5742 Business Environ. & Concept CPA Review
1. Which of the following is an indicator of financial expertise?
a. Formal business education
b. An understanding of generally accepted accounting principles
c. Previous experience as a board of director member
d. Previous experience as a supervisor of accounts receivable
2. Which of the following is not a purpose of the Sarbanes-Oxley Act?
a. Regulate the auditors of public companies
b. Ensure the adherence of relevant laws and regulations
c. Enhance corporate reporting and disclosure
d. Clarify sound corporate governance
3. In most jurisdictions, a corporation's principal officers are
a. Appointed by the board of directors
b. Appointed by the chief executive officer
c. Appointed by the company stakeholders
d. Elected by the company shareholders
4. Which of the following is an advantage of a computer-based system for transaction processing over a manual system?
a. Will be more efficient at producing financial statements.
b. Eliminates the need to reconcile control accounts and subsidiary ledgers.
c. Does not require as stringent a set of internal controls.
Will produce a more accurate set of financial statements
5. The process of developing specifications for hardware, software, manpower, data resources, and information products required to develop a system is referred to as
A. System analysis.
B. Systems feasibility study.
C. Systems maintenance.
D. System design
6. The most critical aspect of separation of duties within information systems is between
A. Programmers and system analysts.
B. Project leaders and programmers.
C. Programmers and computer operators.
D. Management and users
7. Two phases of systems planning are project definition and project initiation. All of the following are steps in the project initiation phase except
A. Training selected personnel.
B. Preparing the project proposal.
C. Information managers and employees of the project.
D. Assembling the project team.
8. The current generation of ERP software (ERP II) has front-office functions like
A. Customer service.
B. Purchasing.
c. Human resources.
d. Inventory control.
9. Most of today’s computer systems have hardware controls that are built in by the computer manufacturer. Common hardware controls are
a. Duplicate circuitry, echo check, tape file protection, and internal header labels.
b. Tape file protection, cryptographic protection, and limit checks.
c. Duplicate circuitry, echo check, and internal header labels.
d. Duplicate circuitry, echo check, and dual reading.
10. A digital signature is used primarily to determine that a message is
A. Received by the intended recipient.
B. Not intercepted en route.
C. Sent to the correct address.
D. Unaltered in transmission
11. A database has three record types: 1) for supplier, a type that contains a unique supplier number, a supplier name, and a supplier address; 2) for parts, a type that contains a unique part number, a part name, a description, and a location; and 3) for purchases, a type that contains a unique supplier number referencing the supplier number in the supplier record, a part number referencing the part number in the part record, and a quantity. This database has a
A. Relational structure.
B. Network structure.
C. Hierarchical structure.
D. Single flat file structure.
12. Hardware controls usually are those built into the equipment by the manufacturer. One such control, an echo check, is best described as
A. A component that signals the control unit that an operation has been performed.
B. Two units that provide read-after-write and dual-read capabilities.
C. Double wiring of the CPU and peripheral equipment to prevent malfunctioning.
D. A device that prevents more than one peripheral unit from communicating with the CPU at the same time.
13. Batch processing
A.. Accumulates transaction records into groups for processing against the master file on a delayed basis.
B. Allow users to inquire about groups of information contained in the system.
C. Can only be performed on a centralized basis.
D. Is not used by most businesses because it reduces the audit trail.
14. Which of the following is a password XXXXX problem?
A. Users have accounts on several systems with different passwords.
B. Users are assigned passwords when accounts are created, but do not change them.
C. Users copy their passwords on note paper, which is kept in their wallets.
D. Users select passwords that are not listed in any online dictionary.
15. A file containing relatively long-term information used as a source of reference and periodically update with detail is termed a
A. Record layout.
B. Dump.
C. Master file.
D. Transaction file
16. Which of the following segments of the economy will be least affected by the business cycle?
A. Healthcare industry.
B.. Machinery and equipment industry.
C. Commercial construction industry.
D. Residential construction industry.
17. If the federal government regulates a product or service in a competitive market by setting a maximum price below the equilibrium price, what is the long-run effect?
A decrease in demand.
