The following forms of short-term borrowing are available to an entity: Floating lien Factoring Revolving credit Chattel mortgages Bankers' acceptances . Lines of credit Commercial paper
The forms of short-term borrowing that are unsecured credit are:

• A.Floating lien, revolving credit, chattel mortgage, and commercial paper
• B.Factoring, chattel mortgage, bankers' acceptances, and line of credit
• C.Floating lien, chattel mortgage, bankers' acceptances, and line of credit
• D.Revolving credit, bankers' acceptances, line of credit, and commercial paper

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The following information and diagram apply to a project:

The earliest completion time for the project is:

• A.11 days.
• B.14 days.
• C.15 days.
• D.20 days.

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According to the International Professional Practices Framework, internal auditors who are assessing the adequacy of organizational risk management processes should not:

• A.Recognize that organizations use different techniques for managing risk.
• B.Seek assurance that the key objectives of the risk management processes are being met.
• C.Treat the evaluation of risk management processes differently from the risk analysis used to plan audit engagements.
• D.Determine and accept the level of risk for the organization.

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Based solely on the cost figures presented, the cost of developing the computer application will be:

• A.Less than acquiring the purchased software package by US $3,500.
• B.Less than acquiring the purchased software package by US $500.
• C.More than acquiring the purchased software package by US $1,550.
• D.More than acquiring the purchased software package by US $3,550.

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IAS 34, interim Financial Reporting, provides guidelines for interim reporting stating that enterprises:

• A.May use estimates based on sales margins for interim inventory valuation although a different method is used for annual reporting.
• B.Must determine income tax expense by applying progressive tax rates to income on a quarterly basis.
• C.May prorate extraordinary items over four quarters.
• D.Need not disclose basic and diluted earnings per share each quarter.

Correct Answer: A

Essentially the same reporting methods should be used for interim and annual financial statements. However, the preparation of interim financial reports ordinarily requires a greater use of estimates. For example. IAS 34 states that complete inventory-taking and valuation may not be required at interim dates. Estimates based on sales margins may suffice. Copper Co. had the pre-closing trial balance at December 31 shown below. Additional information: The balance of opening inventory was US $140,000. The long term debt pays interest at a rate of 10% per annum, payable every 12 months. The debt was issued on July 1 of the current year and originally had 5 years to maturity. The assets classified as property, plant, and equipment have a 10-year estimated useful life and were 1 year old at the start of the current year Straight-line depreciation is used.

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