Review Wrong Answers Flashcards
What is not a principle of COBIT 5?
Business processes
On a flow chart what would branch off of a sales transaction file and a cash receipts transaction file?
Accounts receivable master file
A decrease in the price of a complementary good will shift the demand curve of a…
Joint commodity to the right
The 2nd generation language that is usually specific to a computer architecture is…
Assembly language
When calculating net present value, salvage value is…
Not subject to tax
When calculating net present value, when there is additional investment in working capital…2
1 working capital is added to salvage value and multiplied by
PV
2 full amount of working capital is also subtracted
A firm with a lower percentage of debt does not have…
Greater financial leverage than a firm with a higher debt capital structure
Calculate the current net cost of debt when the current risk free rate is 7% and can issue debt at 250 basis points over US treasury bonds?
Tax rate is 30%
(7 + 2.5) x 0.7
How do you allocate under applied inventory of $40,000 to COGS when COGS = $700,000
WIP = $40,000
Finished Goods = 50,000
$40,000 x ($700,000/(40,000 + 50,000 + 700,000))
When actual overhead exceeds projected overhead, overhead is…
Underapplied
Which of the following procedures should be included in the disaster recovery plan for an Information Technology department?
Identification of critical applications
Value added network is a privately owned network that routes EDI transactions and alleviates problems related to…
Differences between Organization’s hardware and software
What is an advantage of using a value added network for EDI transactions?
Ability to deal with differing data protocols
Purchases equation
Purchases =
Cost of goods sold + ending inventory - beginning inventory
Cash disbursements calculation, when payments are made the month after. Beginning balance A/P = $30,000
Purchases = 315,000
Cash disbursements = beg. Bal. A/P. + (purchases x 11/12)
30,000. +. $315,000 x 11/12
