BFS Practice Test

BFS Practice Test Pedro Sanchez works as a loan processor for the MON Company, which is located in Smithsville. Pedro has recently approved an application to extend a $10,000 line of credit to Mrs. Jones. Who is the creditor in this situation? - Mon Company An important purpose of full-disclosure laws and regulations is to: - Provide information to investors so they can make informed decisions Last week, a man who frequents Alice's health club and goes to the same church approached her and struck up a conversation. After a bit of small talk, the man said that he would love to help Alice earn some money in the stock market. "You can trust me," the man said. "We go to the same church and the same gym. In fact, our minister and the manager of the gym just gave me a ton of money to invest for them!" The man is attempting to commit _____ fraud. - Group affinity Which mutual fund is most likely to be tax inefficient: a. A fund with a low portfolio turnover rate b. A fund with a high portfolio turnover rate c. A fund that concentrates on a specialized sector d. A fund that attempts to match a broad market index - A fund with a high portfolio turnover rate Describe the taxation of Roth IRAs. - Contributions are taxed, but withdrawals during retirement are not. What is an example of a preventive internal control? - Segregation of duties. Which of the following is most likely to be a benefit of proactive compliance plans for businesses: a. Minimized costs and a reduction in senior management b. A competitive advantage and a reduction in senior management c. A competitive advantage and minimized costs d. Increased government scrutiny and minimized costs - A competitive advantage and minimized costs The most significant barriers that many companies face when implementing integrated governance, risk, and compliance (GRC) technology are what? - High cost and lack of evidence of return on investment While reviewing a business's general ledger, a virtual auditor identified two identical journal entries within the same accounting period. What reasoning technique did the virtual auditor use? - Symbolic Why should a researcher consider an author's expertise in a particular topic when assessing the validity of written articles and publications? - Evaluate the author's level of credibility Brandon has been given a 385-page report and does not have time to review the entire document, but does need to understand specific information that is included in the report. What section of the report will guide Brandon to the information he needs? - Table of contents If an employee needs to do some research to answer a customer's telephone inquiry, what is the best action for the employee to take is to take after obtaining the customer's telephone number: a. Put the customer on hold until the research has been completed b. Ask the sales manager to call the customer back c. Send the customer literature about the business and its products d. Follow-up with the customer after obtaining the requested information - Follow-up with the customer after obtaining the requested information In which situation is it most appropriate to use technical jargon to communicate information: a. While casually talking with acquaintances during a social gathering b. During a meeting in which business-people share the same vocabulary c. When making a public speech to the residents of a local community d. While demonstrating a complex machine to a new customer - During a meeting in which business-people share the same vocabulary Anna, a new employee with Turbo Electronics, must write a letter to a customer. Anna does not know which letter format to use. What should she do? - Ask her supervisor which letter format the company uses. What is an important aspect of a customer-centric business? - Aligning business activities with customer needs The MSB Company provides its customers