Pass Bec

Question 1

Current Ratio Formula?

Answer 1

Current Assets/Current Liabilities

Question 2

Quick Ratio Formula?

Answer 2

Current Assets- Inventory & Prepaids/ Current Liabilities

Question 3

Inventory Turnover Formula

Answer 3

Cost of Goods Sold/ Average Inventory (Beg Inv + End Inv)/2

Question 4

Receivable Turnover

Answer 4

Net Credit Sales / Average AR (Beg AR + End AR)/2

Question 5

Net Present Value

Answer 5

This compares the present value of the cash from the project to the initial cash investment in the project.

If the NPV is zero or positive, then the project is economically feasible

Question 6

Components of COSO

Answer 6

Governance and culture
Strategy and objective-setting
Performance
Review and revision
Information, communication, and reporting

Question 7

Oligopoly

Answer 7

Where a small number of sellers selling similar or differentiated products. Entry to the market is restricted. Each seller is large enough to influence the market prices.

A “cartel” is a group of firms that conspire together to fix prices

Question 8

SWOT Analysis

Answer 8

Strength
Weakness
Opportunities
Threats

Question 9

Return on Assets

Answer 9

Net Income/ Total Assets

Question 10

Gateway

Answer 10

A connection that connects two dissimilar networks

Question 11

Monopolistic Competition

Answer 11

Large number of small producers of differentiate products

Question 12

PEST Analysis

Answer 12

Political, economic, social, and technology

Question 13

Call Option

Answer 13

Give the holder the right to buy an asset for a specified exercise price (also strike price) on or before a specified expiration date

Question 14

WAN

Answer 14

Wide area networks are networks that cover large geographic areas, such as a national network

Question 15

XML

Answer 15

Extensible markup language is a protocol for encoding documents in a machine readable form

Question 16

HTML

Answer 16

Hypertext markup language is a language for web pages

Question 17

TCP/IP

Answer 17

Transmission control protocol/internet control is a transmission protocol of the internet

Question 18

XBRL

Answer 18

Extensible business reporting language is a protocol for encoding and tagging business and accounting specific information in electronic form

Question 19

FLP

Answer 19

File transfer protocol is a protocol used to transfer files from a client to a server

Question 20

Rollback and recovery method of backup

Answer 20

When transactions are backed up as they occur, but there are also “snapshots” backed up so that backup can roller back to a certain time period

Question 21

Mirroring

Answer 21

A method of backup that backs up an exact copy to multiple sites

Question 22

Biometric controls

Answer 22

Fingerprint scanners that are used instead of passwords

Question 23

Strong passwords

Answer 23

Has at least 8 characters, and uses both upper and lowest case letters

Question 24

File attributes

Answer 24

Restrict the read/write/edit capabilities of a record

Question 25

Social engineering

Answer 25

A set of techniques used by a fraudster to get sensitive information from employers. The distinction is getting information from people instead of actually hacking computer systems

Question 26

4 electrical systems risks

Answer 26

Failure or outage Reduce voltage (brownout) Spike and surges Electromagnetic interference

Question 27

Clear text or plaintext

Answer 27

Text that can written or understood versus something like computer language

Question 28

Symmetric Encryption

Answer 28

Using a single algorithm to encrypt or decrypt

Question 29

How does a ditial certificate work?

Answer 29

Providing electronic identification and verification of a message

Question 30

How does a asymmetric encryption work?

Answer 30

By using two paired algorithms to encrypt and decrypt text

Question 31

Secure internet transactions

Answer 31

Made possible by 2 main security protocols SSL (Secure sockets layer) S-HTTP (Secure hypertext transport protocol)

Question 32

Ciphertext

Answer 32

Scrambled text that cannot be understood without using an algorithm and key

Question 33

Derived Demand

Answer 33

The demand for a good or service that results because it is an input needed in order to provide another good or service for which there is demand.

Question 34

Average prosensity to consume (APC)

Answer 34

The percent of disposable income spent on consumable goods.

Question 35

Average prosensity to save (APS)

Answer 35

The percent of disposable income saved

Question 36

What happens on a Supply Curve during a perfectly competitive market and why?

Answer 36

It will be upward sloped because the firm will provide more goods only if the price is increased to accommodate increasing costs.

Question 37

What direction would the supply curve shift inward?

Answer 37

Left

Question 38

What is a leakage? What are examples of leakages?

Answer 38

Income used for purpose other than domestic consumption. Example: Savings Taxes Payment for imports

Question 39

Marginal Propensity to consume

Answer 39

Measures the change in spending as the percentage of change in disposable income

Question 40

Capital Asset Procing Model (CAPM)

Answer 40

Required Rate of Return (RFR) + Beta (Expected rate of return(ERR) - RFR) RFR + β(ERR- RFR)

Question 41

What is the P/E for share common stock?

Answer 41

Price/Earnings= Market price/ Earnings per share (EPS) Both values are per share basis and the resulting calculation shows the relationship between the price of the stock in the market and the earnings for each share of stock

Question 42

Effective Interest Rate (EAR)

Answer 42

(1 + r/m)^m -1 R = stated interest rate M= compounding frequency

Question 43

Price-earnings ratio

Answer 43

(Market Price Per Share)/(Annual Earnings per share)

Question 44

What accounts for the difference between the stated rate and the effective annual rate of a loan?

Answer 44

The Frequency of compounding