2Which one is not an objective of Internal Control on Finanacial Statements?

A. Safeguarding of assets of the company

B. Financial Statements are free from material misstatements

C. Financial Statements are prepared on the basis of IFRS

D. Financial Statements are correctly audited by the Independent Auditors,

Question 3 ABC Co sold goods on credit for 50,000 on 20 Feb 2021 to XYZ Co on terms 3/5; n/30. Ram Co. paid on 25 Feb 2021. Journal Entry to record this transaction on 25 Feb 2021 in the books of ABC Co is

A. Debit Cash $48,500 credit discount $1,500 Credit AR (XYZ) $50,000

B. Debit Cash $48,500 debit discount $1,500 Credit AR (XYZ) $50,000

C. Debit Cash $47,750 credit discount $1,250 Credit AR (XYZ) $50,000

D. Debit Cash $50,000 debit discount $0 Credit AR (XYZ) $50,000.

Question 4 Which of the following makes for an effective control environment with regards to commitment to competence?

A. Increase interaction between senior management and operating management.

B. Assure independence from management.

C. Its culture is one in which quality and competence are openly valued.

D. Reduce pressure to meet unrealistic performance targets.

Question 5 ABC Co. purchased a vehicle on 1 April 2020 for $66,000. Its EUL is 10 years and the RV is $6,000. What account is credited on 31 Dec 2021 to record annual depreciation using straight line method? ABC Co. uses calendar year as its financial year

. A. Depreciation Expense $4,375

B. Accumulated Depreciation $6,000

C. Accumulated Depreciation $5,250

D. Depreciation Expense $4,500

Question 6 In the COSO framework, the term risk tolerance refers to

A. Level of risk an organization is willing to accept.

B. Acceptable variation with respect to a particular objective.

C. Risk of an event after considering management response.

D. Events that require no risk response.