B. Acy Bachelor of Accountancy Bachelor of Science in Accountancy: BEC 3

Question 1

Which of the following best describes the 'matching concept' as it applies to financial management decisions?

Accepted Answer

Financing long-term assets with long-term capital sources

Answer

In financial management, the matching principle means funding permanent or long-term assets with long-term debt or equity rather than short-term sources.

Question 2

A company operating in a perfectly competitive market will maximize profit by producing at the output level where:

Accepted Answer

Marginal cost equals marginal revenue

Answer

Profit maximization occurs at the quantity where MC = MR; in perfect competition MR equals market price, so firms produce where MC = P.

Question 3

Enterprise Risk Management (ERM) frameworks typically categorize risks into which major types?

Accepted Answer

Financial, operational, strategic, and compliance risks

Answer

COSO's ERM framework classifies risk objectives—and thus risk categories—as strategic, operations, reporting, and compliance, commonly summarized as strategic, operational, reporting, and compliance risks.

Question 4

When a company uses the internal rate of return (IRR) method, a project is acceptable if:

Accepted Answer

IRR exceeds the required rate of return (hurdle rate)

Answer

If IRR exceeds the hurdle rate (cost of capital), the project generates returns above the minimum required and should be accepted.

Question 5

Which type of e-commerce model describes transactions between a business and its suppliers or other businesses?

Accepted Answer

B2B (business-to-business)

Answer

B2B e-commerce involves commercial transactions conducted electronically between companies, such as a manufacturer purchasing raw materials online from a supplier.

B. Acy Bachelor of Accountancy Practice Test

B. Acy Bachelor of Accountancy Practice Test

B. Acy Bachelor of Accountancy Bachelor of Science in Accountancy: BEC 3