ACC 576 Final Exam Study\tQuestion\u00a01\u00a0(IFTC-0112) \ufffd\u00a0\u00a0\u00a0\u00a0\tControls in the information technology area are classified into the preventive, detective, and corrective categories.\u00a0 Which of the following is a preventive control?\tQuestion\u00a02\u00a0(IFTC-0082) \ufffd\u00a0\u00a0\u00a0\u00a0\tAn organization relied heavily on e-commerce for its transactions.\u00a0 Evidence of the organization’s security awareness manual would be an example of which of the following types of controls?\tQuestion\u00a03\u00a0(IFTC-0067)\tWhich of the following types of control plans is particular to a specific process or subsystem, rather than related to the timing of its occurrence?\tQuestion\u00a04\u00a0(CGIC-0032)\tWhich of the following is true about the Sarbanes-Oxley requirements regarding the audit committee financial expert?\tQuestion\u00a05\u00a0(CGIC-0026)\tWhich of the following is not a component of COSO’s enterprise risk management framework?\tQuestion\u00a06\u00a0(CGIC-0010)\tWhich of the following is\u00a0not\u00a0required by the Sarbanes-Oxley Act of 2002?\tQuestion\u00a07\u00a0(CGIC-0025)\tWhich of the following is not an advantage of the employment of an enterprise risk management (ERM) system?\tQuestion\u00a08\u00a0(CGIC-0008)\tA financial statement audit performed under the requirements of the Sarbanes-Oxley Act of 2002 must include an examination and report upon\tQuestion\u00a09\u00a0(CGIC-0024)\tAn important benefit of an enterprise risk management system is\tQuestion\u00a010\u00a0(CGIC-0023) \ufffd\u00a0\tWhich of the following bodies has developed a framework for enterprise risk management?\tQuestion\u00a011\u00a0(CGIC-0005) \ufffd\u00a0\tWhich of the following executives of an issuer corporation must certify to the accuracy and truthfulness of financial reports filed with the SEC?\tQuestion\u00a012\u00a0(CGIC-0004) \ufffd\u00a0\tWhich of the following is not a responsibility that should be assigned to the audit committee of the board of directors?\tQuestion\u00a013\u00a0(CGIC-0018) \ufffd\u00a0\tWhich of the following components of internal control are characterized by ongoing activities and separate evaluations?\tQuestion\u00a014\u00a0(CGIC-0003) \ufffd\u00a0\tWhich of the following can be the most effective monitoring device for effective corporate governance?\tQuestion\u00a015\u00a0(CGIC-0002) \ufffd \ufffd \ufffd\u00a0\u00a0\u00a0\tFrom a corporate governance standpoint which of the following best describes the main goal of a form of executive compensation?\tQuestion\u00a016\u00a0(CGIC-0019) \ufffd\u00a0\tWhich of the following components of internal control encompass policies and procedures that ensure that management’s directives are carried out?\tQuestion\u00a017\u00a0(CGIC-0001) \ufffd\u00a0\tWhich of the following forms of compensation is more likely to result in shirking by management?\tQuestion\u00a018\u00a0(CGIC-0036) \ufffd\u00a0\tIn the COSO framework, individuals within the company that monitor internal controls are referred to as\tQuestion\u00a019\u00a0(CGIC-0016) \ufffd\u00a0\tThe COSO definition of internal control considers control activities a(n):\tQuestion\u00a020\u00a0(CGIC-0021) \ufffd\u00a0\tIf internal control is properly designed, the same employee should not be permitted to\tQuestion\u00a01\u00a0(ECON-0036) \ufffd\u00a0\u00a0 \ufffd \ufffd\u00a0\tIf a government were to use only fiscal policy to stimulate the economy from a recession, it would\tQuestion\u00a02\u00a0(ECON-0056) \ufffd\u00a0\u00a0 \ufffd \ufffd\u00a0\tDisposable income is calculated as\tQuestion\u00a03\u00a0(ECON-0003) \ufffd\u00a0\u00a0 \ufffd \ufffd\u00a0\tWhich of the following changes would create pressure for the Japanese yen to appreciate relative to the U.S. dollar?\tQuestion\u00a04\u00a0(ECON-0021) \ufffd\u00a0\u00a0 \ufffd \ufffd\u00a0\tIf a group of consumers decide to boycott a particular product, the expected result would be\tQuestion\u00a05\u00a0(ECON-0020) \ufffd\u00a0\u00a0 \ufffd \ufffd\u00a0\tThe movement along the demand curve from one price-quantity combination to another is called a(n)\tQuestion\u00a06\u00a0(ECON-0030) \ufffd\u00a0\u00a0 \ufffd \ufffd\u00a0\tIn the long run, a firm may experience increasing returns due to\tQuestion\u00a07\u00a0(ECON-0017) \ufffd\u00a0\u00a0 \ufffd \ufffd\u00a0\tWhich of the following is not accurate about product differentiation?