CPA BEC Test 1

A

A company sells 1,500 units of a particular item each year and orders the items in equal quantities of 500 units at a price of $5 per unit. No safety stocks are held. If the company has a cost of capital of 12%, its annual cost of carrying inventory is A. $150 B. $180 C. $300 D. $900

B

Accounting for factory overhead costs involves averaging in Job-order costing---------------Process costing A. Yes------------------------------------No B. Yes------------------------------------Yes C. No-------------------------------------Yes D. No-------------------------------------No

B

A company employs a process costing system for its two-department manufacturing operation using the first-in-first-out (FIFO) inventory method. When units are completed in department 1, they are transferred to department 2 for completion. Inspection takes place in department 2 immediately before the direct materials are added, when the process is 70% complete with respect to conversion. The specific identification method is used to account for lost units. Generally the number of defective units (that is, those failing inspection) is below the normal tolerance limit of 4% of units inspected. Defective units have minimal value, and the company sells them without any further processing for whatever it can. Generally the amount collected equals, or slightly exceeds, the transportation cost. A summary of the manufacturing activity for department 2, in units for the current month, is presented below. ------------------------------------- Physical flow -------------------------------------(output units) Beginning inventory (60% complete with respect to conversion) ------------------------------------------------------20,000 Units transferred in from department 1--- 180,000 Total units to account for -----------------200,000 Units completed in department 2 during the month -----------------------------------------------170,000 Units found to be defective at inspection------------------------------------------------------------5,000 Ending inventory (80% complete with respect to conversion) -------------------------------------------------------25,000 Total units accounted for------------------ 200,000 The units that failed inspection during the current month would be classified as A. Abnormal spoilage. B. Normal scrap. C. Normal reworked units. D. Abnormal waste.

D

A company enters into an agreement with a firm who will factor the company's accounts receivable. The factor agrees to buy the company's receivables, which average $100,000 per month and have an average collection period of 30 days. The factor will advance up to 80% of the face value of receivables at an annual rate of 10% and charge a fee of 2% on all receivables purchased. The controller of the company estimates that the company would save $18,000 in collection expenses over the year. Fees and interest are not deducted in advance. Assuming a 360-day year, what is the cost of engaging in this arrangement? (This question is CMA adapted) A. 11.0% B. 14.0% C. 16.0% D. 17.5%

D

A company has a significant e-commerce presence and self-hosts its website. To assure continuity in the event of a natural disaster, the firm should adopt which of the following strategies? A. Back up the server database daily. B. Store records off-site. C. Purchase and implement RAID technology. D. Establish off-site mirrored Web server.

C

A 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? Original cost of old asset----------------------------------------------------Fair market value of old asset A. Yes------------------------------------Yes B. Yes------------------------------------No C. No------------------------------------Yes D. No------------------------------------No

D

A company wants to determine its marketing costs for budgeting purposes. Activity measures and costs incurred for four months of the current year are presented in the table below. Advertising is considered to be a discretionary cost. Salespersons are paid monthly salaries plus commissions. The sales force was increased from 20 to 21 individuals during the month of May. Activity measures March-- April-- May-- June Sales orders ------2,000-- 1,800 ---2,400-- 2,300 Units sold ---55,000 ----60,000--- 70,000--- 65,000 Dollar sales--$1,150,00--$1,200,000--$1,330,000 ----------------------------------------------$1,275,000 Marketing costs Advertising-$190,000-$200,000-$190,000-$190,000 Sales salaries 20,000-- 20,000-- 21,000-- 21,000 Commissions 23,000-- 24,000-- 26,600-- 25,500 Shipping costs 93,000-- 100,000-- 114,000--107,000 Total costs $326,000-$344,000-$351,600-$343,500 In relation to the dollar amount of sales, which of the following cost classifications is appropriate for advertising and sales salaries costs? Advertising------------Sales salaries A. Mixed cost--------------Fixed cost B. Fixed cost--------------Variable cost C. Mixed cost---------------Mixed cost D. Fixed cost----------------Fixed cost

