Bender Day 7 Flashcards

1
Q

Equation: Market Capitalization

A

Equals the number of Common shares outstanding multiplied by the FMV

MCQ-08753

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2
Q

When are the benefits of debt financing over equity financing the highest?

A

When there are high marginal tax rates and few non interest tax benefits

MCQ-05256

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3
Q

Under the balanced scorecard, employee satisfaction and retention are measures under which perspective?

A

Learning and growth

MCQ-04811

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4
Q

What is true about WACC?

A

One of a company’s objectives is to minimize WACC

MCQ-06626

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5
Q

What type of relationship is a website selling goods online?

A

Business to Consumer

MCQ-14581

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6
Q

A company Retains a CPA with the appropriate knowledge and skills, to prepare timely and effective financial reports is applying what principal of IC?

A

Financial reporting competencies

MCQ-06483

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7
Q

Equation: Cost Of Equity

A

(Expected Div / Current Share Price) + Growth Rate

MCQ-07104

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8
Q

What are the 5 professional associates in COSO

A
  1. AICPA
  2. FEI
  3. AAA
  4. IIA
  5. IMA

MCQ-00466

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9
Q

The optimal Capitalization for an organization can be determined by:

A

The lowest total WACC

MCQ-05566

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10
Q

Company’s that adopt JIT purchasing systems often experience

A

A reduction in the number of suppliers

MCQ-03550

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11
Q

There are a variety of methods of classifying costs as fixed or variable. The most accurate method is:

A

The regression analysis method

MCQ-03932

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12
Q

When the demand for a good is Inelastic, a decrease in price has what effect on the number of units sold and total revenue?

A

The percentage change in price will be greater than the percentage change in quantity, and total revenue will fall

MCQ-12452

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13
Q

What costs are inversely related?

A

Preventative maintenance costs and Rework Costs

MCQ-06785

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14
Q

In a regression analysis, the coefficient of determination measures:

A

Goodness of fit

MCQ-04344

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15
Q

Performance of quality assurance occurs in which of the following processes?

A

Implementation

MCQ-06488

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16
Q

What is not a benefit of implementing JIT management strategy?

A

Variability increases

MCQ-06792