B. A shortage.
C. No effect on the market.
D. A surplus.
18. All of the following are characteristics of monopolistic competition except that
A. The firms tend not to recognize the reaction of competitors when determining prices.
B. Individual firms have some control over the price of the product.
C. The firms sell a homogeneous product.
D. The consumer demand curve is highly elastic.
`` 19. One of the measures economists and economic policy makers use to gauge a nation ’ s economic growth is to calculate the change in the
A. Real per capita output.
B. Total wages.
C. General price level.
D. Money supply.
20. Economic rent is the total price paid for land and other natural resources when there is a(n)
A. Completely fixed total supply.
B. Artificial market price.
C. Fixed demand schedule.
D. Completely elastic supply function.
21. Which of the following statements is correct if there is an increase in the resources available within an economy?
A. More goods and services will be produced in the economy.
B. The economy will be capable of producing more goods and services.
C. The standard of living in the economy will rise.
D. The technological efficiency of the economy will improve
22. The costs of the use of a resource for the production of one good rather than another are
a. Economic costs
b. Fixed costs
c. Historical costs
d. Opportunity costs
23. What increases when U.S. commercial banks increase net deposits?
a. Purchasing power of the U.S. dollar
b. Real U.S. national income
c. Real wealth of the U.S.
d. U.S. money supply
24. Carlton Bank has an increase in reserves of $1,000,000. If the reserve ratio is 10%, by what amount may Carlton increase its demand deposits?
a. $ 100,000
b. $ 900,000
c. $ 1,000,000
d. $ 10,000,000
25. Keynesian economic theory holds that during the peak of the business cycle, the normal workings of the labor market result in
a. Cyclical unemployment
b. Frictional unemployment
c. Phillips unemployment
d. No unemployment
26. What factor would tend to cause a nation's currency to appreciate in a foreign exchange market with freely fluctuating exchange rates?
a. Relatively high domestic real interest rates
b. Relatively high domestic inflation
c. Increased environmental protection measures resulting in higher prices on goods for export
d. Increased demand for imports
27. Which of the following products are not complementary goods?
a. Cars and tires
b. Chips and dip
c. Lamps and light bulbs
d. Video tapes and DVDs
28. What is the effect on the market price when both the supply and demand for a good increase?
a. Decrease only with inelastic demand
b. Decrease only with inelastic supply
c. Increase only with inelastic demand
d. Indeterminate from the given information
29. Marginal utility
a. Decreases when consumption expands
b. Increases when consumption expands
c. Indicates that a high consumption quantity is preferred to a low consumption quantity
d. Indicates that consumption decreases over time
30. The net income presented on an income statement prepared in conforming with generally accepted accounting principles generally is
a. Equal to economic profit
b. Greater than economic profits because interest is not considered in calculating economic profits
c. Greater than economic profits because opportunity costs are not considered in calculating net income
d. Less than economic profits because economic profits don't include fixed costs
31. The labor market for masons is competitive and stable. What is the likely short-term result of an attempt to increase masons' wages?
a. Decreased employment levels
b. Decreased employer size
c. Increased employer size
d. Increased labor supplied
32. What is disposable income?
a. The sum of consumption spending, interest payments, and savings
b. Gross domestic product divided by population, adjusted for inflation
c. Net domestic product plus a country's net income earned abroad less indirect business taxes
d. The total market value of all final goods and service produced within a specified country, less depreciation
33. Which of the following are not assumptions of classical economic theory?
a. Flexible interest rates allow self-correcting equilibrium of savings and investing.
b. Flexible prices allow self-correcting of shortages and surpluses in product markets.
c. Full employment is not necessarily an attribute of equilibrium.
d. An increase in money leads to an increase in aggregate demand
34. Rice production in Japan is protected partially by import tariffs and quotas. What is a consequence of this protection?
a. Decreased domestic price for rice
b. Decreased short-run employment in domestic rice production
c. Increased domestic price for rice
d. Increased volume of international rice trade
35. What will be the likely result of a decline in the value of the U.S. dollar relative to the currencies of the United States' trading partners?
a. The U.S. trade deficit will increase.
b. U.S. imports will increase.
c. U.S. exports will increase.
d. Foreign currencies will depreciate compared to the U.S. dollar.