D

A company wants to determine its marketing costs for budgeting purposes. Activity measures and costs incurred for four months of the current year are presented in the table below. Advertising is considered to be a discretionary cost. Salespersons are paid monthly salaries plus commissions. The sales force was increased from 20 to 21 individuals during the month of May. Activity measures-- March--April---May--June Sales orders-------2,000----1,800---2,400----2,300 Units sold--------55,000--60,000--70,000--65,000 Dollar sales--$1,150,000--$1,200,000--$1,330,000------------------------------------------------$1,275,000 Marketing costs Advertising----$ 190,000--$ 200,000--$ 190,000--------------------------------------------------$ 190,000 Sales salaries----20,000----20,000---21,000--21,000 Commissions----23,000----24,000--26,600--25,500 Shipping costs--93,000--100,000--114,000--107,000 Total costs----$ 326,000--$ 344,000--$ 351,600-------------------------------------------------$ 343,500 In relation to the dollar amount of sales, which of the following cost classifications is appropriate for advertising and sales salaries costs? Advertising-------------------Sales salaries A. Mixed cost---------------------Fixed cost B. Fixed cost---------------------Variable cost C. Mixed cost---------------------Mixed cost D. Fixed cost----------------------Fixed cost

C

A customer's order was never filled because an order entry clerk transposed the customer identification number while entering the sales transaction into the system. Which of the following controls would most likely have detected the transposition? A. Sequence test. B. Completeness test. C. Validity check. D. Limit test.

A

A distributed processing environment would be most beneficial in which of the following situations? A. Large volumes of data are generated at many locations and fast access is required. B. Large volumes of data are generated centrally and fast access is not required. C. Small volumes of data are generated at many locations, fast access is required, and summaries of the data are needed promptly at a central site. D. Small volumes of data are generated centrally, fast access is required, and summaries are needed monthly at many locations.

A

A multinational company operates a production facility in country A and a distribution outlet in country B. The tax rates are 40% in country A and 50% in country B. The production facility sells the goods to the distribution outlet, both of which are wholly owned by the multinational company. The internal sale of goods occurs at a "transfer" price set by the multinational company. Assuming no nontax considerations and no interference from the tax authorities of the two countries, the company should A. Maximize the transfer price. B. Minimize the transfer price. C. Establish a transfer price that results in the same profit margin for both operations. D. Use a transfer price based on the market price for the product that other producers charge.

A

A zombie computer is used most frequently to perpetrate a _________ attack: A. DoS B. Man-in-the-middle C. Phishing D. Session

B

Accounting for factory overhead costs involves averaging in Job-order costing---------Process costing A. Yes------------------------------No B. Yes-------------------------------Yes C. No--------------------------------Yes D. No--------------------------------No

C

All of the following are true about international trade except that (This question is CMA adapted) A. The gains from international trade depend on specialization with comparative advantage. B. Absolute advantage without comparative advantage does not result in gains from international trade. C. Absolute advantage is defined as the ability of one nation to produce a product at a relatively lower opportunity cost than another nation. D. Where there is reciprocal absolute advantage between two countries, specialization will make it possible to produce more of each product.

A

Although only selected activities in the plan are stated below, which of the following states the correct order of activities for establishing a cybersecurity program? A. Identify and prioritize risks, create current profile, conduct risk assessment. B. Identify and prioritize risks, determine gaps, create target profile. C. Conduct detailed risk assessment, prioritize risks, determine gaps. D. Create target profile, create current profile, determine gaps.

C

An accountant at Hubert Humbert Fashion Designers is using a component of its organization-wide ERP system to prepare a payroll tax return. The accountant is most likely using the _________ component of the system. A. CRM B. OLAP C. OLTP D. Supply chain management

A

An expansionary [List A] policy will have [List B] effect on net exports. List A------------------List B A. Fiscal---------------A negative B. Fiscal-------------------no C. Monetary------------A negative D. Monetary--------------No

B

An information technology director collected the names and locations of key vendors, current hardware configuration, names of team members, and an alternative processing location. What is the director most likely preparing? A. Data restoration plan. B. Disaster recovery plan. C. System security policy. D. System hardware policy.

A

An oligopolist faces a "kinked" demand curve. This terminology indicates that (This question is CMA adapted) A. When an oligopolist lowers its price, the other firms in the oligopoly will match the price reduction, but if the oligopolist raises its price, the other firms will ignore the price change. B. An oligopolist faces a nonlinear demand for its product, and price changes will have little effect on demand for that product. C. An oligopolist can sell its product at any price, but after the "saturation point" another oligopolist will lower its price and, therefore, shift the demand curve to the left. D. Consumers have no effect on the demand curve, and an oligopolist can shape the curve to optimize its own efficiency.

C

An organization's computer help desk function is usually a responsibility of the A. Applications development unit. B. Systems programming unit. C. Computer operations unit. D. User departments.

