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ISM Supply Management Core Exam Sample Questions (Q197-Q202):

NEW QUESTION # 197
What are the items that companies using the International Financial Reporting Standards (IFRS) might place in different sections within the statement of cash flows compared to those reporting under US Generally Accepted Accounting Principles (GAAP)?

A. Capital expenditures and depreciation
B. Loan payments and stock issued
C. Inventory and net income changes
D. Interest and dividends

Answer: D

NEW QUESTION # 198
A manager learns that the government is planning to add an excise tax on the product the company sells. After researching, the manager expects that total expenditures for the good will rise. Of the following goods, which does the company MOST likely sell?

A. Ice cream
B. Raspberries
C. Leather handbags
D. Milk

Answer: D

NEW QUESTION # 199
A supply manager is preparing the department's budget for the next year. Which of the following is the FIRST step in this process?

A. Presenting the budget for review
B. Controlling expenditures during the budgetary year
C. Defining the needed resources
D. Reviewing the organization's goals

Answer: D

NEW QUESTION # 200
A project has an initial cost of $18,000. The estimated net cash flows of the project are as follows:

What is the project's payback period?

A. 3.5 years
B. 4.0 years
C. 3.75 years
D. 3.0 years

Answer: A

NEW QUESTION # 201
According to the Sarbanes-Oxley Act, to whom must an audit committee for a publicly traded company answer?

A. The firm's CEO
B. The Securities and Exchange Commission
C. The company's shareholders
D. The Internal Revenue Service

Answer: C

Explanation:
The audit committee for a publicly traded company must answer to the company's shareholders. The Sarbanes-Oxley Act mandates significant corporate governance reforms regarding audit committees, making them responsible for the appointment, compensation, and oversight of the issuer's auditor12. This aligns with the objective of ensuring that the audit committee acts in the best interest of the shareholders, maintaining transparency and accountability in financial reporting.

NEW QUESTION # 202
......

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Newest Exam CORe Flashcards & Leading Provider in Qualification Exams & Updated CORe Exam Introduction

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ISM Supply Management Core Exam Sample Questions (Q197-Q202):

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