Ethansmile

CPA BEC Test 1 B - ANSWER-When calculating the cost of capital, the cost assigned to retained earnings should be A. Zero. B. Lower than the cost of external common equity. C. Equal to the cost of external common equity. D. Higher than the cost of external common equity. D - ANSWER-Which of the following is the most expensive form of additional capital? A. New debt. B. New preferred stock. C. Retained earnings. D. New common stock. B - ANSWER-Which of the following is not a com...

CPA Exam - BEC - Enterprise Risk Management

BEC CPA Exam Formulas/Ratios Stated Interest Rate/ SAR/ Nominal Int. Rate - ANSWER-no calculation needed! EIR (effective int. rate) - ANSWER-EIR= Int. paid per period/net loan proceeds =((P*SAR)/#ofperiods)/net loan proceeds net loan proceeds= loan proceeds - compensating balance APR (annual percentage rate) - ANSWER-APR= EIR * periods in a year EAR (effective annual percentage rate) - ANSWER-EAR = (1 + EIR) -1 = (1 + (i/P)) ^P - 1 = ( (1+SR)/#ofperiods)^#ofperiods...

CPA Exam - BEC Strategic Planning - ANSWER-The sequence of interrelated procedures for determining an entity's long-term goals and identifying the best approaches for achieving those goals Mission statement - ANSWER-An expression of the purpose and range of activities of the entity Entity values - ANSWER-The underlying beliefs that govern the operations of an entity and the conduct of its relationship with other parties Objectives - ANSWER-The desired, measurable results the entit...

BEC CPA Exam (Module 1) 3 Categories of Objectives within the COSO framework - ANSWER-ORC 1. Operations 2. Reporting (focus of COSO) 3. Compliance 5 Components of Internal Control - ANSWER-CRIME (applies to all 3 objectives) Control Environment Risk Assessment Information and Communication Monitoring Existing Control Activities Control Environment (CRIME) - 5 principles - ANSWER-EBOCA Ethics Board independence Organizational Structure Commitment to Competence A...

BEC CPA EXAM Acronyms Internal Control Components - ANSWER-CRIME 1. Control environment 2. Risk assessment 3. Information and communication 4. Monitoring 5. Existing control activities Categories of Objectives - ANSWER-ORC 1. Operations 2. Reporting 3. Compliance Principles of Control Environment - ANSWER-EBOCA 1. Ethics and Integrity 2. Board Independence and Oversight 3. Organizational Structure 4. Commitment to competence 5. Accountability Principles of Risk A...

CPA BEC Formulas Weighted Average Cost of Capital - ANSWER-(Cost of Equity x % Equity in Cap Structure) + (Weighted Average Cost of Debt x % of Debt in Cap Structure) Weighted Average Cost of Debt - ANSWER-Effective Annual Interest Payments / Debt Outstanding After Tax Cost of Debt - ANSWER-Pretax Cost of Debt x (1 - Tax Rate) Cost of Preferred Stock - ANSWER-Preferred Stock Dividends / Net Proceeds of Preferred Stock CAPM (Cost of Retained Earnings) - ANSWER-Risk-Free Rate + (B...

CPA Exam- BEC Formulas Effective Annual Interest Rate - ANSWER-The stated interest rate adjusted for the number of compounding periods per year Simple Interest - ANSWER-I=prt Compound Interest - ANSWER-interest calculated on both the principal and the accrued interest Required Rate of Return - ANSWER-Nominal RF rate + Sum of Risk Premiums Nominal Rate of Return - ANSWER-Real Rate of return + Inflation Premium Weighted Average Cost of Capital (WACC) - ANSWER-the weighted avera...

CPA Exam (BEC B1) Board of Directors - ANSWER-Safeguard co assets and maximize SH return. They have no individual authority and can only act as a group if theres a quorum (majority). Makes them duly constituted. BOD duties: -electing, removing, supervising officers -adopting, amending, and repealing bylaws -setting mgmt comp -initiating fundamental changes to the corp's structure BOD has sole auth to declare dists (divs) of cash/prop/shares. Liab hits books when div is declared. ...

