BEC - Flash Card
(239 cards)
When sanctions imposed is over ________, a mandatory bounty can be applied.
1M
What’s the range of mandatory awards?
Btw 10% and 30% of sanctions imposed.
External assessment for internal audit must be conducted _______
Once every 5 yrs
According to COSO principles, risk assessment primarily related to _______?
Organizational objectives, risk assessment, fraud, and change management.
According to the COSO principles, the control environment includes ________?
Establishing integrity and ethical value in the organizational culture.
According to COSO principles, control activities primarily relate to ________?
Risk reduction, technology controls, and policies
According to COSO principles, monitoring primarily relate to ________?
Establishing ongoing and periodic evaluations, and addressing control deficiencies.
What is “debenture”
A “debenture” is an unsecured bond.
What is “indenture”?
“Indenture” is a term given to a bond contract.
Formula of cash cycle:
Inventory conversion cycle + accounts receivable conversion cycle - accounts payable conversion cycle
Def: Infrastructure as a service (laaS)
Access to virtual hardware
Def: Platform as a service (PaaS)
Access operating system and related services
eg. use of the cloud to create (not access) software.
Def: Software as a service (SaaS)
Access software. (Eg. Google doc)
eg. use of the cloud to use (not create) software
A transaction processing system is also called
Operational system
Organizations that adopt activity-based costing tends to have more:
- Precise measures of cost
- Cost pools
- Allocation bases (e.g., multiple causes for costs to occur)
under direct (variable) costing, which of the following is treated as product costs?
Variable manufacturing cost
Fix manufacturing cost
Variable selling and admin cost
Fix selling and admin cost
Only variable manufacturing cost is product cost, the rest of are period cost
Level 2 inputs in the U.S. GAAP hierarchy of inputs for fair value determination include quoted prices in ?
Active markets for similar (but not identical) assets or liabs
AND
Both identical and similar assets and liabs in inactive markets.
Eg. Corp bonds(high yield), mortgage-back securities, bank loans, municipal bonds, certain OTC derivatives
Level 1 inputs:
Observable, quoted prices for identical assets or liabs active markets.
Eg. US government and agency securities, foreign gov debt, listed equites and money market securities.
Level 3 inputs:
Unobservable inputs for assets or liabs
Eg. Distressed debt, private equity, exotic or non-standard derivatives.
Which one of the following is not a limitation of black-scholes option pricing model?
A. It fails to consider the probability that the option will be exercised.
B. It assumes the stock does not pay dividends.
C. It assumes the risk-free rate of return used for discounting remains constant during the option period.
D. It assumes the option can be exercised only at the expiration date.
A
The demand curve reflects the impact that price has on the amount of a _________.
Product purchased.
Dif. Btw call option and a put option?
Call option:
buying a specific security at fixed conditions of price and time.
Put option:
Sell a specific security at fixed conditions of price and time.
Return on investment:
Profit margin percentage:
Capital turnover:
Return on investment:
income/investment
Profit margin percentage:
Income/sales
Capital turnover:
Sales/investment
Operating cycle:
Account receivable conversion cycle+inventory conversion cycle