CPA EXAM @x
Exam Solution@x
CPA BEC Review 2026 A+ GRADE ASSURED COMPLETE
@x @x @x @x @x @x @x @x
SOLUTIONS AND VERIFIED ANSWERS (8B8DF) @x @x @x @x
QUESTION 1 @x
The Sarbanes-
@x
Oxley Act of 2022 provides that the accounting firm of an issuer reports directly to:
@x @x @x @x @x @x @x @x @x @x @x @x @x @x
ANSWER
the audit committee
@x @x
QUESTION 2 @x
If wine price is 2.5, wine price is:
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ANSWER
Elastic
QUESTION 3 @x
when demand in price is elastic, an increase in price results in:
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ANSWER
a decrease in quantity demanded
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QUESTION 4 @x
When demand is price elastic, an increase in price will (increase/decrease) total reve
@x @x @x @x @x @x @x @x @x @x @x @x
nue
ANSWER
decrease
,QUESTION 5 @x
According to COSO, what component of the internal control integrated framework ad
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dresses an entity's financial reporting competencies?
@x @x @x @x @x
ANSWER
Control environment @x
QUESTION 6 @x
What do transaction logs include?
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ANSWER
All transactions, including payments made to a vendor, that have been processed against the maste
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r files.
@x
QUESTION 7 @x
An accounts payable clerk is accused of making unauthorized changes to preview pay
@x @x @x @x @x @x @x @x @x @x @x @x
ments to a vendor. Where would you look to uncover proof?
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ANSWER
Transaction logs @x
QUESTION 8 @x
Which one of the following is an example of JIT being used for competitive advantage
@x @x @x @x @x @x @x @x @x @x @x @x @x @x
? Why?
@x
A) Increase the number of suppliers to be less dependent on just a few
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B) Decrease the number of job classifications to just a few
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C) Only specially trained maintenance employees are able to address machine breakd
@x @x @x @x @x @x @x @x @x @x @x
owns
D) Build a new, huge warehouse to store inventory
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ANSWER
B - more efficient use of employees with multiple skills
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QUESTION 9 @x
Who sets the discount rate and required reserve ratio? What are they an example of?
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ANSWER
The federal reserve - monetary policies
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, QUESTION 10 @x
What actions can the federal movement take to stimulate the economy?
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ANSWER
Decrease consumer taxes and increase government spending
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QUESTION 11 @x
A preferred stock is sold for $101 per share, has a face value of $100 per share, und
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erwriting fees of $5 per share, and annual dividends of $10 per share. If the tax rate
@x @x @x @x @x @x @x @x @x @x @x @x @x @x @x @x @
is 40%, the cost of funds for preferred stock is:
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ANSWER
10.4% ( $10 / (101-5)) = 10.4%
@x @x @x @x @x @x
QUESTION 12 @x
According to COSO, what component of ERM addresses an entity's process for establis
@x @x @x @x @x @x @x @x @x @x @x @x
hing the likelihood and impact of events?
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ANSWER
Performance
QUESTION 13 @x
Why does Strategy and objective-
@x @x @x @x
setting not include a determination of the impact or likelihood of events?
@x @x @x @x @x @x @x @x @x @x @x
ANSWER
Because it only includes elements that relate to risk appetite
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QUESTION 14 @x
What system is used for payroll?
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ANSWER
Transaction processing system (TPS)@x @x @x
QUESTION 15 @x
What is the calculation for total manufacturing costs?