CPA Exam BEC Equations

CPA - BEC - Becker 6 (Information Technology and Process Management) Business Process Management (BPM) - ANSWER-Management approach that seeks to coordinate the functions of an organization toward an ultimate goal of continuous improvement in customer satisfaction *Plan, do, check, act* Incremental change Business Process Management Activities (5) - ANSWER-1. *Design* (how processes should function). 2. *Modeling* (what-if analysis). 3. *Execution* (implementation and key success...

BEC CPA Exam Notes SU 1 (18% of test) - ANSWER-Corporate Governance Basic Corporate Documents - ANSWER-Articles of Incorporation: Corp's name, # Share authorized, Address of Registered Office, Name of Registered Agent, Name and Address of each incorporator Filed with secretary of state Articles of Incorporation are general. Bylaws: contain information about managing affairs of corporation. Bylaws are detailed. Common and Preferred Shareholders - ANSWER-Common have contributed basic ...

CPA EXAM BEC Sole Proprietorship - ANSWER--Only one owner -Business is not a separate legal entity apart from owner -Owner does not share decision making power with others Advantages over other business structures - ANSWER--Simplest to form (no formal filings) and operate -Business can be sold without approval from others -Owner has right to make all business decisions -No need to share profits -Profits are taxed only once Disadvantages over other business structures - ANSWER--If ...

CPA BEC EXAM Demand Elastic means - ANSWER-large ∆ in demand when there is a small ∆ in price Price Elasticity of Demand Formula - ANSWER-%∆in quantity demanded / %∆in Price Demand becomes _________ elastic over time - ANSWER-more Goverment actions that affect market equilibrium - ANSWER-price ceiling cost floor (cause qty supplied to exceed qty demanded) a demand curve shifts _________ whereas a supply curve shifts ______ - ANSWER-up/down outward/inward diseconomies ...

BEC CPA Exam COSO Framework assists Management and the Board of Directors by: - ANSWER-Effectively applying Internal Control Determining the requirements of an effective system Allow judgement and flexibility in the design of I/C Identify and analyze risks, and develop effective responses Eliminate redundant, ineffective, or inefficient controls Extend I/C application beyond financial reporting Three Objective of COSO Framework - ANSWER-Operations, Reporting, Compliance Objectives ...

BEC CPA Exam Review Demand Curve Shift Upward (direct relationship-positive shift) - ANSWER-The price of subsitute goods, expectations of price changes, income for normal goods, and extent of market Demand Curve Shift Downward (inverse relationship-neg. shift) - ANSWER-The price of complement good, income for inferior goods, and consumer boycotts SWOT analysis - ANSWER-strengths, weaknesses, opportunities, threats Three common measures of price inflation: - ANSWER-1. The Consumer Pri...

ANTH EXAMS BUNDLE

Anth-1: Exam 1 Study Guide How many sub disciplines can anthropology be divided into? What are they? - ANSWER-4 sub disciplines - biological anthropology -cultural anthropology -linguistic anthropology -archeology What is academic anthropology - ANSWER-Learning as an end goal; connected with academic institutions; driven by answering questions What is applied anthropology? - ANSWER-"Real world" questions and problems;driven by problem solving or seeking to improve or mediate a s...

ANTH Exam 1 What are the 4 fields of anthropology, and what do they consist of? Why is a four-field (or holistic) approach important? - ANSWER-Cultural ANTH- Importance of participant observation in producing ethnography. Lives of people within their communities Physical ANTH- Paleoanthropology and Primatology Archaeological ANTH- Prehistoric and Historic Linguistic ANTH- Descriptive, Historical, and Sociological What is ethnography? - ANSWER-The study and analysis of different cu...

ANTH 110 EXAM 1 Absolute Dating Technique - ANSWER-establish dates in numbers or ranges of numbers; radiometric methods radiocarbon or carbon-14 dating (14C) (best known) or potassium-argon dating (K-Ar); measures time it takes for one element or isotope to decay into another element or isotope Alfred Russell Wallace - ANSWER-Natural Selection (evolution); independently reached same conclusions as Darwin Alleles - ANSWER-variations of genes Anthropoids - ANSWER-two categories-primate...