SOFE SOFA-CFE Exam Practice Test Instant Access

Question 1

The formula to calculate quick ratio is:

AQuick ratio = (Credit + Securities + Receivables) / Current liabilities

BQuick ratio = (Cash + Securities + Payables) / Final liabilities

CQuick ratio = (Credit + Securities + Payables) / Final liabilities

DQuick ratio = (Cash + Securities + Receivables) / Current liabilities

Answer : D

Question 2

A fraction analysis is a means of measuring the relationship between two different financial statement amounts.

ATrue

BFalse

Answer : B

Question 3

A technique for analyzing the percentage change in individual financial statement items from one year to the next in known as:

AVertical analysis

BHorizontal analysis

CFraction analysis

DRatio analysis

Answer : B

Question 4

Which of the following is NOT included in financial statement analysis?

AVertical analysis

BHorizontal analysis

CFraction analysis

DRatio analysis

Answer : C

Question 5

Judgments about the risk of material misstatement due to fraud have an overall effect on how the audit is concluded in what ways?

AAssignment of personnel and supervision

BAccounting principles

CPredictability of auditing procedures

DAll of the above

Answer : D

Question 6

Purchases on ______________ may require a signature or other form of authorization from a designated company representative.

ACompany account

BAuthorized account

CMerchandise for cash account

DCharge account

Answer : D

Question 7

Sale orders also can be altered by employees who seek to obtain merchandise at their employer's expense.

ATrue

BFalse

Answer : B

SOFE SOFA-CFE Certified Financial Examiner Exam Practice Test