A

Assume that Company A and Company B are alike in all respects except that Company A utilizes more debt financing and less equity financing than does Company B. Which of the following statements is most likely to be true? A. Company A has more net earnings variability than Company B. B. Company A has more operating earnings variability than Company B. C. Company A has less operating earnings variability than Company B. D. Company A has less financial leverage than Company B.

B

At Multimedia Associates, there is some awareness of cybersecurity risks but not an organization-wide approach to managing these risks. In addition, the chief risk officer has assessed cybersecurity roles and risks but has not formalized these findings or shared them with critical stakeholders. Multimedia Associates evidences a ____________ implementation tier. A. Partial B. Risk-informed C. Repeatable D. Adaptable

A

Banner Electronics has subsidiaries in several international locations and is concerned about its exposure to foreign exchange risk. In countries where currency values are likely to fall, Banner should encourage all of the following except (This question is CMA adapted) A. Granting trade credit wherever possible. B. Investing excess cash in inventory or other real assets. C. Purchasing materials and supplies on a trade credit basis. D. Borrowing local currency funds if an appropriate interest rate can be obtained.

C

Based on the following data, what is the gross profit for the company? Sales ------------------------------$1,000,000 Net purchases of raw materials---- 600,000 Cost of goods manufactured -----------800,000 Marketing and administrative expenses 250,000 Indirect manufacturing costs -----------500,000 ----------------Beginning inventory----Ending ------------------------------------------------inventory Work in process $500,000-------- $400,000 Finished goods 100,000--------- 500,000 A. $200,000 B. $400,000 C. $600,000 D. $900,000

B

Catalonian Olive Oil Products runs an ERP system and conducts backup procedures that are _______, ______, and _______. A. Grandfather, father, and son B. Full, incremental, and differential C. Bin, volume, and name D. Checkpoint, recovery, restart

A

Companies can reduce the potential loss from host-government expropriation of their foreign subsidiaries by A. Financing the subsidiary with local-country capital. B. Structuring operations so that the subsidiary has value as a stand-alone company. C. Reducing the cost of capital to reflect political risk when assessing foreign investment opportunities. D. Selling products in the local country.

D

Comparing actual results with a budget based on achieved volume is possible with the use of a A. Monthly budget. B. Master budget. C. Rolling budget. D. Flexible budget.

D

Consider the following two descriptions: 1. They help an entity create and maintain reliable data. 2. They include models, policies, rules, or standards that determine which data is collected and how it is stored, arranged, integrated, and used in systems and in the organization. In relation to COSO's ERM framework related to leveraging information systems, statement 1 relates to ______________ while statement 2 relates to ____________________. A. data and information governance; processes and controls B. data and information governance; data management architecture C. processes and controls; data and information governance D. processes and controls; data management architecture

A

Credit Card International developed a management reporting software package that enables members interactively to query a data warehouse and drill down into transaction and trend information via various network set-ups. What type of management reporting system has Credit Card International developed? A. On-line analytical processing system. B. On-line transaction-processing system. C. On-line executive information system. D. On-line information storage system.

A

For purposes of allocating joint costs to joint products, the sales price at point of sale reduced by cost to complete after split-off is assumed to be equal to the A. Relative sales value at split-off. B. Sales price less a normal profit margin at point of sale. C. Joint costs. D. Total costs.

A

Freely fluctuating exchange rates perform which of the following functions? A. They automatically correct a lack of equilibrium in the balance of payments. B. They make imports cheaper and exports more expensive. C. They impose constraints on the domestic economy. D. They eliminate the need for foreign currency hedging.

D

GAPP stands for A. Governmentally accepted payment processes. B. Generally accepted accounting principles. C. General Administration of Press and Publication D. Generally accepted privacy principles

C

Greater barriers to collusion exist for oligopolistic firms when A. The firms' costs are more similar. B. There are fewer firms in the industry. C. General economic conditions are recessionary. D. The firms' products are standardized.

D

If a control total were to be computed on each of the following data items, which would best be identified as a hash total for a payroll application? A. Hours worked. B. Total debits and total credits. C. Net pay. D. Department numbers.

A

If an increase in government purchases of goods and services of $20 billion causes equilibrium GDP to rise by $80 billion, and if total taxes and investment are constant, the marginal propensity to consume out of disposable income is (This question is CMA adapted) A. 0.75 B. 0.25 C. 1.25 D. 4.00

C

If an investment is expected to be held for a long period of time the preferred method of calculating the expected return is A. Arithmetic average. B. Median. C. Geometric average. D. Subjective estimate.

