. Inflation
2. Opportunity cost
3. Price elasticity
4. Marginal cost

Correct Answer: 3. Price elasticity

Explanation

Price elasticity measures how strongly the quantity demanded of a product or service changes when price changes. Demand is considered more elastic when a relatively small price change causes a larger change in quantity demanded. Inflation describes broad price increases. Opportunity cost represents the benefit sacrificed by choosing another alternative. Marginal cost is the additional cost of producing one more unit. Price elasticity is therefore the correct answer because it specifically evaluates customer demand sensitivity to price changes and can support pricing marketing and revenue decisions.

Q148. Which security process removes access rights when an employee changes jobs

1. Backup testing
2. File encryption
3. Network routing
4. Access recertification

Correct Answer: 4. Access recertification

Explanation

Access recertification reviews user permissions to confirm they remain appropriate after job changes promotions transfers or other changes in responsibility. Unneeded rights should be removed so employees retain only the access required for current duties. Backup testing verifies recoverability. File encryption protects confidentiality. Network routing directs traffic. Access recertification is therefore the correct answer because permissions can become excessive over time if organizations grant new access without removing outdated rights. Regular reviews support least privilege and reduce the risk of unauthorized activity.

Q149. Which inventory method orders materials only when they are needed for production

1. Just in time
2. Safety stock
3. Bulk purchasing
4. Economic forecasting

Correct Answer: 1. Just in time

Explanation

Just in time inventory aims to receive materials close to when they are needed for production or sales. This can reduce inventory holding costs and storage requirements but may increase exposure to supply disruptions. Safety stock intentionally maintains extra inventory. Bulk purchasing acquires larger quantities. Economic forecasting estimates future conditions. Just in time is therefore the correct answer because it minimizes inventory by coordinating supply closely with demand. Organizations using this approach need reliable suppliers accurate scheduling and strong supply chain monitoring to avoid production interruptions.

Q150. Which financial statement reports revenues and expenses for a period

1. Balance sheet
2. Income statement
3. Cash budget
4. Bank reconciliation

Correct Answer: 2. Income statement

Explanation

The income statement reports revenues expenses gains losses and resulting profit or loss over a defined accounting period. The balance sheet reports assets liabilities and equity at a specific point in time. A cash budget forecasts future cash inflows and outflows. A bank reconciliation compares accounting records with bank records. Income statement is therefore the correct answer because it focuses on financial performance during a period rather than financial position at one date. Users can analyze margins expense trends and profitability using the information reported.

Q151. Which project technique estimates the shortest possible completion time based on dependent activities

1. Cost budgeting
2. Quality review
3. Critical path analysis
4. Market analysis

Correct Answer: 3. Critical path analysis

Explanation

Critical path analysis identifies the sequence of dependent project activities that determines the earliest possible completion date. Tasks on the critical path generally have little or no scheduling flexibility and delays can affect the overall project. Cost budgeting estimates project spending. Quality review evaluates deliverables or processes. Market analysis examines external conditions. Critical path analysis is therefore the correct answer because it helps project managers understand which activities require the closest scheduling attention and where delays can directly extend the final completion date.

Q152. Which cloud security concern arises when several customers share the same physical infrastructure

1. Data retention
2. Capacity growth
3. File naming
4. Tenant isolation

Correct Answer: 4. Tenant isolation

Explanation

Tenant isolation ensures that customers sharing cloud infrastructure cannot access or interfere with one another data workloads or management resources. Weak isolation can create confidentiality integrity and availability risks. Data retention concerns how long information is preserved. Capacity growth concerns resource expansion. File naming does not address shared infrastructure security. Tenant isolation is therefore the correct answer because cloud environments often rely on logical separation between customers using the same physical resources. Strong access control virtualization security network segmentation and monitoring help support effective isolation.

Q153. Which organizational measure evaluates how often employees leave during a period

1. Employee turnover
2. Productivity
3. Absenteeism
4. Utilization

Correct Answer: 1. Employee turnover

Explanation

Employee turnover measures how frequently employees leave an organization during a defined period. High turnover can increase recruiting training and productivity costs and may indicate problems with compensation leadership culture or working conditions. Productivity compares outputs with inputs. Absenteeism measures time employees are absent from work. Utilization measures how much of a resource is being used. Employee turnover is therefore the correct answer because it specifically tracks workforce departures and can help management identify retention concerns and human resource risks.

