Day 30

Question 1

The variance was calculated by comparing actual results with the flexible budget. This variance is known as:

Answer 1

A revenue variance (aka sales price variance) is due to a change in unit selling prices

MCQ-04145

Question 2

During the process of electronically transmitted data, what IT control would provide the most assurance that unauthorized disclosure of sensitive info would be prevented?

Answer 2

Encryption - involves using a digital key or password to scramble a readable message

MCQ-08921

Question 3

Equation: Cost Benefit for trade discounts

Answer 3

= [ 360 ÷ (Total pay period - Discount period) ] × [ Discount % ÷ (100% - Discount %) ]

MCQ-04048

Question 4

Under COSO, define Monitoring:

Answer 4

Monitoring is the process of accessing the quality of internal control performance over time by assessing the design and operations of controls on a timely basis and taking necessary corrective actions

MCQ-15780

Question 5

MCQ-03708 price elasticity equation

Question 6

Define: Residual Risk

Answer 6

The risk that remains after MGMT responds to that risk

MCQ-06762

Question 7

What pair of techniques provides the same level of assurance as an inked signature on a paper transaction?

Answer 7

Hashing and asymmetric encryption

Hashing - involves mapping large quantities of data into a smaller table to recover the data faster

MCQ-15783

Question 8

Characteristics of monopolistic competition:

Answer 8

• numerous firms with differentiated products
• ease of entry - few barriers
• firms exact some influence over price and markets
• non-price competition is frequent and critical

MCQ-03438

Question 9

There was a large stock market boom, how would the federal reserve contract this?

Answer 9

Sell government securities or increase the discount rate

An increase in wealth leads to increase price levels and an increase in GDP

The Fed wants to decrease money supply by selling government securities and increasing the discount rate

MCQ-14555

Question 10

A country engages in both import and export and will be exposed to exchange rate risks from transaction exposure? What is the greatest risk?

Answer 10

Payables dominated in foreign currency when the domestic currency falls

Payables have to be paid in foreign currency while the foreign currency appreciates and the domestic currency falls

MCQ-07848

Question 11

Define: free cash flow

Answer 11

Is the amount of cash that a business generates after taking into account reinvestment in non-current assets

MCQ-12460

Question 12

What are the requirements for a Just-In-Time system

Answer 12

1. Employee empowerment
2. Reduced setup time
3. Supplies received throughout the day as needed

Note: strong job specialization is not needed. Employees with multiple skills is better

MCQ-06794