B. Acy Bachelor of Accountancy Bachelor of Science in Accountancy: BEC 4

Question 1

Which financial ratio measures how efficiently a company collects its receivables?

Accepted Answer

Accounts receivable turnover ratio

Answer

Accounts receivable turnover (net credit sales ÷ average accounts receivable) indicates how many times per period a company collects its average receivable balance.

Question 2

In the context of IT systems, which term describes the process of converting data into an unreadable format to protect it from unauthorized access?

Accepted Answer

Encryption

Answer

Encryption transforms plaintext into ciphertext using an algorithm and key, making data unreadable without the corresponding decryption key.

Question 3

A company's degree of operating leverage (DOL) measures:

Accepted Answer

The sensitivity of operating income to changes in sales volume

Answer

DOL quantifies how a percentage change in sales translates into a percentage change in operating income (EBIT), reflecting the impact of fixed operating costs.

Question 4

Under the COSO Internal Control – Integrated Framework, which component involves policies and procedures that ensure management directives are carried out?

Accepted Answer

Control activities

Answer

Control activities are the actions established through policies and procedures that help ensure management's responses to risks are effectively carried out.

Question 5

Which monetary policy action would the Federal Reserve take to stimulate a slowing economy?

Accepted Answer

Lower the discount rate

Answer

Lowering the discount rate reduces borrowing costs for banks, encouraging them to lend more and stimulating economic activity.

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 4