Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

Yaegar BEC > Exam 2 > Flashcards

Exam 2 Flashcards

1
Q

Audits are…

A

Detective activities

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

Required vacations are…

A

Detective activities

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

Separation of duties are…

A

Preventative activities

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

Background investigations are…

A

Detective activities

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

Use of passwords are…

A

Preventative activities

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

Required authorizations are…

A

Preventative activities

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

Rotation of duties are…

A

Detective activities

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

Required approvals are…

A

Preventative activities

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

Alarm systems are…

A

Preventative activities

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

Use of locks are…

A

Preventative activities

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

Variance analysis are…

A

Detective activities

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

Reconciliations are…

A

Detective activities

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

Security guards and cameras are…

A

Preventative activities

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

Educations, training and monitoring of employees are…

A

Preventative activities

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

Physical inventories are…

A

Detective activities

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

Which of the following does not support business process management?

A

Systems

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

Business process management is supported by…3

A

1 approaches

2 techniques

3 measures

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

An example of a detective control activity would be…

A

Reconciliations

19
Q

In relation to the internal control process, control sufficiency is…

A

Group of controls with a variety of degrees of precision necessary to achieve control objective

20
Q

Control precision 2

A

1 Alignment between risk and control activity

2 designed to mitigate risk

21
Q

Control sufficiency 2

A

1 group of controls with variety of degrees of precision

2 necessary to achieve control objective

22
Q

When production levels increase but stay in the relevant range,
What happens to total fixed costs?

2) Total fixed costs per unit?

A

Total fixed costs remain unchanged

2 total fixed costs per unit stay the same

23
Q

If after tax savings are $100,000 and depreciation is $50,000 per year, what is the before tax cash savings with a 40% tax rate?

A

$100,000 - $50,000 x 0.4 = $80,000

$80,000/0.6

24
Q

Technique for managing Just in time inventory developed by the Japanese?

A

Kanban

25
Q

Economic exposure, define, give example

A

Represents impact of exchange rate fluctuations on firm’s future cash flow

26
Q

Which of the following areas of responsibility are normally assigned to systems programmer in a computer systems environment?

A

Operating systems and compilers

27
Q

the best set of controls for a payroll system includes, batch and…

A

Hash totals

28
Q

the best set of controls for a payroll system includes record…

A

Record counts of each run

29
Q

the best set of controls for a payroll system includes proper…

A

Separation of duties

30
Q

the best set of controls for a payroll system includes passwords…

A

And user codes

31
Q

the best set of controls for a payroll system includes backup copies of…

A

Activities and master files

32
Q

COBIT applies to…

A

Information technology

33
Q

Expected market value when protected with frost 80,000
- expected market value when not protected with frost 40,000
Change in EMV when protected from frost. 40,000

What is the probability to being indifferent to spending $10,000 for frost protection?

A

Cost of protection = probability if frost x change in EMV

probability of frost = 10,000/40,000

34
Q

Check digit is an example of…

A

An input control

35
Q

Purchase of the firm’s treasury stock increases…

A

A firm’s financial leverage

36
Q

Treating dividends as an active policy strategy assumes that…

A

Dividends provide information to the market

37
Q

The method that should be used to estimate a unique product is…

A

Learning curve analysis

38
Q

What kind of inflation occurs when cost of production inputs such as materials or labor increase?

A

Cost push inflation

39
Q

In event of a flood near a data center employees may…

A

Not be able to report to work

40
Q

If one country has a 20% tax rate and another has a 40% tax rate, a multinational corporation should have the highest transfer price set in…

A

The country with the 20% tax rate

41
Q

Calculate overhead applied and overhead rate equations?

A

Overhead rate =
estimated annual overhead/estimated annual direct labor

Applied overhead = overhead rate x estimated annual direct labor

42
Q

Management reporting systems rely on…

A

Both internally and externally reported data

43
Q

Margin of safety equation

A

Margin of safety = budgeted sales - break even sales

44
Q

The working capital financing policy that subjects the firm to the greatest risk of being unable to meet the firm’s maturing obligations is the policy that finances…

A

Permanent current assets with short term debt

Yaegar BEC (30 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions