BEC 16 Flashcards
Under which of the following described lease terms would the lessee be responsible during the term of the lease for executory costs associated with the leased asset?
Net Lease
Net-Net Lease
AICPA.08204BEC-3.B.2A
Net Lease: YES
Net Net Lease: YES
Under a net lease, the lessee assumes the executory costs associated with the asset during the lease, including such elements as maintenance, taxes and insurance.
In a net-net lease, the lessee assumes responsibility for the executory costs during the life of the lease, as well as for a residual value at the end of the lease.
A poor quality connection caused extensive line noise, resulting in faulty data transmission.
Which of the following controls is most likely to detect this condition?
A. Line check. B. Batch control total. C. Closed loop verification. D. Parity check.
D. Parity Check
A parity check is designed to detect errors in data transmission.
Closed Loop Verification
Assists in the detection of data entry errors in online real-time applications.
(AICPA.040145BEC-SIM)
Which of the following is not an account used by the U.S. to account for transactions and balances with other nations (i.e., those not in the U.S. balance of payments statement)?
A. Current account. B. Non-current account. C. Capital account. D. Financial account.
B. Non-current account
There is no “non-current account” in the balance of payments statement. This title is used in financial accounting for private (and other) entities to refer to an account that is not expected to be settled within one year or within the operating cycle of the entity, whichever is longer, but it is not used in connection with accounting and reporting of the U.S. international balance of payments.
List 3 components of the US balance of payments statement
current account
capital account
financial account
Define Financial Account in Balance of Payments Accounting
Reports the dollar value of:
U.S.-owned assets abroad, and
Foreign-owned assets in the U.S.
The sum of these is the financial account balance in the balance of payments account.
An employee mistakenly enters April 31 in the date field. Which of the following programmed edit checks offers the best solution for detecting this error?
A. Online prompting. B. Mathematical accuracy. C. Preformatted screen. D. Reasonableness.
D. Reasonableness.
April has only 30 days. The reasonableness test will catch this error.
Online prompting is not a program to edit check. It is a nonsense expression that has no meaning in computer security.
Hoyt Co. manufactured the following units:
Saleable 5,000
Unsaleable (normal spoilage) 200
Unsaleable (abnormal spoilage) 300
The manufacturing cost totaled $99,000. What amount should Hoyt debit to finished goods?
A. $90,000. B. $93,600. C. $95,400. D. $99,000.
B. $93,600.
Normal spoilage is a manufacturing cost because it is an expected and inherent part of production. Thus, it is included in the cost of finished goods.
Abnormal spoilage is the amount of spoilage in excess of normal spoilage, and it is treated as a period cost.
The total units completed are 5,500 (5,000 + 200 + 300). Of this total, 5,200 are included in finished goods.
Thus, 5,200/5,500 of the total cost incurred is included in finished goods. The remainder is a period cost.
Debit to finished goods = $93,600 = (5,200/5,500)$99,000
(AICPA.101244BEC)
Which of the following items would be most critical to include in a systems specification document for a financial report?
A. Cost-benefit analysis. B. Data elements needed. C. Training requirements. D. Communication change management considerations.
B. Data elements needed.
Specifying the required data elements would be a critical activity in determining the attributes of a document in a financial reporting system.
(AICPA.101241BEC-SIM)
Which of the following is not included in what is considered the natural rate of unemployment?
A. Cyclical unemployment. B. Structural unemployment. C. Frictional unemployment. D. Seasonal unemployment.
A. Cyclical unemployment.
Cyclical unemployment, which results from a downturn in the business cycle that has reduced the current need for workers, is not considered an element of the natural rate of unemployment. The natural rate of unemployment would include structural, frictional, and seasonal unemployment.
List 3 elements of the natural rate of unemployment
Structural unemployment
Frictional unemployment
Seasonal unemployment
(AICPA.061201BEC-SIM)
The following customer data is stored in the sales processing system to a regional produce distributor:
CustomerNumber, CustomerName, CustomerPhone, CustomerContact, CustomerCreditLimit
Which of the following is true?
A. CustomerNumber is an example of a field. B. CustomerNumber is an example of a data value. C. CustomerNumber is an example of a record D. All of the above are true.
A. CustomerNumber is an example of a field (also known as an attribute).
Data value
A specific value found in a field
Field
A group of characters (bytes) identifying a characteristic of an entity
Record
A group of related fields (or attributes) describing an individual instance of an entity (e.g. a specific invoice)