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Exam Solution@x
CPA BEC Review 2026 A+ GRADE ASSURED COMPLETE
@x @x @x @x @x @x @x @x
SOLUTIONS AND VERIFIED ANSWERS (8B8DF) @x @x @x @x
QUESTION 1 @x
The Sarbanes-
@x
Oxley Act of 2022 provides that the accounting firm of an issuer reports directly to:
@x @x @x @x @x @x @x @x @x @x @x @x @x @x
ANSWER
the audit committee
@x @x
QUESTION 2 @x
If wine price is 2.5, wine price is:
@x @x @x @x @x @x @x
ANSWER
Elastic
QUESTION 3 @x
when demand in price is elastic, an increase in price results in:
@x @x @x @x @x @x @x @x @x @x @x
ANSWER
a decrease in quantity demanded
@x @x @x @x
QUESTION 4 @x
When demand is price elastic, an increase in price will (increase/decrease) total reve
@x @x @x @x @x @x @x @x @x @x @x @x
nue
ANSWER
decrease
,QUESTION 5 @x
According to COSO, what component of the internal control integrated framework ad
@x @x @x @x @x @x @x @x @x @x @x
dresses an entity's financial reporting competencies?
@x @x @x @x @x
ANSWER
Control environment @x
QUESTION 6 @x
What do transaction logs include?
@x @x @x @x
ANSWER
All transactions, including payments made to a vendor, that have been processed against the maste
@x @x @x @x @x @x @x @x @x @x @x @x @x @x
r files.
@x
QUESTION 7 @x
An accounts payable clerk is accused of making unauthorized changes to preview pay
@x @x @x @x @x @x @x @x @x @x @x @x
ments to a vendor. Where would you look to uncover proof?
@x @x @x @x @x @x @x @x @x @x
ANSWER
Transaction logs @x
QUESTION 8 @x
Which one of the following is an example of JIT being used for competitive advantage
@x @x @x @x @x @x @x @x @x @x @x @x @x @x
? Why?
@x
A) Increase the number of suppliers to be less dependent on just a few
@x @x @x @x @x @x @x @x @x @x @x @x @x
B) Decrease the number of job classifications to just a few
@x @x @x @x @x @x @x @x @x @x
C) Only specially trained maintenance employees are able to address machine breakd
@x @x @x @x @x @x @x @x @x @x @x
owns
D) Build a new, huge warehouse to store inventory
@x @x @x @x @x @x @x @x
ANSWER
B - more efficient use of employees with multiple skills
@x @x @x @x @x @x @x @x @x
QUESTION 9 @x
Who sets the discount rate and required reserve ratio? What are they an example of?
@x @x @x @x @x @x @x @x @x @x @x @x @x @x
ANSWER
The federal reserve - monetary policies
@x @x @x @x @x
, QUESTION 10 @x
What actions can the federal movement take to stimulate the economy?
@x @x @x @x @x @x @x @x @x @x
ANSWER
Decrease consumer taxes and increase government spending
@x @x @x @x @x @x
QUESTION 11 @x
A preferred stock is sold for $101 per share, has a face value of $100 per share, und
@x @x @x @x @x @x @x @x @x @x @x @x @x @x @x @x @x
erwriting fees of $5 per share, and annual dividends of $10 per share. If the tax rate
@x @x @x @x @x @x @x @x @x @x @x @x @x @x @x @x @
is 40%, the cost of funds for preferred stock is:
x @x @x @x @x @x @x @x @x @x
ANSWER
10.4% ( $10 / (101-5)) = 10.4%
@x @x @x @x @x @x
QUESTION 12 @x
According to COSO, what component of ERM addresses an entity's process for establis
@x @x @x @x @x @x @x @x @x @x @x @x
hing the likelihood and impact of events?
@x @x @x @x @x @x
ANSWER
Performance
QUESTION 13 @x
Why does Strategy and objective-
@x @x @x @x
setting not include a determination of the impact or likelihood of events?
@x @x @x @x @x @x @x @x @x @x @x
ANSWER
Because it only includes elements that relate to risk appetite
@x @x @x @x @x @x @x @x @x
QUESTION 14 @x
What system is used for payroll?
@x @x @x @x @x
ANSWER
Transaction processing system (TPS)@x @x @x
QUESTION 15 @x
What is the calculation for total manufacturing costs?
@x @x @x @x @x @x @x
