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BEC CPA Exam > BEC 3 > Flashcards

BEC 3 Flashcards

1
Q

When does a surplus occurs:

A

When Quantity Supplied > Quantity Demanded

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2
Q

A product whose demand is positively related to income

A

Normal Good(Premium Foods such as steak)

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3
Q

If the income elasticity of demand is negative(demand decreases as income increases) the good is

A

Inferior Good

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4
Q

Sales of securities with only limited amount of registration and disclosure

A

Private Placement

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5
Q

A single seller of a good or service for which there are no close substitutes

A

Monopolist

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6
Q

Mutual Interdependence among firm is a major characteristic of:

A

Oligopoly

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7
Q

In a cartel, firms jointly act as:

A

A Monopolist

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8
Q

Examines individual units of an economy

A

Microeconomics

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9
Q

Examines the big picture

A

Macroeconomics

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10
Q

What are the potential risks of globalization?

A
  1. Cultural Differences
  2. Political Risk
  3. Balance of Power
  4. Supply Chain Mgmt
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11
Q

The normal sequence of a business cycle:

A
  1. Expansion
  2. Peak
  3. Contraction
  4. Trough
  5. Recovery
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12
Q

Which of the following might be considered the most expansionary set of fiscal policies

A

Increase in gov’t purchase and decrease in taxes. AD curve shift Right and Real GDP to increase

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13
Q

As domestic currency appreciates in value or becomes stronger:

A

It becomes more expensive in terms of a foreign currency.

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14
Q

What are the 3 risk preferences behaviors?

A
  1. Risk-Indifferent(less common)
  2. Risk-Averse(Most common)
  3. Risk-Seeking(less common)
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15
Q

An increase in the level of risk would not result in an increase in mgmt’s required rate of return is

A

Risk-Indifferent Behavior

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16
Q

An increase in the level of risk would result in an increase in mgmt’s required rate of return is

A

Risk-Averse

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17
Q

An increase in the level of risk would result in an decrease in mgmt’s required rate of return is

A

Risk-Seeking Behavior

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18
Q

Risk that represents a portion of a single asset’s risk that is associated with random causes & can be eliminated

A

Diversifiable

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19
Q

Referred to as Non-market, unsystematic or firm-specific risk

A

Diversifiable Risk

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20
Q

Strikes, lawsuits, regulatory actions or the loss of a key account are attributable of

A

Diversifiable Risk

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21
Q

Referred to as Market or systematic risk

A

Nondiversifiable Risk

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22
Q

Market factors that affect all firms and cannon be eliminated through diversification is attributable of

A

Nondiversifiable Risk

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23
Q

Nondiversifiable risk is attributable to factors such as

A

War, inflation, international incidents and political events

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24
Q

What is the only relevant risk is

A

Non-diversifiable Risk

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25
Q

The biggest component of GDP using the expenditure approach is:

A

The household sector

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26
Q

Personal income after taxes is called

A

Disposable Personal Income

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27
Q

The biggest component of GDP using the income approach is

A

Wages

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28
Q

Govt’s imposed maximum price that may be charged for a good or service, which leads to shortage

A

Price Ceiling

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29
Q

Govt’s imposed minimum price that may be charged for a good or service, which leads to surplus

A

Price Floor

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30
Q

Shortage occurs when

A

Qty demanded is > Qty Supplied

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31
Q

What determine weather a good is normal or inferior

A

Income

32
Q

Equilibrium occurs when

A

Qty Demanded = Qty Supplied

33
Q

CPI measures the costs of a market basket of specific goods commonly purchased by:

A

Consumer

34
Q

Prints money when the money supply appears low:

A

The Treasury

35
Q

Factors of production include:

A
  1. Land
  2. Labor
  3. Physical Capital
  4. Human Capital
  5. Entrepreneurship
36
Q

A nation tends to specialize in goods for which it has

A

A comparative Advantage

37
Q

Not consistent with full employment

A

Cyclical Unemployment

38
Q

If there is an increase in the resources available within an economy, the economy will be capable of :

A

Producing more goods and services

39
Q

When does cost leadership strategies fail:

A

Too much is focus on cutting costs of the current process

40
Q

What is the main advantage of a Graphical User Interface (GUI)?

A

It can eliminate the need for a user to learn a complex set of commands

41
Q

Which of the following definitions best describes a hot site?

A

An alternate site with a commercial disaster recovery service that allows the organization to continue business operations

42
Q

Can not be traced directly to the final product.

