Aptitude Test for Auditors

ProCoder Inc. reported the following information on Dec 31st. If we ignore income tax, what should ProCoder report as comprehensive income as of Dec 31?

Here’s the balance sheet for SinkedIn Ltd as of December 31, 2022:

SinkedIn Ltd acquires a smaller company for $100,000 cash. The acquisition adds $60,000 in goodwill and increases the long-term investments by $40,000. 

Here’s the new balance sheet created after these changes:

Which of the following rows are erroneous rows in the balance sheet after the acquisition?

Review the following balance Sheet for Company Sinclair as of December 31, 2023 (in thousands of dollars)

Suppose that Company Sinclair has a tax rate of 30%. What will be the company's new equity balance if the company sells all its long-term investments at their book value, pays off all its short-term debt, and distributes the remaining cash as a dividend to shareholders?

The CEO of Snipr. Inc wants to grow monthly gross profit by 4%. If costs stay the same, what does the sales turnover need to be in February to achieve this goal?

Alex’s uncle is a magician who gave them a magic bag in which coins get doubled each time you put those coins into it. Initially, Alex had few coins with them. So, Alex put all the coins, and the coins got doubled. Alex took out all the coins and gave a few to their friend and then again put the remaining coins back in the bag. The coins doubled again; Alex took out all the coins again and gave a few coins to their second friend. Alex then put the remaining coins in the bag and the coins doubled again. Alex took out all the coins and gave a few coins to their third friend. 

There were no coins left with Alex when Alex gave coins to the third friend and Alex gave an equal number of coins to each friend. What is the minimum number of coins Alex had initially and how much did Alex give to each friend?

A: Started with 3 coins
B: Started with 5 coins
C: Started with 6 coins
D: Started with 7 coins
E: Started with 9 coins
F: Gave 3 coins in every turn
G: Gave 4 coins in every turn
H: Gave 5 coins in every turn
I: Gave 7 coins in every turn
J: Gave 8 coins in every turn
K: Gave 9 coins in every turn

In my house, there are three clocks of different shapes – a round clock, a square clock, and a rhombus clock. The rhombus clock is always accurate whereas the round clock gains 2 minutes every day and the square clock loses 2 minutes every day. I checked the clocks on July 22nd, 2007 at 10 PM, and they were showing different times.

Two hours later, when I checked, the clocks were showing the same time, then on which date will all three clocks show the same time again?

A: 17 July 2008 
B: 23 Sep 2007
C: 25 July 2009
D: 19 Aug 2008
E: 26 July 2008
F: 28 Nov 2007
G: 11 June 2008
H: 15 Aug 2007

Your company recently opened a second office overseas. Some of the people from the original office will be relocating. All the people hired in the last six months will continue working in the original location where they were hired. Which of the following statements can be true regarding employees relocating?

The cost of manufacturing phones in China is twenty percent lesser than the cost of manufacturing phones in Vietnam. Even after adding shipping fees and import taxes, it is cheaper to import phones from China to Vietnam than to manufacture phones in Vietnam. Which of the following statements is best supported by the given information. 

A: The shipping fee from China to Vietnam is more than 20% of the cost of manufacturing a phone in China.
B: The import taxes on a phone imported from China to Vietnam is less than 20% of the cost of manufacturing the phone in China. 
C: Importing phones in Vietnam will cut 20% of the manufacturing jobs in Vietnam.
D: It takes 20% more time to manufacture a phone in Vietnam than it does in China.
E: Labour costs in Vietnam are 20% higher than in China.

A large real estate company conducted a recent study of their customers. The study was designed to uncover insights regarding the main criteria for choosing to invest in a residential property. A majority of the customers surveyed stated the 'returns profile' was their main priority, followed by 'development potential' and 'stability of income'. 'Portfolio legacy' ranked at the bottom in the list of factors. It was interesting to note that respondents were less likely to have residential holdings that formed part of mixed-use assets i.e. as an add on to commercial investment. One might assume that more investors are proactively investing in residential real estate rather than having incidental exposure via business investments. 

Based on the given passage, what can we say about the following statement?

Business owners having commercial premises often have a residential property as part of their portfolio.

A tennis coach was trying to put together a team of 4 players for a tennis championship out of 7 players. R, S, T are the male players, and W, X, Y, Z are the female players. Note that all players have equal ability, and the team needs to have atleast 2 male players. While selecting the team we need to keep in mind that all 4 players should be able to play with each other. 

We also need to keep the following restrictions in mind:
- R cannot play with Y
- S cannot play with W
- T cannot play with Z

Which of the following are true:

A: S and Z cannot be in the team together.
B: T and Y cannot be in the team together.
C: T and X cannot be in the team together.

A code ("EIG AUC REO RAI COG") was sent to the criminal office by a CID agent named Batra.  However, four of the five words are fake, with only one containing the information. They also included a clue in the form of a sentence: "If I tell you any character of the code word, you will be able to tell how many vowels there are in the code word." Are you able to figure out what the code word is?