\tQuestion\u00a08\u00a0(ECON-0063) \ufffd\u00a0\u00a0 \ufffd \ufffd\u00a0\tWhich of the following segments of the economy will be\u00a0least\u00a0affected by the business cycle?\tQuestion\u00a09\u00a0(ECON-0069) \ufffd\u00a0\u00a0 \ufffd \ufffd\u00a0\tWhat is the effect when a foreign competitor’s currency becomes weaker compared to the U.S. dollar?\tQuestion\u00a010\u00a0(ECON-0046) \ufffd \ufffd \ufffd\u00a0\tSome economic indicators lead the economy into a recovery or recession, and some lag it. An example of a lag variable would be\tQuestion\u00a011\u00a0(ECON-0002) \ufffd \ufffd \ufffd\u00a0\tIf the U.S. dollar declines in value relative to the currencies of many of its trading partners, the likely result is that\tQuestion\u00a012\u00a0(ECON-0055) \ufffd \ufffd \ufffd\u00a0\tThe rate of unemployment caused by changes in the composition of employment opportunities over time is referred to as the\tQuestion\u00a013\u00a0(ECON-0060) \ufffd \ufffd \ufffd\u00a0\tTo address the problem of a recession, the Federal Reserve Bank most likely would take which of the following actions?\tQuestion\u00a014\u00a0(ECON-0040) \ufffd \ufffd \ufffd\u00a0\tWhich of the following is a direct effect of imposing a protective tariff on an imported product?\tQuestion\u00a015\u00a0(ECON-0077) \ufffd \ufffd \ufffd\u00a0\tWhat does the consumer price index measure?\tQuestion\u00a016\u00a0(ECON-0037) \ufffd \ufffd \ufffd\u00a0\tThe discount rate of the Federal Reserve System is\tQuestion\u00a017\u00a0(ECON-0073) \ufffd \ufffd \ufffd\u00a0\tWhich of the following individuals would be most hurt by an unanticipated increase in inflation?\tQuestion\u00a01\u00a0(FINM-0082) \ufffd\u00a0\u00a0\u00a0 \ufffd \ufffd\u00a0\tWhich of the following statements is correct regarding the weighted-average cost of capital (WACC)?\tQuestion 2 (FINM-0066)\tThe benefits of debt financing over equity financing are likely to be highest in which of the following situations?\tQuestion 3 (RMCB-0027)\tWhich of the following describes an option?\tQuestion 4 (FINM-0034)\tA company has $1,500,000 of outstanding debt and $1,000,000 of outstanding common equity. Management plans to maintain the same proportions of financing from each source if additional projects are undertaken. If the company expects to have $60,000 of retained earnings available for reinvestment in new projects in the coming year, what dollar amount of new investments can be undertaken without issuing new equity?\t \ufffd \ufffd\u00a0 Value of equity \ufffd \ufffd\u00a0\u00a0\tValue of debt + Value of equity\tSince the question states that the firm will maintain the same weight of each financing source, each dollar invested is composed of 40 cents of equity and 60 cents of debt. The first $60,000 of equity used in financing new projects is sourced from retained earnings.\u00a0 This source of equity is exhausted when the firm reaches an investment level of\t$60,000 \/ .4 = $150,000.When the level of investment exceeds this amount, equity financing must be raised externally.\tQuestion 5 (FINM-0024)\tDQZ Telecom is considering a project for the coming year that will cost $50,000,000.\u00a0 DQZ plans to use the following combination of debt and equity to finance the investment:\tQuestion 6 (RMCB-0026)\tWhich of the following describes a normal yield curve?\tQuestion 7 (FINM-0073)\tWhich of the following types of bonds is most likely to maintain a constant market value?\tQuestion 8 (RMCB-0058)\tWhich of the following is an advantage of net present value modeling?\tQuestion 9 (RMCB-0057)\tThe calculation of depreciation is used in the determination of the net present value of an investment for which of the following reasons?\tQuestion 10 (RMCB-0051)\tNet present value as used in investment decision-making is stated in terms of which of the following options?