A

Manufacturing overhead

43
Q

When income rises consumers buy less of

A

An inferior Good

44
Q

The control environment is one of the five components of internal control. How is the control environment identified within those five components?

A

The foundation of all other components

45
Q

Refers to a specific level or range of variation that is acceptable in reaching particular objectives

A

Risk Tolerance

46
Q

The CPU contains

A

primary storage, a control unit and an arithmetic/logic unit.

47
Q

William J. Bryan is looking at a demand curve for widgets. In the study of economics, what does this demand curve represent?

A

The change in the quantity of widgets purchased as the price of widgets changes.

48
Q

The function of the BUS is to:

A

the circuitry connecting the CPU to the primary memory and to peripheral devices. -

49
Q

In computing its predetermined overhead rate, Minor Company included its factory insurance cost twice. This error will result in:

A

The Cost of Goods Manufactured to be overstated.

50
Q

The function of input/output devices is to

A

Transfer data in and out of the CPU

51
Q

What are some examples of input/output:

A
  1. keyboard 2.monitor 3.scanner
  2. printer 5.mouse 6.modem
  3. joystick 8.touchpad
52
Q

Management compensation and performance s/b align with

A

maximizing long-term value for shareholders.

53
Q

The Operator is responsible for

A

the daily computer operations of both the hardware and software

54
Q

Country A can produce 10 units of Y or 20 units of X. Country B can produce 30 units of Y or 90 units of X. What can be said about this Scenario?

A

Country A has a comparative advantage in Y and Country B has a comparative advantage in X.

55
Q

A comparative advantage occurs

A

when a product can be produced cheaper

56
Q

Budget variance analysis based on standard unit costs is

A

Actual costs are compared with standard unit costs based on actual production are used to determine variances.

57
Q

Process improvement initiatives should be aligned with

A
  1. needs of the firm’s customers
  2. embraced and communicated by management 3.implemented through training and testing
  3. should fit the firm’s operations and organizational culture.
58
Q

Connie Roberts is a production line manager. Which of the following variances would be controllable by Connie?

A
  1. Overhead efficiency variance
  2. Labor efficiency variance
  3. Material usage variance
59
Q

Three types of system documentation used by auditors and analysts are:

A
  1. Data Flow Diagrams, 2.System Flowcharts

3. Entity Relationship Diagrams

60
Q

Amount of a good supplied change from something other than the price of the good

A

Change in Supply(Supply Change 1st)

61
Q

Change is supply will cause:

A

S ↑ P ↓ and/or S↓ P↑

62
Q

A change in the amount produces are willing & able to produce resulting solely from change in price

A

Change in Qty Supplied

P↑ S↑ and/or P↓ S↓

63
Q

Factors that shift supply curves

A

E.C.O.S.T
E- change in EXPECTATIONS of the supplying firm
C- change in production COSTS
O- change in the price or
demand for other GOODS
S- change in SUBSIDIES increase or taxes
T-change in production TECHNOLOGY

64
Q

Monetary policy decisions are made by:

A

F.O.M.C

Federal Open Market Committee

65
Q

Effects of a change in supply on equilibrium

A

S ↑ P ↓ Qty ↑

66
Q

Effects of a change in demand on equilibrium

A

D↑ P↑ Qty↑

67
Q

What are the two ways price elasticity of demand can be measured?

A
  1. Point Method

2. Mid Point Method

68
Q

In Perfect(Pure) Competition

A

“Many” firms in the industry
Size of firm is “small” relative to industry
Barriers to entry: None
Differentiation of Product: None( all firms sell the same commodity product)

69
Q

Stragetic plans may include maintaining the market share and responsiveness of sales price to make conditions

A

Perfect(Pure)Competition

70
Q

Stragetic plan maintaining the market share likely include a plan for enhanced product differentiation and extensive allocation of resources for advertising, marketing, product research

A

Monopolistic Competition

71
Q

Focus on market share and call for the proper amount of advertising and ways to properly adapt to price changes or required changes in production volume

A

Oligopoly

72
Q

Face a kinked demand curve

A

Oligopolists

73
Q

First suggested the idea of value chain analysis

A

Michael Porter

74
Q

According to Porter, what are the two major categories of business value activities:

A

Primary Activties

Support Activities

75
Q

Under Michael Porter, what are the 5 forces that affect the competitive environment and profitability of the firm

A
  1. Barriers to Entry
  2. Market Competitiveness
  3. Existence of substitute products
  4. Bargaining power of the customers
  5. Bargaining power of the supplies
76
Q

The most common approach in use to the application of overhead is: -

A

Expected annual capacity

BEC CPA Exam (6 decks)

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