BEC Essetials

Question 1

Calculate cost of common equity

Answer 1

Cost of common equity is the rate of return currently expected by potential investors.

Common Stock Expected Return = (Dividend in 1st Year / Market Price) + Growth Rate

Question 2

What term identifies the type of internal auditing standards used to describe the characteristics associated with organizations and individuals who provide internal audit services?

Answer 2

Attribute Standards address the characteristics (“attributes”) of organizations and individuals performing internal audit services.

Question 3

Headers

Answer 3

used to identify data records in an accounting system file

Question 4

IT Facility Controls are

Answer 4

General

as opposed to detective, corrective, preventive

Question 5

The following customer data is stored in the sales processing system to a regional produce distributor:

CustomerNumber, CustomerName, CustomerPhone, CustomerContact, CustomerCreditLimit

CustomerNumber is an example of a

Answer 5

Field (or attribute)

The entire list of fields is a record

Question 6

Record

Answer 6

A collection of fields that describe an individual instance of an entity

Question 7

Example of a general control for a computerized system

Answer 7

Restricting access to the computer center

Question 8

Average propensity to consume

Answer 8

percentage of disposable income spent on consumable goods

Question 9

Elasticity of Demand

Answer 9

Measures percent change in quantity of a commodity demanded as a result of a given percent change in price

Elastic means the % change in Q is > % change in P

elasticity coefficient > 1

Question 10

Compute the Profitability Index

Answer 10

NPV / Project Cost