B1-B6 Mixed Flashcards
earnings statement is part of which process?
human resources and payroll
production schedule is what process?
manufacturing
name 3 way match docs
receiving report
invoice
purchase order
futures and call options do what?
hold the price constant
is debt or equity cheaper to have?
debt, such as bonds bec ause of the tax deduction
how can labor strike risk be diversified?
investing into different labor sources less susceptible to strikes
risk averse
expecting higher return for greater risk
what ERM component addresses commitment to core values?
governance and culture
materials requirement planning
projects and plans inventory levels to control the usage of raw materials in production.
what is a draft?
slows down payable float
effective interest
amount of interest/compensating balance
which element of coso erm does attracting, retaining, and obtaining capable employees fall under?
governance and culture
trade credit
provides largest source of short term financing for small companies
times interest earned ratio=
earnings before interst and tax/interest expense
how is the money supply increased?
lower discount rate
buy bonds
lower req. reserve ratio
what do monopoly plans focus on?
profitability from production to max out profits
what does beta measure?
market volativity
cash conversion formula
days in inventory+ days in sales-days in payables
what do systems steering committees do?
oversight of information systems
what is the purpose of data security controls?
to ensure storage media are protected
cost of retained earnings
dividend/price+growth
why is debt better during inflation
because you are paying it back with inflated money that is worth less than what was borrowed
if the US$ declines how does it benefit us exporters?
makes US goods less expensive for foreign counties so more goods can be sold at US rate. volume sales helps the uS
what type of depreciation is not included in cash flow for capital budgeting?
book depreciation because it is a noncash expense. the tax shield is for tax depriciation not book