D

In 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? A. Use of the test-data approach by the author in testing the client's program and verification of the subsidiary file. B. Use of a running control total for the master file of checking account balances and comparison with the printout. C. A program check for valid customer code. D. Periodic recompiling of programs from documented source files, and comparison with programs currently in use.

C

In an activity-based costing system, cost reduction is accomplished by identifying and eliminating All cost drivers ------------------------------------Non-value-adding -------------------------------------activities A. No--------------------------------------No B. Yes-------------------------------------Yes C. No--------------------------------------Yes D. Yes-------------------------------------No

C

In the computation of manufacturing cost per equivalent unit, the weighted-average method of process costing considers A. Current costs only. B. Current costs plus cost of ending work in process inventory. C. Current costs plus cost of beginning work in process inventory. D. Current costs less cost of beginning work in process inventory.

B

In the cost of quality, costs incurred in detecting individual units of product that do not conform to specifications are A. Prevention costs. B. Appraisal costs. C. Internal failure costs. D. External failure costs.

C

Internal auditors at Henry Flower's Flower shop are undertaking a comprehensive review of outsourcing contracts and policies as part of improving service quality. In the COBIT model, this is best classified as an example of A. Planning and Organization. B. Acquisition and Implementation. C. Delivery and Support. D. Monitoring

D

Kemple is a newly established janitorial firm, and the owner is deciding what type of checking account to open. Kemple is planning to keep a $500 minimum balance in the account for emergencies and plans to write roughly 80 checks per month. The bank charges $10 per month plus a $0.10 per check charge for a standard business checking account with no minimum balance. Kemple also has the option of a premium business checking account that requires a $2,500 minimum balance but has no monthly fees or per check charges. If Kemple's cost of funds is 10%, which account should Kemple choose? A. Standard account, because the savings is $34 per year. B. Premium account, because the savings is $34 per year. C. Standard account, because the savings is $16 per year. D. Premium account, because the savings is $16 per year.

D

Newman Products has received proposals from several banks to establish a lockbox system to speed up receipts. Newman receives an average of 700 checks per day averaging $1,800 each, and its cost of short-term funds is 7% per year. Assuming that all proposals will produce equivalent processing results and using a 360-day year, which one of the following proposals is optimal for Newman? A. A $0.50 fee per check. B. A flat fee of $125,000 per year. C. A fee of 0.03% of the amount collected. D. A compensating balance of $1,750,000.

D

Roger buys seashells from Sally's SeaShore Sales. A more secure way for Roger to access Sally's website is by A. XBRL. B. An intranet. C. The Internet. D. An extranet.

C

Russell Inc. is evaluating four independent investment proposals. The expected returns and standard deviations for each of these proposals are presented below. Investment proposal ---------------Expected --------------------------returns -------Standard ------------------------------------------deviation I. ------------------------16%------------- 10% II.------------------------ 14%------------- 10% III. -----------------------20%------------- 11% IV. -----------------------22% -------------15% Which one of the investment proposals has the least relative level of risk? A. Investment I. B. Investment II. C. Investment III. D. Investment IV.

A

The balanced scorecard generally uses performance measures with four different perspectives. Which of the following performance measures would be part of those used for the internal business processes perspective? A. Cycle time. B. Employee satisfaction. C. Hours of training per employee. D. Customer retention.

C

Russell Inc. is evaluating four independent investment proposals. The expected returns and standard deviations for each of these proposals are presented below. Investment proposal-------- Expected ----------------------returns------------- Standard --------------------------------------------deviation I. ------------------16%------------- 10% II. ------------------14%------------ 10% III. -----------------20%------------- 11% IV. -----------------22%------------- 15% Which one of the investment proposals has the least relative level of risk? A. Investment I. B. Investment II. C. Investment III. D. Investment IV.

A

Some economic indicators lead the economy into a recovery or recession, and some lag it. An example of a lagging indicator is (This question is CIA adapted) A. Chronic unemployment. B. Orders for consumer and producer goods. C. Housing starts. D. Consumer expectations.

A

The Internet is made up of a series of networks which include A. Gateways to allow mainframe computers to connect to personal computers. B. Bridges to direct messages through the optimum data path. C. Repeaters to physically connect separate local area networks (LANs). D. Routers to strengthen data signals between distant computers.