\tQuestion 11 (RMCB-0020)\tEssex Corporation is evaluating a lease that takes effect on March 1, 2012. The company must make eight equal payments, with the first payment due on March 1, 2012. The concept most relevant to the evaluation of the lease is\tQuestion 12 (RMCB-0043)\tOn January 1, 2012, Colt Company issued 10-year bonds with a face amount of $1,000,000 and a stated interest rate of 8% payable annually on January 1. The bonds were priced to yield 10%. Present value factors are as follows:\t\u00a0Present value of 1 for 10 periods\tPresent value of an ordinary annuity of 1 for 10 periods\tThe total issue price (rounded) of the bonds was\tQuestion 13 (FINM-0001)\tNet working capital is the difference between\tQuestion 14 (RMCB-0041)\tAssume that management of Trayco has generated the following data about an investment project that has a five-year life:\tInitial investment\tAdditional investment in working capital\tCash flows before income taxes for years 1 through 5\tYearly depreciation for tax purposes\tTerminal value of machine\tCost of capital\tPresent value of $1 received after 5 years discounted at 8%\tPresent value of an ordinary annuity of $1 for 5 years at 8%\tAssume that Trayco’s marginal tax rate is 30% and all cash flows come at the end of the year. Calculate the net present value of the investment of the project.\tQuestion 15 (FINM-0014)\tWhich one of the following statements correctly compares bond financing alternatives?\tQuestion 16 (RMCB-0056)\tA client wants to know how many years it will take before the accumulated cash flows from an investment exceed the initial investment, without taking the time value of money into account.\u00a0 Which of the following financial models should be used?\tQuestion 17 (RMCB-0049)\tHarvey Co. is evaluating a capital investment proposal for a new machine.\u00a0 The investment proposal shows the following information:\tInitial cost\tLife\tAnnual net cash inflows\tSalvage value\tIf acquired, the machine will be depreciated using the straight-line method.\u00a0 The payback period for this investment is\tQuestion 18 (RMCB-0054)\tWhich of the following statements is correct regarding financial decision making?\tQuestion 19 (RMCB-0052)\tWhich of the following formulas should be used to calculate the economic rate of return on common stock?\tQuestion 20 (FINM-0054)\tAll of the following are features of just-in-time (JIT) systems except\tQuestion 1 (IFTC-0054)\tBecause log-on procedures may be cumbersome and tedious, users often store log-on sequences in their personal computers and invoke them when they want to use mainframe facilities.\u00a0 A risk of this practice is that\tQuestion 2 (IFTC-0035)\tEmployee numbers have all numeric characters.\u00a0 To prevent the input of alphabetic characters, what technique should be used?\tQuestion 3 (IFTC-0051)\tAn organization’s computer help desk function is usually a responsibility of the\tQuestion 4 (IFTC-0022)\tFirst Federal S&L has an online real-time system, with terminals installed in all of its branches. This system will not accept a customer’s cash withdrawal instructions in excess of $1,000 without the use of a “terminal audit key.” After the transaction is authorized by a supervisor, the bank teller then processes the transaction with the audit key. This control can be strengthened by\tQuestion 5 (IFTC-0043)\tA brokerage firm has changed a program so as to permit higher transaction volumes. After proper testing of the change, the revised programs were authorized and copied to the production library.\u00a0 This practice is an example of\tQuestion 6 (IFTC-0023)\tIn a daily computer run to update checking account balances and print out basic details on any customer’s account that was overdrawn, the overdrawn account of the computer programmer was never printed. Which of the following control procedures would have been most effective in detecting this fraud?\tQuestion 7 (IFTC-0088)\tIn which of the following locations should a copy of the accounting system data backup of year-end information be stored?