A: RAI 
B: EIG
C: AUC
D: REO
E: COG
F: None

Myra is working on her thesis for which she created a scatter plot of the number of teachers and the number of college graduates for cities in Australia. She noticed a positive correlation. Which of these do you think is the probable explanation for this correlation?

A: Teachers encourage people to go to college, so an increase in the number of teachers leads to an increase in the number of college graduates. 

B: Some college graduates choose teaching as a profession after graduating, so an increase in the number of college graduates also leads to an increase in the number of teachers.

C: There are more college graduates and teachers in higher income cities, so income is a confounding variable here, make it difficult to prove causation between number of teachers and number of college graduates. 

D: Cities with a higher population have more teachers and more college graduates, so the correlation is due to a third variable (population of city).

E: The provided data is insufficient, so it is extremely difficult to establish the reason for the correlation.

F: Most college students choose non-teaching professions after graduating, which explains the correlation. 

G: In Australia, college students are encouraged by their teachers to choose teaching as a profession after graduating.

Some friends live in adjacent apartments in a building in Central Perk, New York. We want to write a function to search the apartment number by name. Which of the following functions should we use?

We have two Excel files with organization data. One file has Organization ID and Organization Name fields, whereas the second file has Organization ID, Organization Name and Country fields. We wrote a query to retrieve the data from both files. Here’s a sample of the data retrieved:

We want to ensure Organization ID field is unique. Which of the following is the ideal solution that ensures Organization ID field is unique while retaining Country data?

A: Select the Organization ID and Country columns, and then click Keep Duplicates.
B: Select the Organization ID and Country columns, and then click Remove Duplicates.
C: Use Group BY function to group the rows by Organization ID. Specify output columns for Organization Name and Country using MAX operation.
D: Select Organization ID column and then click Remove Duplicates. Then specify output columns for Country using MAX operation.

Here’s a sample Excel data source:

Here’s the expected data format: 

Which of the following is the correct way to transform the data from the query editor to achieve the result?

A: Columns to Select: Student Only
B: Columns to Select: Student and Student ID
C: Columns to Select: Primary and Secondary
D: Command to Use: Pivot Column
E: Command to Use: Reverse Rows
F: Command to Use: Unpivot Columns

We are looking to find the contact number of the only blood donor with blood group O-. Which function should we use to look up the correct contact number? Here's the documentation for VLOOKUP: =VLOOKUP(lookup value, range containing the lookup value, the column number in the range containing the return value, Approximate match (TRUE) or Exact match (FALSE)).

A: =VLOOKUP("O-", A1:E10, 3, TRUE)
B: =VLOOKUP("O-", A1:E10, 3, FALSE)
C: =VLOOKUP("O-", D1:D10, 4)
D: =VLOOKUP("O-", D1:D10, 3)
E: =VLOOKUP("O-", A1:E10, 4, TRUE)
F: =VLOOKUP("O-", A1:E10, 4, FALSE)
G: =VLOOKUP("Kane", A1:E10, 4)

Four airline operators A, B, C and D operate on a popular route between 2 cities, Rome and Venice in Italy. Airline A wanted to increase the number of seats sold, so they reduced their fares for this route. Airlines B, C, D imitated this move immediately. The general belief is that the volume of air travel between Rome and Venice would increase as a result of this. Which of the following statements, if true, would add trust to the general belief?

A: All 4 airlines see increased profits.
B: Airlines start slashing rates for other routes as well.
C: A study shows that around 80% of air travel in Italy is company sponsored.
D: A study shows that air travellers in Italy are price sensitive.

Folks should call Gurj Clooners if they want to:

Cigarettes account for only 23% of tobacco consumption, and only 16% of 250 million tobacco consumers use cigarettes. However these 16% contribute 85% of the tax revenues to the Exchequer from the tobacco sector. The punitive cigarette taxation regime has kept the tax base narrow, and lowering taxes will expand this base. Which of these best bolsters the conclusion that lowering duties will expand the tax base?

A: The cigarette manufacturers’ association has decided to indulge in aggressive promotion.

B:  Cigarette manufacturers are lobbying for a reduction on duties.

C: There is a likelihood that tobacco consumers will shift to cigarette smoking if cigarette prices reduce.

D: An increase in duties on non-cigarette tobacco may lead to a shift in favor of cigarette smoking.

E: There is a likelihood that tobacco consumers will shift to cigarettes if cigarette prices reduce.

F: A decrease in duties on non-cigarette tobacco may lead to more tobacco consumers shifting to cigarettes. 

G: Cigarette smokers are becoming increasing aware of associated health risks.

H: Increased health warnings could reduce the tax base.

This note informs Savannah that:

A: she can purchase new toys at a discounted rate.
B: the toy store has a new collection that she can purchase from now.
C: she can sell her used toys to the store.
D: she can get used and new toys in the ongoing sale at the store.