Q154. Which control helps prevent payment of the same invoice twice

1. Data encryption
2. Duplicate invoice check
3. Password rotation
4. File backup

Correct Answer: 2. Duplicate invoice check

Explanation

A duplicate invoice check compares invoice numbers vendors amounts and other details to identify transactions that may already have been processed. This can prevent accidental or fraudulent duplicate payments. Data encryption protects confidentiality. Password rotation strengthens authentication. File backup supports recovery. Duplicate invoice check is therefore the correct answer because it directly targets the risk of paying the same obligation more than once. Organizations can strengthen the control with system validation invoice matching payment approvals and vendor master controls.

Q155. Which leadership style focuses on inspiring employees through vision and change

1. Autocratic leadership
2. Bureaucratic leadership
3. Transformational leadership
4. Passive leadership

Correct Answer: 3. Transformational leadership

Explanation

Transformational leadership motivates employees by communicating a compelling vision encouraging innovation and inspiring commitment to organizational change. Autocratic leadership concentrates decisions with the leader. Bureaucratic leadership emphasizes formal rules and procedures. Passive leadership provides limited direction or involvement. Transformational leadership is therefore the correct answer because it focuses on influencing employees through purpose inspiration and development rather than relying mainly on authority or transactional rewards. It can be especially useful during major organizational change when employees need a clear sense of direction and motivation.

Q156. Which audit technique obtains evidence by watching employees perform procedures

1. Inquiry
2. Reperformance
3. Inspection
4. Observation

Correct Answer: 4. Observation

Explanation

Observation involves watching employees perform procedures or controls in real time. It can provide evidence about how work is actually performed rather than relying only on descriptions. Inquiry involves asking questions. Reperformance means independently repeating a procedure. Inspection involves examining records documents or physical assets. Observation is therefore the correct answer because the auditor directly witnesses the activity. A limitation is that employees may behave differently when they know they are being observed so auditors often combine observation with other evidence gathering methods.

Q157. Which financial concept represents costs already incurred that cannot be recovered

1. Sunk cost
2. Variable cost
3. Opportunity cost
4. Marginal cost

Correct Answer: 1. Sunk cost

Explanation

A sunk cost is a past expenditure that has already been incurred and cannot be recovered regardless of future decisions. Good decision making generally focuses on future relevant costs and benefits rather than allowing sunk costs to influence choices. Variable cost changes with activity. Opportunity cost is the benefit sacrificed by choosing one alternative. Marginal cost is the additional cost of producing one more unit. Sunk cost is therefore the correct answer because it has already occurred and should normally not affect decisions about whether to continue or abandon a future course of action.

Q158. Which IT control ensures system changes are tested before entering production

1. Data compression
2. Change testing
3. File archiving
4. Capacity monitoring

Correct Answer: 2. Change testing

Explanation

Change testing verifies that system modifications operate as intended before they are moved into the production environment. It helps identify defects security problems and unintended effects before users depend on the change. Data compression reduces storage use. File archiving manages older information. Capacity monitoring tracks resource consumption. Change testing is therefore the correct answer because untested changes can create processing errors outages or vulnerabilities. Effective change management also requires authorization segregation between development and production documentation and post implementation review when appropriate.

Q159. Which strategic tool evaluates political economic social and technological external factors

1. SWOT analysis
2. Ratio analysis
3. PEST analysis
4. Break even analysis

Correct Answer: 3. PEST analysis

Explanation

PEST analysis evaluates political economic social and technological factors in the external environment that may affect an organization. SWOT analysis combines internal strengths and weaknesses with external opportunities and threats. Ratio analysis evaluates financial relationships. Break even analysis identifies the activity level at which revenue equals cost. PEST analysis is therefore the correct answer because it specifically provides a structured way to assess broad external forces that can influence strategy risk regulation customer behavior and technology decisions. Management can use the results to anticipate changes and adapt plans.

Q160. Which governance practice best supports independent challenge of management decisions

1. Reduced board reporting
2. Shared authority
3. Informal oversight
4. Independent directors

Correct Answer: 4. Independent directors

Explanation

Independent directors can provide objective oversight and challenge management decisions without the same operational responsibilities or conflicts faced by executives. Reduced board reporting weakens oversight. Shared authority alone does not ensure independence. Informal oversight may lack structure and accountability. Independent directors is therefore the correct answer because effective governance benefits from board members who can evaluate management proposals objectively and protect broader stakeholder interests. Independence should be supported by appropriate expertise access to information and clear authority to question management when significant issues arise.