password: shiv
1. Which of the following is an indicator of financial expertise?
a. Formal business education
b. An understanding of generally accepted accounting principles
c. Previous experience as a board of director member
d. Previous experience as a supervisor of accounts receivable
2. Which of the following is not a purpose of the Sarbanes-Oxley Act?
a. Regulate the auditors of public companies
b. Ensure the adherence of relevant laws and regulations
c. Enhance corporate reporting and disclosure
d. Clarify sound corporate governance
3. In most jurisdictions, a corporation's principal officers are
a. Appointed by the board of directors
b. Appointed by the chief executive officer
c. Appointed by the company stakeholders
d. Elected by the company shareholders
4. Which of the following is an advantage of a computer-based system for transaction processing over a manual system?
a. Will be more efficient at producing financial statements.
b. Eliminates the need to reconcile control accounts and subsidiary ledgers.
c. Does not require as stringent a set of internal controls.
Will produce a more accurate set of financial statements
5. The process of developing specifications for hardware, software, manpower, data resources, and information products required to develop a system is referred to as
A. System analysis.
B. Systems feasibility study.
C. Systems maintenance.
D. System design
6. The most critical aspect of separation of duties within information systems is between
A. Programmers and system analysts.
B. Project leaders and programmers.
C. Programmers and computer operators.
D. Management and users
7. Two phases of systems planning are project definition and project initiation. All of the following are steps in the project initiation phase except
A. Training selected personnel.
B. Preparing the project proposal.
C. Information managers and employees of the project.
D. Assembling the project team.
8. The current generation of ERP software (ERP II) has front-office functions like
A. Customer service.
B. Purchasing.
c. Human resources.
d. Inventory control.
9. Most of today’s computer systems have hardware controls that are built in by the computer manufacturer. Common hardware controls are
a. Duplicate circuitry, echo check, tape file protection, and internal header labels.
b. Tape file protection, cryptographic protection, and limit checks.
c. Duplicate circuitry, echo check, and internal header labels.
d. Duplicate circuitry, echo check, and dual reading.
10. A digital signature is used primarily to determine that a message is
A. Received by the intended recipient.
B. Not intercepted en route.
C. Sent to the correct address.
D. Unaltered in transmission
11. A database has three record types: 1) for supplier, a type that contains a unique supplier number, a supplier name, and a supplier address; 2) for parts, a type that contains a unique part number, a part name, a description, and a location; and 3) for purchases, a type that contains a unique supplier number referencing the supplier number in the supplier record, a part number referencing the part number in the part record, and a quantity. This database has a
A. Relational structure.
B. Network structure.
C. Hierarchical structure.
D. Single flat file structure.
12. Hardware controls usually are those built into the equipment by the manufacturer. One such control, an echo check, is best described as
A. A component that signals the control unit that an operation has been performed.
B. Two units that provide read-after-write and dual-read capabilities.
C. Double wiring of the CPU and peripheral equipment to prevent malfunctioning.
D. A device that prevents more than one peripheral unit from communicating with the CPU at the same time.
13. Batch processing
A.. Accumulates transaction records into groups for processing against the master file on a delayed basis.
B. Allow users to inquire about groups of information contained in the system.
C. Can only be performed on a centralized basis.
D. Is not used by most businesses because it reduces the audit trail.
14. Which of the following is a password XXXXX problem?
A. Users have accounts on several systems with different passwords.
B. Users are assigned passwords when accounts are created, but do not change them.
C. Users copy their passwords on note paper, which is kept in their wallets.
D. Users select passwords that are not listed in any online dictionary.
15. A file containing relatively long-term information used as a source of reference and periodically update with detail is termed a
A. Record layout.
B. Dump.
C. Master file.
D. Transaction file
16. Which of the following segments of the economy will be least affected by the business cycle?
A. Healthcare industry.
B.. Machinery and equipment industry.
C. Commercial construction industry.
D. Residential construction industry.
17. If the federal government regulates a product or service in a competitive market by setting a maximum price below the equilibrium price, what is the long-run effect?
A decrease in demand.
