BEC Exam 1 Study Questions & Answers 2024/2025
In addition, the audit committee is the recipient of numerous _ from management and the _ _ and is responsible for specific reporting. The various sections of the SOX Act are rigorous and place significant reporting burdens on management and the b...
In addition, the audit committee is the recipient of numerous _ from management and the _ _ and is
responsible for specific reporting. The various sections of the SOX Act are rigorous and place significant
reporting burdens on management and the board of directors in the name of _ _ _. The existence of the
audit committee is meant to serve as tangible evidence that those charged with governance are actively
engaged in _ _ _ and the _ of their company's FS - ANSWERSdisclosures; external auditor; improved
internal control; monitoring internal controls; audit
The SOC Act does not change the long-established best practice idea of the _ _ , but does make the
existence of the audit committee a _ _ and makes _ for membership on the committee and the minimum
_ of the committee more specific and a matter of law and regulation - ANSWERSaudit committee; legal
requirement; qualification; activities
The establishment of an audit committee as a _ of the board of directors has been long regarded as a "_
_" for corporate governance - ANSWERSsubcommittee; best practice
The effective annual interest rate is equal to: - ANSWERS[(1+stated interest rate/interest
periods)]^number of compounding periods - 1
When you are issuing commercial paper or a bond that has transaction costs, add the transaction costs
to the _ that is _. That means that the outflows is _ than just _ , it includes the _ _. Then do the equation
like normal - ANSWERSinterest; paid; more; interest; transaction costs
Account classification is not a _ _. Account classification is a bookkeeping mechanism used to accomplish
cost measurement and assignment of costs to cost objects. A cost objective can be most anything, but, if
effective, will always represent the most _ _ of a particular business' _-_ _ - ANSWERScost objective;
relevant components; decision-making requirements
For a firm earning a profit, increasing _ _ and _ _ by the _ _ will increase profits. This is because _ will go
up less in dollars than sales will. Increased profit with no change in the investment means a higher return
on investment - ANSWERSsales revenue; operating expenses; same percentage; expenses
, A price floor is only effective when it is set _ the _ _. In this case, the $8 _ _ is already higher than both
the $7 and the $6 _ _ - ANSWERSabove; equilibrium price; market price; price floors
Strategic risk includes the risk of choosing _ _ , and financial risk is the risk of having _ _ _ , _ , or _ -
ANSWERSinappropriate technology; financial resources lost; wasted; stolen
Information risk includes the risk of _ of _ _ and that of _ _ - ANSWERSloss; data integrity; incomplete
transactions
Under the SOX of 2002, internal controls must be evaluated within _ _ _ to the _ _ - ANSWERS90 days
prior; issuer's report
Osteen Industries has experienced a significant drop in its cash reserves. It is attempting to secure a line
of credit from its bank as a precaution. Osteen's most effective argument on its own behalf would be:
Declining cash balances result from aggressive _ of _ _ to capitalize on _ , as evidenced by an _ in the _ _.
The deterioration of a cash position that increases the _ _ indicates that Osteen is aggressively managing
_ and actually improving its _ _ - ANSWERSliquidation; A/P; discounts; increase; current ratio; current
ratio; payables; liquid position
When you are doing cost-volume-profit analysis and figuring out the breakeven point, if there are _ _
that are allocated to a product that are still incurred even if the product isn't manufactured, these costs
are _ _ - ANSWERSfixed costs; not relevant
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