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What is the connection between time and interest rates when considering amounts of money? Using an interest rate makes one amount of money equal to a different amount of money at a different point in time. 2 FC..FC002_1709 How can discount rates be used to represent inherent risk on one capital investment versus another in capital budgeting? Use a higher discount rate for the investment with higher inherent risk. 3 FC.unt.FC001_1709 What does Payback method tell us? Payback method...

CMA Exam Review - Part 2 1 FC..FC006_1709 What is disbursement float? Disbursement float is a measure of the time between when a firm initiates payment and when the funds are deducted from the firm's bank account. 2 FC..FC005_1709 What is expected rate of inflation? The belief about whether prices will be increasing in the future and by how much. 3 FC..FC001_1709 Why do financial markets exist? Financial markets exist to facilitate the flow of money from investors (those looking...

U.S. CITIZENSHIP TEST QUESTIONS AND ANSWERS American Government A: Principles of American Democracy 1. What is the supreme law of the land? Correct answer: The Constitution Explanation: The Constitution is the highest law in the United States. It is the oldest written Constitution in the world. 2. What does the Constitution do? Correct answers (choose one): • sets up the government • defines the government • protects basic rights of Americans 3. The idea of self-government is in...

U2 D.1. Measurement Concepts: Part 1, and D.3. Overhead Costs: Part 1 Question Define relevant range. Answer The relevant range is the range of volume for which the assumptions of the cost driver (i. e., linear relationship with the costs incurred) are valid and in which the actual value of the cost driver exists. U2 D.1. Measurement Concepts: Part 1, and D.3. Overhead Costs: Part 1 Question Explain the difference between the contribution approach and the absorption approach. Answe...

U4 C.1. Cost and Variance Measures: Part 1 Question What is the formula for sales volume variance? Answer U4 C.1. Cost and Variance Measures: Part 1 Question What is the formula for sales price variance? Answer U4 Page 2 of 10 FC-00353 CSO: 1C1e LOS: 1C1k #4 FC-00352 CSO: 1C1e LOS: 1C1k #3 1. 2. 1. 2. U4 C.1. Cost and Variance Measures: Part 2 Question Identify the direct materials variances (two-way variance analysis). Answer Direct materials price variance = (AP − SP)...

Question What are the five principles associated with the control environment component of the Committee of Sponsoring Organizations' (COSO) Internal Control Integrated Framework? Answer Commitment to ethics and integrity Board independence and oversight Organizational structure Commitment to competence Accountability

Question Which departments are responsible for preparing the sales order, approving the sales order, preparing the bill of lading, and preparing the invoice? Answer Sales department: Prepares the sales order Credit department: Approves the sales order Shipping department: Prepares the bill of lading Billing department: Prepares the invoice

U3 B.1. Strategic Planning Question Define a master budget. Answer A master budget documents specific short-term operating performance goals for a period of time, normally one year or less. The plan generally includes an operating (nonfinancial) budget as well as a financial budget. © Becker Professional Education. All rights reserved. U3 B.1. Strategic Planning Question List Porter's five external forces that affect the competitive environment and profitability of a firm. Answer ...

U1 A.1. Financial Statements: Part 1 Question How is gross margin calculated? Answer © Becker Professional Education. All rights reserved. U1 A.1. Financial Statements: Part 1 Question Who are the primary users of general purpose financial reports? Answer Existing and potential: Investors Lenders Other creditors © Becker Professional Education. All rights reserved. U1 Page 2 of 59 FC-01519 CSO: 1A1a LOS: 1A1e #4 FC-01518 CSO: 1A1a LOS: 1A1e #3 1. 2. 3. 4. 1. 2. 3. 4. ...

Part 1 Formula Reference Guide Term Formula Unit Absorption costing equation − Revenue Less: cost of goods sold − Gross margin Less: operating expenses (both fixed and variable) Net income 2 Accounting equation (or balance sheet equation) Assets = Liabilities + Owners' equity (or stockholders' equity) 1 Asset turnover Asset turnover = Sales Assets 4 Budgeted production Budgeted sales + Desired ending inventory – Beginning inventory Budgeted production 3 Cash bu...