\tQuestion 8 (IFTC-0018)\tA computer input control is designed to ensure that\tQuestion 9 (IFTC-0002)\tWhich of the following would lessen internal control in a computer processing system?\tQuestion 10 (IFTC-0103)\tA value-added network (VAN) is a privately owned network that performs which of the following functions?\tQuestion 11 (IFTC-0102)\tWhich of the following is usually a benefit of using electronic funds transfer for international cash transactions?\tQuestion 12 (IFTC-0030)\tThe machine language for a specific computer\tQuestion 13 (IFTC-0049)\tSecuring client\/server systems is a complex task because of all of the following factors except:\tQuestion 14 (IFTC-0028)\tA data warehouse in an example of\tQuestion 15 (IFTC-0078)\tCompared to batch processing, real-time processing has which of the following advantages?\tQuestion 16 (IFTC-0032)\tWhich of the following is not a characteristic of a batch processed computer system?\tQuestion 17 (IFTC-0072)\tWhich of the following is an advantage of a computer-based system for transaction processing over a manual system? A computer-based system\tQuestion 18 (IFTC-0131)\tWhen a client’s accounts payable computer system was relocated, the administrator provided support through a dial-up connection to a server.\u00a0 Subsequently, the administrator left the company.\u00a0 No changes were made to the accounts payable system at that time.\u00a0 Which of the following situations represents the greatest security risk?\tQuestion 19 (IFTC-0114)\tIn a large multinational organization, which of the following job responsibilities should be assigned to the network administrator?\tQuestion 20 (IFTC-0055)\tToday organizations are using microcomputers for data presentation because microcomputer use, compared to mainframe use, is more\tQuestion 1 (COST-0056)\tThe following is selected information from the records of Ray, Inc.:\tPurchases of raw materials\tRaw materials, beginning\tRaw materials, ending\tWork-in-process, beginning\tWork-in-process, ending\tCost of goods sold\tFinished goods, beginning\tFinished goods, ending\tWhat is the total amount of conversion costs?\tQuestion 2 (PLAN-0049)\tA defense contractor for a government space project has incurred $2,500,000 in actual design costs to date for a guidance system whose total budgeted design cost is $3,000,000. If the design phase of the project is 60% complete, what is the amount of the contractor’s current overrun\/savings on this design work?\tQuestion 3 (COST-0044)\tA company with three products classifies its costs as belonging to five functions: design, production, marketing, distribution, and customer services. For pricing purposes, all company costs are assigned to the three products. The direct costs of each of the five functions are traced directly to the three products. The indirect costs of each of the five business functions are collected into five separate cost pools and then assigned to the three products using appropriate allocation bases. The allocation base that would most likely be the best for allocating the indirect costs of the distribution function is\tQuestion 4 (COST-0051)\tWhich of the following is assigned to goods that were either purchased or manufactured for resale?\tQuestion 5 (PLAN-0045)\tA company manufactures a product that has the direct material standard cost presented below. Budgeted and actual information for the current month for the manufacture of the finished product and the purchase and use of the direct material are also presented.Standard cost for direct material1.60 lb. @ $2.50 per lb. = $4.00\t\u00a0\tFinished goods (in units)\tDirect material usage (in pounds)\tDirect material purchases (in pounds)\tTotal cost of direct material purchases\tThe direct material price variance for the current month is\tQuestion 6 (PLAN-0041)\tA favorable material price variance coupled with an unfavorable material usage variance would most likely result from\tQuestion 7 (PERM-0001)\tA strategy map in the balanced scorecard framework is\tQuestion 8 (PLAN-0035)\tComparing actual results