Test Bank

Question 1

what is profitability index?

Answer 1

Net Present Value of the Project / Initial Cost of Project

Question 2

Private Key Encryption also called as ?

Answer 2

Single key encryption

Question 3

Who designs computer system?

Answer 3

Systems analyst

Question 4

Headers are used to identify?

Answer 4

Data Records in accounting system file

Question 5

In perfect monopoly, marginal revenue is?

Answer 5

Below the demand curve and curve diverge as quantity increases

Question 6

Form 941

Answer 6

Aggregate payroll tax withholding and payments

Question 7

FIFO EU

Answer 7

Total completed - BI +Proportionate CP completed EI +Proportionate CP completed BI (Cost is always CP)

Question 8

WA EU

Answer 8

Total Completed + Proportionate completed EI (cost is always B+CP)

Question 9

SaaS

Answer 9

Use of cloud to access software

Question 10

PaaS

Answer 10

Use of cloud to create software

Question 11

IaaS

Answer 11

Use of cloud to access virtual hardware

Question 12

Kinked demand curve

Answer 12

Oligopoly sellers will match price decrease but hesitant to match increase

Question 13

Oligopoly

Answer 13

there are few sellers, actions known and impact others. Price charged is greater than marginal cost

Question 14

Hybrid System

Answer 14

Distributed database system

Question 15

Perfect competition

Answer 15

Demand curve horizontal line and is perfectly elastic and any quantity can be sold at the same price

Question 16

Monopoly

Answer 16

Price Discrimination

Question 17

Profit is maximized when?

Answer 17

Marginal Revenue = Marginal Cost

Question 18

Source Program Library Management System (SPLMS)

Answer 18

management of changes to applications

Question 19

Basis Risk

Answer 19

Hedging Ineffective

Question 20

Systems Programmers

Answer 20

Responsible for system software incl. operating systems and compilers

Question 21

Options : Favorable and Unfavorable

Answer 21

Favorable - In the money (Strike Price Vs Market Price of stock) and Unfavorable - Out of the money

Question 22

Weighted average of expected returns of assets in portfolio is equal to

Answer 22

Expected Return of a Portfolio

Question 23

Physical controls over assets is

Answer 23

Application or Transaction controls

Question 24

SOC 1 Report

Answer 24

ICFR (limited distribution)

Question 25

SOC 2

Answer 25

Sys Trust Principles (limited)

Question 26

SOC3

Answer 26

Essence of Sys Trust Principles

Question 27

Correlation Coefficient strongest relationship of I & D variables

Answer 27

Close to -1 or +1

Question 28

Sales Volume Variance

Answer 28

Variance between budgeted numbers only. Variance between Static and Flexible Budgets

Question 29

Static Budget Variance

Answer 29

Variance between Sales Volume variance and Flexible Budget variance

Question 30

Syndication Agreements

Answer 30

agreement between group of bankers and investors to create financial transaction with shared risk

Question 31

Appreciation of domestic currency

Answer 31

Purchasing Power of domestic currency is more

Question 32

Depreciation of Domestic currency

Answer 32

Purchasing power of domestic currency is less

Question 33

How to decrease IRR?

Answer 33

Increase Investment Cost or Decrease Annual Cash inflow to get high PV which leads to lower IRR

Question 34

Kinds of transfer pricing?

Answer 34

Full cost, market price, negotiated and variable cost

Question 35

A general decline in prices of goods/services and level of interest rates?

Answer 35

Deflation (not recession - which is contraction in the economy)

Question 36

IT controls are?

Answer 36

General Controls (neither preventive nor detective)

Question 37

Crowdfunding?

Answer 37

A company can raise max of $1M in 12 month period.

Question 38

Data classification is?

Answer 38

Privacy and security of data

Question 39

Calculation of GDP?

Answer 39

personal consumption expenditures, plus gross private domestic fixed investment, plus government expenditures, adjusting for net exports and changes in business inventories. Household income is not included in the formula.

Question 40

Multiplier Effect

Answer 40

Initial change in spending*(1/(1-MPC))

Question 41

Confidence Interval

Answer 41

range of values within which, with a specific degree of uncertainly, the true value lies

Question 42

Data mining

Answer 42

new insights and relationship

Question 43

Unrelated areas for internal control

Answer 43

expenditure cycle vs sales/revenue cycle

Question 44

Primary Key

Answer 44

Customer ID

Question 45

Foreign Key

Answer 45

To identify another record

Question 46

Net proceeds from sale of by products are used to reduce joint cost?

Answer 46

no profit realized on the sale of by products

Question 47

Redundant backups approach

Answer 47

Grandfather-father-son (monthly-weekly-daily)

Question 48

Expert System

Answer 48

Integrates advice for a user

Question 49

M1 measure

Answer 49

Includes Currency, coins, check writing deposit

Question 50

Sox 2002, anyone who alters, destroys and cover up

Answer 50

20 years imprisonments to obstruct investigation

Question 51

Natural Monopoly

Answer 51

Increasing returns to Scale

Question 52

Interest Expense

Answer 52

Remains constant and should not be adjusted for inflation

Question 53

Normal Profit

Answer 53

Revenue - Sum of (Explicit & Implicit Costs)

Question 54

Accounting Rate of Return

Answer 54

Average Net Income / Average Investment

Question 55

Components of real GDP

Answer 55

Total worker hours and labor productivity

Question 56

Technology-SOD

Answer 56

Programming, operating and library functions to be segregated

Question 57

NNP

Answer 57

GNP-Depreciation

Question 58

Floating lien agreement

Answer 58

Borrower gives the lender a lien but retains control of inventory by selling or replacing

Question 59

Chattel mortgage agreement

Answer 59

Borrower gives the lender a lien but retains control of inventory but cannot sell without approval

Question 60

Terminal warehouse agreement

Answer 60

Pledged Inventory in public warehouse

Question 61

Field warehouse agreement

Answer 61

Pledged Inventory in borrower's warehouse but under control of independent 3rd party

Question 62

Return on Investment (ROI)

Answer 62

Profit Margin * Asset Turnover