Sept 17 Quiz Flashcards
(27 cards)
In globalization today, major flows of capital move from…
Emerging market economies to more developed economies
Variable rate loans reduce the potential interest rate risk of…
Both borrowers and lenders
In contrast to local and wide area networks, corporate intranets are typically characterized by…
Higher security risk and lower cost
What is the cost of capital of preferred stock with a par value of $70 per share, a dividend rate of 7%, issued at $73 per share with issuance costs of $5?
Capital cost = ($70 x 0.7)/(73 - 5)
Number of days in operating cycle equation
Number of days in operating cycle =
number of days sales in inventory + number of days sales in A/R
Payback reciprocal can be used to approximate a project’s…
Internal rate of return if cash flow pattern is relatively stable
Producing more units than planned for in the master budget will…
Not effect material efficiency variance
Six sigma quality is…
99.999997% perfect
Which of the following components of internal control encompass policies and procedures that ensure that management’s directives are carried out?
Control activities
What type of cost is assigned to goods that were either purchased or manufactured for resale?
Product costs
To prevent interrupted information systems operation, which of the following controls are typically included in an organizations’ disaster recovery plan? 2
Backup and downtime controls
Product costs for a job include 4
Product costs =
direct materials + direct labor + material handling + quality inspection
The rate of unemployment caused by changes in composition of employment opportunities over time is referred to as…
Structural unemployment
The organization evaluates and communicates internal control deficiencies in a timely manner, this is a principle of…
It’s not a principle of…
Principle of the monitoring component
Not risk assessment
Parity checks, read after write checks and duplicate circuitry are computer controls that are designed to detect…
Erroneous internal handling of data
With the growth of microcomputers, some organizations are allowing end users to develop their own applications. One of the organizational risks of this policy is…
Reduced control of data
The market value of a firm’s outstanding common shares will be higher, everything else equal if…
Investors have a lower required return on equity
Monitoring is one of the eight components of…
COSO’s enterprise risk management framework
According to internal auditors international standards,mute chief audit executive should establish…
A risk based approach to determine audit priorities
Which of the following rates is most commonly compared to the internal rate of return to evaluate whether to make an investment?
Weighted avg. cost of capital
When adjusting a budget for inflation what are 2 costs that won’t be multiplied by inflation?
1 depreciation
2 interest expense
Which of the following committees of the board of directors generally has the responsibility of overseeing CEO succession?
Nominating corporate governance committee
Multiple regression differs from simple regression in that it…
Has more independent variables
Maintaining the image of the company as the industry leader would be considered in…
A strategic plan
