01/06/15

Question 1

COMMITTMENT TO INTEGRITY AND ETHICAL VALUES, HOLDING FOLKS ACCOUNTABLE, COMMITTMENT TO ATTRACT, RETAIN, AND DEVELOP COMPETENT INDIVIDUALS. THESE ARE PRINCIPLES RELATED TO THE ????????

Answer 1

CONTROL ENVIRONMENT

Question 2

THE PRESENT VALUE OF THE FUTURE CASH FLOWS/INITIAL INVESTMENT IS THE ????

Answer 2

EXCESS PV INDEX

Question 3

A $100 DECREASE IN TAXES EACH YEAR FOR THE NEXT FOUR YEARS WOULD RESULT IN THE HIGHEST????

Answer 3

PRESENT VALUE

Question 4

THE PROGRAMMING, OPERATING, AND LIBRARY FUNCTIONS SHOULD BE?????

Answer 4

SEGREGATED

A PROGRAMMER SHOULD NOT DESIGN SYSTEMS AND IMPUT THEM.

Question 5

THE THEORY UNDERLYING COST OF CAPITAL IS PRIMARILY CONCERNED WITH THE COST OF?????

Answer 5

LONG TERM AND NEW FUNDS

Question 6

TO CALCULATE DAYS SALES IN AR TAKE THE PERCENTAGE TIMES THE DAY PAID ON (.60X10-SIXTY PERCENT PAY ON DAY 10)+(.40X30)

Answer 6

DAYS SALES = 18 DAYS

Question 7

THE CHANGE IN SAVINGS / THE CHANGE IN INCOME IS THE MARGINAL PROPENSITY TO ????

Answer 7

SAVE

Question 8

THE EXPECTED INCREASE IN ANNUAL NET INCOME/INVESTMENT

Answer 8

THE ACCOUNTING RATE OF RETURN

Question 9

Free cash flow equals NOPAT plus depreciation minus change in working capital minus capital expenditures.

Answer 9

FREE CASH FLOW

Question 10

SUBORDINATED DEBENTURES ARE ?????AND PAID OUT ONLY AFTER OTHER LIABILITIES IN BK

Answer 10

UNSECURED

Question 11

_______COMPENSATION WILL MORE LIKELY RESULT IN SHIRKING BY MANAGEMENT

Answer 11

FIXED

Question 12

THE MOST IMPORTANT MEANS BY WHICH MONEY SUPPLY IS CONTROLLED IS

Answer 12

OPEN MARKET OPERATIONS (BUYING AND SELLING BONDS)

Question 13

THE ZERO COUPON METHOD IS USED TO VALUE

Answer 13

INTEREST RATE SWAPS

Question 14

One advantage of present value modeling is that it accounts for the ????

Answer 14

Compounding of returns-FANCY TALK FOR TVM

Question 15

THE PRIMARY OBJECTIVE OF DATA SECURITY CONTROLS IS?

Answer 15

TO ENSURE STORAGE MEDIA ARE SUBJECT TO AUTHORIZATION PRIOR TO ACCESS, CHANGE, OR DESTRUCTION

Question 16

Fixed manufacturing costs (FMC) are treated differently under absorption costing (AC) than under variable costing (VC). Specifically:

under AC, FMC is treated as a part of unit product cost, whereas
under VC, all FMC is expensed in the period in which it is incurred.
Killo’s ending inventory would be valued as follows:

Under AC 1,000 units × $110 = $110,000
Under VC 1,000 units × $ 90 = $ 90,000
The difference of $20,000 is the amount by which AC income would exceed VC income.

Answer 16

ABSORPTION COST INCOME IS HIGHER THAN VC

Question 17

MARGINAL PROPENSITY TO CONSUME =CHANGE IN CONSUMPTION / CHANGE IN INCOME

Answer 17

MARGINAL PROPENSITY TO CONSUME

Question 18

Section 404 of the Sarbanes-Oxley Act requires issuers of annual reports to include the scope and capabilities of the internal control system. It also requires the issuer to include procedures for financial reporting.

Answer 18

IC REPORTING

Question 19

a benefit of using electronic funds transfer for international cash transactions????

Answer 19

REDUCES THE FREQUENCY OF DATA ENTRY ERRORS

Question 20

weights current data heavier than older data. It is used to smooth forecast variation.

Answer 20

EXPONENTIAL SMOOTHING

Question 21

Residual income is the amount of net income in excess of a minimum desired rate of return on invested capital. This can be expressed in the equation: Reported net income - (Desired rate of return × Invested capital).

Answer 21

Residual income

Question 22

The recommended technique for evaluating projects when capital is rationed and there are no mutually exclusive projects from which to choose is to rank the projects by:

Answer 22

PROFITABILITY INDEX

Question 23

the schedule or curve that shows consumers’ willingness and ability to purchase a particular product at various alternative prices at a given moment in time.

Answer 23

agregate demand

Question 24

Which of the following would not be appropriate to consider in the physical design of a data center

Answer 24

Design of authorization tables for operating system access

Question 25

If Brewer Corporation’s bonds are currently yielding 8% in the marketplace, why would the firm’s cost of debt be lower?

Answer 25

Interest is deductible for tax purposes.

Question 26

A best-cost producer can gain a competitive advantage

Answer 26

by delivering a superior product at a lower price than the competition.

Question 27

Return on assets = Profit margin on sales x Asset turnover
= .02 x 5
= .10 or 10%

Answer 27

Return on assets = Profit margin on sales x Asset turnover
= .02 x 5
= .10 or 10%

Question 28

keep audit work papers for

Answer 28

7 yrs

Question 29

Gross domestic product (GDP) $4,000
- Depreciation (500)
——-
= Net domestic product (NDP)(at mkt cost) $3,500
- Indirect business taxes (210)
——-
= Net national income (NNI) (at factor cost) $3,290
- Corporate income taxes ( 50)
- Undistributed corporate profits ( 25)
- Social Security contributions (200)
+ Transfer payments 500
——-
= PERSONAL INCOME $3,515
=======

Answer 29

PERSONAL INCOME CALC

Question 30

Debt-servicing problems of less developed countries that primarily sell raw materials to the United States would be eased by:

Answer 30

An expanding United States economy with stable money supply growth would maintain a steady demand for raw materials of less developed countries. The moneys earned from the sale of raw materials will aid in servicing the debt of less developed nations.

Question 31

THE PRIMARY OBJECTIVE OF VARIABLE INTEREST RATES IS TO

Answer 31

REDUCE THE IMPACT OF RATE CHANGES ON BOTH PARTIES