C

The basic difference between a master budget and a flexible budget is that a master budget is A. Only used before and during the budget period and a flexible budget is only used after the budget period. B. For an entire production facility and a flexible budget is applicable to single departments only. C. Based on one specific level of production and a flexible budget can be prepared for any production level within a relevant range. D. Based on a fixed standard and a flexible budget allows management latitude in meeting goals.

B

The best reason corporations issue Eurobonds rather than domestic bonds is that (This question is CMA adapted) A. These bonds are denominated in the currency of the country in which they are issued. B. These bonds are normally a less expensive form of financing because of the absence of government regulation. C. Foreign buyers more readily accept the issues of both large and small U.S. corporations than do domestic investors. D. Eurobonds carry no foreign exchange risk.

B

The best reason corporations issue Eurobonds rather than domestic bonds is that A. These bonds are denominated in the currency of the country in which they are issued. B. These bonds are normally a less expensive form of financing because of the absence of government regulation. C. Foreign buyers more readily accept the issues of both large and small US corporations than do domestic investors. D. Eurobonds carry no foreign exchange risk.

C

The component of COSO's framework for internal control that includes the goal of proper measurement of transactions is A. The control environment. B. Control activities. C. Information and communication. D. Monitoring.

B

The machine-language program that results when a symbolic-language program is translated is called a(n) A. Processor program. B. Object program. C. Source program. D. Wired program.

D

The market for outstanding, listed common stock is called the A. Primary market. B. New issue market. C. Over-the-counter market. D. Secondary market.

A

The primary target audience of COBIT includes ___________ while the primary target audience of COSO includes __________________. A. Internal auditors; external auditors B. Board of directors; management C. Board of directors; external auditors D. Management; internal auditors

A

The producer price index measures A. The price of a basket of commodities at the point of the first commercial sale. B. Price changes for all products sold by domestic producers to foreigners. C. Price changes of goods purchased from other countries. D. The price of a fixed market basket of goods and services purchased by a typical urban consumer.

A

The use of a voucher systems helps control A. Unauthorized payment of invoices. B. Unauthorized orders of goods C. The use of unauthorized vendors D. Underpayments to supplier

D

To evaluate its performance, the Blankie Co. is comparing its costs of quality from one year to the next. The relevant costs are as follows: -------------------First Year--------- Second Year Prevention ----$45,000--------- 60,000 Appraisal -----------25,000---------35,000 Internal failure -----80,000-------- 50,000 External failure 75,000-------- 65,000 Which of the following conclusions can Blankie draw about its quality program? A. It has been a failure, because conformance costs decreased by $40,000 while nonconformance costs increased by $25,000. B. It has been a success, because conformance costs decreased by $40,000 and nonconformance costs increased by $25,000. C. It has been a failure, because conformance costs increased by $25,000 while nonconformance costs decreased by $40,000. D. It has been a success, because conformance costs increased by $25,000 while nonconformance costs decreased by $40,000.

A

Typical product-costing systems synchronize the recording of accounting-system entries with the physical sequence of purchases and production. The alternative (which is normally used in high-speed automated environments) of delaying journal entries until after the physical sequences have occurred is referred to as A. Backflush costing. B. Direct costing. C. Operation costing. D. Process costing.

A

Under a standard cost system, the material efficiency variances are the responsibility of A. Production and industrial engineering. B. Purchasing and industrial engineering. C. Purchasing and sales. D. Sales and industrial engineering.

A

What is an example of the use of the cloud to access hardware? A. IaaS B. PaaS C. SAP D. ERP

C

What is the major advantage of a zero-balance account system? A. It helps insure that cash is available for contingencies. B. It maximizes the amount of interest earned on demand deposits. C. It maximizes the float involved in cash disbursements. D. It maximizes the float involved in cash receipts.

B

When calculating the cost of capital, the cost assigned to retained earnings should be A. Zero. B. Lower than the cost of external common equity. C. Equal to the cost of external common equity. D. Higher than the cost of external common equity.

C

When erroneous data are detected by computer program controls, such data may be excluded from processing and printed on an error report. The error report should most probably be reviewed and followed up by the A. Supervisor of computer operations. B. Systems analyst. C. Control group. D. Computer programmer.

A

When net exports are negative, there is a net flow of (This question is CMA adapted) A. Goods from firms in foreign countries to the domestic country. B. Money from foreign countries to the firms of the domestic country. C. Goods from the firms of the domestic country to foreign countries. D. Goods and services which result in a trade surplus.

