B1-B6 Mixed

Question 1

earnings statement is part of which process?

Answer 1

human resources and payroll

Question 2

production schedule is what process?

Answer 2

manufacturing

Question 3

name 3 way match docs

Answer 3

receiving report
invoice
purchase order

Question 4

futures and call options do what?

Answer 4

hold the price constant

Question 5

is debt or equity cheaper to have?

Answer 5

debt, such as bonds bec ause of the tax deduction

Question 6

how can labor strike risk be diversified?

Answer 6

investing into different labor sources less susceptible to strikes

Question 7

risk averse

Answer 7

expecting higher return for greater risk

Question 8

what ERM component addresses commitment to core values?

Answer 8

governance and culture

Question 9

materials requirement planning

Answer 9

projects and plans inventory levels to control the usage of raw materials in production.

Question 10

what is a draft?

Answer 10

slows down payable float

Question 11

effective interest

Answer 11

amount of interest/compensating balance

Question 12

which element of coso erm does attracting, retaining, and obtaining capable employees fall under?

Answer 12

governance and culture

Question 13

trade credit

Answer 13

provides largest source of short term financing for small companies

Question 14

times interest earned ratio=

Answer 14

earnings before interst and tax/interest expense

Question 15

how is the money supply increased?

Answer 15

lower discount rate
buy bonds
lower req. reserve ratio

Question 16

what do monopoly plans focus on?

Answer 16

profitability from production to max out profits

Question 17

what does beta measure?

Answer 17

market volativity

Question 18

cash conversion formula

Answer 18

days in inventory+ days in sales-days in payables

Question 19

what do systems steering committees do?

Answer 19

oversight of information systems

Question 20

what is the purpose of data security controls?

Answer 20

to ensure storage media are protected

Question 21

cost of retained earnings

Answer 21

dividend/price+growth

Question 22

why is debt better during inflation

Answer 22

because you are paying it back with inflated money that is worth less than what was borrowed

Question 23

if the US$ declines how does it benefit us exporters?

Answer 23

makes US goods less expensive for foreign counties so more goods can be sold at US rate. volume sales helps the uS

Question 24

what type of depreciation is not included in cash flow for capital budgeting?

Answer 24

book depreciation because it is a noncash expense. the tax shield is for tax depriciation not book

Question 25

who does an issuer disclose it has a code of ethics for?

Answer 25

only required for the senior financial officers

Question 26

how can over-hedging be prevented?

Answer 26

aquuiring the min amount of hedge contracts

Question 27

how does strategic planning start?

Answer 27

defining firms mission and vison then a plan can be created

Question 28

how is cost of goods completed/COGM calculated?

Answer 28

DM used+DL+FOH applied+BWIP-EWIP

Question 29

what type of divesture generates cash and seperates its entity completly

Answer 29

a sell-off

Question 30

what does the demand curve represent?

Answer 30

the impact that price has on quantity purchased