BEC CPA 7 Flashcards
Which activity would most likely detect computer-related fraud?
Reviewing the systems-access log
Which types of analytics are described by activities such as continuous monitoring, auditing, and reporting?
Risk and compliance analytics
Cost of inventory to purchase in a month equation?
Estimated cost of sales
Less: Beg. cost of sales
Plus: End. cost of sales
When the supply and demand of a good both increase, then the equilibrium price:
May increase, decrease or remain unchange3d
Under ABC, the allocation of costs to particular cost objectives allows a firm to analyze:
- Whether a product line should be discontinued
- Whether a particular department should be expanded
- Whether a particular manager earns a bonus
What strategy would the federal reserve most likely pursue under an expansionary policy
Purchase federal securities and lower the discount rate
An enterprise resource planning system is designed to:
integrate data from all aspects of an organization’s activities
The degree to which a firm uses fixed operating costs, as opposed to variable operating costs to defined as:
Operating leverage
The margin of safety is:
the difference between current sales and breakeven sales
Breakeven sales = fixed costs / (CM / sales)
sales - breakeven sales
What type of system is concerned with what goods were ordered, when and where the goods were to be delivered, and what the amount paid is?
Supply chain management system
The trough of a business cycle is generally characterized by:
Unused productive capacity and an unwillingness to risk investment
An enterprise resource planning system is designed to:
Integrate data from all aspects of an organization’s activities
Any business firm that has the ability to control the price of the product it sells:
Faces a downward-sloping demand curve
Leading vs lagging indicators vs Coincident economic indicators
Leading - predict economic activity, and change before econ trends. money supply, S&P 500 index, building permits, average new unemployment claims
Lagging - follow economic activity and change after econ trend. Average duration of unemployment, prime rates charged by banks, consumer debt-to-income ratio
Coincident - change same time as econ. policies and trends. GDP, manufacturing and trade sales