C

Which of the following controls is mostly likely to prevent a kickback to a purchasing agent? A. Prenumbering of purchase order B. Matching packing lists to vendor invoices C. Periodically requiring purchasing agents to disclose their relationships to all vendors D. Requiring authorization to receive goods from vendors

A

Which of the following effects would a lockbox most likely provide for receivables management? A. Minimized collection float. B. Maximized collection float. C. Minimized disbursement float. D. Maximized disbursement float.

B

Which of the following instruments of monetary policy is the most important means by which the money supply is controlled? A. Changing the reserve ratio. B. Open market operations. C. of government spending. D. Changing the discount rate.

A

Which of the following inventory management approaches orders at the point where carrying costs equate nearest to restocking costs in order to minimize total inventory cost? A. Economic order quantity. B. Just-in-time. C. Materials requirements planning. D. Activity-based costing (ABC).

A

Which of the following is a general control rather than a transaction control activity? A. Technology development policies and procedures. B. Reconciliations. C. Physical controls over assets. D. Controls over standing data.

B

Which of the following is an advantage of the accounting rate of return method of evaluating investment returns? A. The technique considers depreciation. B. The technique corresponds to the measure that is often used to evaluate performance. C. The technique considers the time value of money. D. The technique considers the risk of the investment.

A

Which of the following is an advantage of using a value-added network for EDI transactions? A. Ability to deal with differing data protocols. B. Decrease in cost of EDI. C. Increase in data redundancy. D. Direct communication between trading partners.

D

Which of the following is assigned to goods that were either purchased or manufactured for resale? A. Relevant cost. B. Period cost. C. Opportunity cost. D. Product cost.

B

Which of the following is not a component in the COSO framework for internal control? A. Control environment. B. Segregation of duties. C. Risk assessment. D. Monitoring.

B

Which of the following is not a limitation of internal control? A. Human judgment in decision-making may be faulty. B. External forces may attack the system. C. Management may override internal control. D. Controls may be circumvented by collusion.

D

Which of the following is the most expensive form of additional capital? A. New debt. B. New preferred stock. C. Retained earnings. D. New common stock.

B

Which of the following items would be most critical to include in a systems specification document for a financial report? A. Cost-benefit analysis B. Data elements needed C. Training requirements D. Communication of change management considerations

C

Which of the following statements concerning the discounted payback period approach to project evaluation is/are correct? I. It takes into account cash flows received over the entire life of the project. II. Any project economically acceptable under the payback period approach will be acceptable under the discounted payback period approach. III. Any project economically acceptable under the discounted payback period approach will be acceptable under the payback period approach. A. I only. B. II only. C. III only. D. I and III only.

D

Which of the following statements regarding transfer pricing is false? A. When idle capacity exists, there is no opportunity cost to producing intermediate products for another division. B. Market-based transfer prices should be reduced by any costs avoided by selling internally rather than externally. C. No contribution margin is generated by the transferring division when variable cost-based transfer prices are used. D. The goal of transfer pricing is to provide segment managers with incentive to maximize the profits of their divisions.

C

Which of the following types of control plans is particular to a specific process or subsystem, rather than related to the timing of its occurrence? A. Preventive. B. Corrective. C. Application. D. Detective.

A

Which of the following types of merger is most likely to contribute to the formation of an oligopoly? A. Horizontal. B. Conglomerate. C. Divestiture. D. Vertical.

C

Which one of the following responses is not an advantage to a corporation that uses the commercial paper market for short-term financing? A. This market provides more funds at lower rates than other methods provide. B. The borrower avoids the expense of maintaining a compensating balance with a commercial bank. C. There are no restrictions as to the type of corporation that can enter into this market. D. This market provides a broad distribution for borrowing.

A

Which statement is not one of the objectives of internal control as included in the definition of internal control developed by the Committee of Sponsoring Organizations (COSO)? A. Asset safeguarding. B. Compliance. C. Financial reporting. D. Operations.

B

With respect to the use of commercial paper by an industrial firm, which one of the following statements is most likely to be true? (This question is CMA adapted) A. The commercial paper is issued through a bank. B. The commercial paper has a maturity of 60-270 days. C. The commercial paper is secured by the issuer's assets. D. The commercial paper issuer is a small company.

A

XBRL is a ____________ that is derived from ________. A. Financial tagging language; XML B. Protocol; STMP C. Company; a stock offering D. Financial tagging language; STMP