B. A shortage.
C. No effect on the market.
D. A surplus.
18. All of the following are characteristics of monopolistic competition except that
A. The firms tend not to recognize the reaction of competitors when determining prices.
B. Individual firms have some control over the price of the product.
C. The firms sell a homogeneous product.
D. The consumer demand curve is highly elastic.
`` 19. One of the measures economists and economic policy makers use to gauge a nation ’ s economic growth is to calculate the change in the
A. Real per capita output.
B. Total wages.
C. General price level.
D. Money supply.
20. Economic rent is the total price paid for land and other natural resources when there is a(n)
A. Completely fixed total supply.
B. Artificial market price.
C. Fixed demand schedule.
D. Completely elastic supply function.
21. Which of the following statements is correct if there is an increase in the resources available within an economy?
A. More goods and services will be produced in the economy.
B. The economy will be capable of producing more goods and services.
C. The standard of living in the economy will rise.
D. The technological efficiency of the economy will improve
22. The costs of the use of a resource for the production of one good rather than another are
a. Economic costs
b. Fixed costs
c. Historical costs
d. Opportunity costs
23. What increases when U.S. commercial banks increase net deposits?
a. Purchasing power of the U.S. dollar
b. Real U.S. national income
c. Real wealth of the U.S.
d. U.S. money supply
24. Carlton Bank has an increase in reserves of $1,000,000. If the reserve ratio is 10%, by what amount may Carlton increase its demand deposits?
a. $ 100,000
b. $ 900,000
c. $ 1,000,000
d. $ 10,000,000
25. Keynesian economic theory holds that during the peak of the business cycle, the normal workings of the labor market result in
a. Cyclical unemployment
b. Frictional unemployment
c. Phillips unemployment
d. No unemployment
26. What factor would tend to cause a nation's currency to appreciate in a foreign exchange market with freely fluctuating exchange rates?
a. Relatively high domestic real interest rates
b. Relatively high domestic inflation
c. Increased environmental protection measures resulting in higher prices on goods for export
d. Increased demand for imports
27. Which of the following products are not complementary goods?
a. Cars and tires
b. Chips and dip
c. Lamps and light bulbs
d. Video tapes and DVDs
28. What is the effect on the market price when both the supply and demand for a good increase?
a. Decrease only with inelastic demand
b. Decrease only with inelastic supply
c. Increase only with inelastic demand
d. Indeterminate from the given information
29. Marginal utility
a. Decreases when consumption expands
b. Increases when consumption expands
c. Indicates that a high consumption quantity is preferred to a low consumption quantity
d. Indicates that consumption decreases over time
30. The net income presented on an income statement prepared in conforming with generally accepted accounting principles generally is
a. Equal to economic profit
b. Greater than economic profits because interest is not considered in calculating economic profits
c. Greater than economic profits because opportunity costs are not considered in calculating net income
d. Less than economic profits because economic profits don't include fixed costs
31. The labor market for masons is competitive and stable. What is the likely short-term result of an attempt to increase masons' wages?
a. Decreased employment levels
b. Decreased employer size
c. Increased employer size
d. Increased labor supplied
32. What is disposable income?
a. The sum of consumption spending, interest payments, and savings
b. Gross domestic product divided by population, adjusted for inflation
c. Net domestic product plus a country's net income earned abroad less indirect business taxes
d. The total market value of all final goods and service produced within a specified country, less depreciation
33. Which of the following are not assumptions of classical economic theory?
a. Flexible interest rates allow self-correcting equilibrium of savings and investing.
b. Flexible prices allow self-correcting of shortages and surpluses in product markets.
c. Full employment is not necessarily an attribute of equilibrium.
d. An increase in money leads to an increase in aggregate demand
34. Rice production in Japan is protected partially by import tariffs and quotas. What is a consequence of this protection?
a. Decreased domestic price for rice
b. Decreased short-run employment in domestic rice production
c. Increased domestic price for rice
d. Increased volume of international rice trade
35. What will be the likely result of a decline in the value of the U.S. dollar relative to the currencies of the United States' trading partners?
a. The U.S. trade deficit will increase.
b. U.S. imports will increase.
c. U.S. exports will increase.
d. Foreign currencies will depreciate compared to the U.S. dollar.
password: shiv
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