8

Question 1

BOD relationship with the company is a:

Answer 1

fuduciary relationship

Question 2

A basic assumption of activity-based costing (ABC) is that:

Answer 2

products or services require the performance of activities, and activities consume resources.

C.
only costs that respond to unit-level drivers are product costs.

Question 3

project management is key to:

Answer 3

planning, implementing, and monitoring.

Question 4

fixed payments on long-term bonds vs fixed payments on preferred stock

Answer 4

Interest payments are fixed on long-term bonds

Dividend payments are fixed on preferred stock

Question 5

the primary purpose of a database management system is to:

Answer 5

reduce data redundancy

Question 6

porter’s 5 forces are:

Answer 6

1. threat of new competition
2. threat of substitute goods or services
3. Bargaining power of customers
4. Bargaining power of suppliers
5. intensity of competition

Question 7

hurdle rate-

Answer 7

synonym of required rate of return

Question 8

A decision table indicates the::

Answer 8

alternative logic conditions and actions to be taken in a program.

A decision table is useful in building logical models. It is a tabular representation of logical processes. It indicates the alternative logic conditions and actions to be taken in a program.

Question 9

ERM -

Answer 9

the process used by organizations to manage risk and seize opportunities to achieve the goals of the organization. It provides a framework for risk management, determines response strategy, and monitors the progress.

Question 10

Economic order quamtity (EOQ) -

Answer 10

amount of invoentory that should be ordered to minimize costs related to carrying and ordering.

Question 11

2 types of valuation engagements in SSVS1:

Answer 11

1. in a valuation engagement, the valuator can use any valuation approach (that is professional)
2. in a conclusion engagement, the valuator and client must agree on a certain approach

Question 12

Job order costing:

Answer 12

assigns costs to specific production batches or jobs

-would be concerned with determining cost of partial shipments and charging material and labor cots to each job.

Question 13

process costing:

Answer 13

assigns costs to processes and calculates the average cost for all units produced.

-used when goods and services that are similar are produced in large quantities

Question 14

TDRA (top-down risk assessment) deals with:

Answer 14

significant accounts and higher levels are examined first

Question 15

most important control objective in the audit of an online order entry system that maintains information critical to management decisions?

Answer 15

data integrity

Question 16

Replacement cost is:

Answer 16

a measure of current value. Since revenue and most expenses are also stated in terms of current value, a more consistent performance measure (i.e., return on investment or residual income) will result when all variables are stated in current dollars. Use of replacement or current values assures that a more relevant performance result will be obtained.

Question 17

If a database has integrity, this means that the:

Answer 17

database has only consistent data.

Integrity relates to the quality of a database. Among other considerations, data should be consistent and data inputs should conform to a predetermined standard of elements, size, and content.

Question 18

sensitivty analysis is:

Answer 18

any process that measures the impact of change.

can be in a single variable or a combination of variables on profits or on some other decision variable.

Question 19

expected value analysis:

Answer 19

is used to determine the mean value of a random variable over an infinite number of outcomes.

Question 20

PERT is

Answer 20

a network model used for planning and managing the system with well-defined activities and events (i.e., a start and a finish of activity).

Question 21

Regression analysis is

Answer 21

a statistical tool that measures the average amount of change in the dependent variable that is associated with a unit change in the amount of one or more independent variables.

Question 22

Comsumer price index

Answer 22

compares prise of goods in a given year to a base year

Question 23

Devices that are used only to perform sequential file processing will not permit:

Answer 23

data to be edited on a real-time basis.

Question 24

The Sarbanes-Oxley Act changed the way financial reports are treated. What section of the act requires the CEO to review the financial statements?

Answer 24

section 302

Question 25

E-commerce security measures include

Answer 25

encryption
firewalls
user account management

Question 26

Systemic risk is also called

Answer 26

market risk

Question 27

Depreciation;

Answer 27

not included on after-tax inflows

Question 28

managemnt reporting stystems

Answer 28

relay on both internal and external data

Question 29

receiving reports are used to:

Answer 29

update inventory

Question 30

Business process management is supported by

Answer 30

the approaches, techniques, and measures of the organization