with a budget based on achieved volume is possible with the use of a\tQuestion 9 (PLAN-0032)\tThe cash receipts budget includes\tQuestion 10 (COST-0043)\tA company is attempting to determine if there is a cause and effect relationship between scrap value and output produced. The following exhibit presents the company’s scrap data for the last fiscal year:\tScrap Value as a Percent of Standard Dollar Value of Output Produced\tMonth\tNov. 11\tDec. 11\tJan. 12\tFeb. 12\tMar. 12\tApr. 12\tMay-12\tJun. 12\tJul. 12\tAug. 12\tSep. 12\tOct. 12\tBased on the above data, the company’s scrap value in relation to the standard dollar value of output produced appears to be\tQuestion 11 (PLAN-0013)\tIn preparing its cash budget for July 2012, Reed Company made the following projections:\tSales\tGross profit (based on sales)\tDecrease in inventories\tDecrease in accounts payable for inventories\tFor July 2012 what were the estimated cash disbursements for inventories?\tQuestion 12 (PERM-0022)\tThe following selected data is for the Consumer Products Division of Gerriod Corp.\tSales\tAverage invested capital (total assets)\tNet operating profit\tCost of capital\tCalculate the spread between the return on investment and the required rate of return for the Consumer Products Division.\tQuestion 13 (RMCB-0001)\tA company is considering exchanging an old asset for a new asset. Ignoring income tax considerations, which of the following is economically relevant to the decision?\tQuestion 14 (PLAN-0105)\tCarter Co. paid $1,000,000 for land three years ago.\u00a0 Carter estimates it can sell the land for $1,200,000, net of selling costs.\u00a0 If the land is not sold, Carter plans to develop the land at a cost of $1,500,000.\u00a0 Carter estimates net cash flow from the development in the first year of operations would be $500,000.\u00a0 What is Carter’s opportunity cost of the development?\tQuestion 15 (PERM-0012)\tIn the cost of quality, liability claims are examples of\tQuestion 16 (PERM-0019)\tThe following selected data is for the Consumer Products Division of Gerriod Corp.\tSales\tAverage invested capital (total assets)\tNet operating profit\tCost of capital\tCalculate the asset turnover ratio for the Consumer Products Division.\tQuestion 17 (PLAN-0106)\tA company that produces 10,000 units has fixed costs of $300,000, variable costs of $50 per unit, and a sales price of $85 per unit.\u00a0 After learning that its variable costs will increase by 20%, the company is considering an increase in production to 12,000 units.\u00a0 Which of the following statements is correct regarding the company’s next steps?\tQuestion 18 (PLAN-0087)\tWhich of the following listings correctly describes the order in which the four types of budgets must be prepared?\tQuestion 19 (PLAN-0048)\tAll else being equal, the breakeven point in units will be higher if\tQuestion 20 (PLAN-0091)\tRelevant information for material A follows:\tQuantity purchased\tStandard quantity allowed\tActual price\tStandard price\tWhat was the direct material price variance for material A?<\/p>\n","protected":false},"excerpt":{"rendered":"
ACC 576 Final Exam Study Question\u00a01\u00a0(IFTC-0112) \ufffd\u00a0\u00a0\u00a0\u00a0 Controls in the information technology area are classified into the preventive, detective, and corrective categories.\u00a0 Which of the following is a preventive control? Question\u00a02\u00a0(IFTC-0082) \ufffd\u00a0\u00a0\u00a0\u00a0 An organization relied heavily on e-commerce for its Read More …<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-200616","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts\/200616","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/comments?post=200616"}],"version-history":[{"count":0,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts\/200616\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/media?parent=200616"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/categories?post=200616"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/tags?post=200616"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}