FREE Bachelor of Science in Accountancy: BEC Questions and Answers

Question 1

Which of the following statements on enterprise risk management addresses a company's adherence to fundamental principles as per the Committee of Sponsoring Organizations (COSO) of the Treadway Commission?

Accepted Answer

Governance and Culture

Answer

Performance

Answer

Communication Strategy

Answer

Mission statement

Question 2

Interest will accrue at a specified rate of 8% for a promissory note for $20,000 and be paid in two equal installments. The state levies a documentation tax of $50 and a loan origination cost of $100.
Which yearly percentage rate is it?

Accepted Answer

8.10%

Answer

7.96%

Answer

8%

Answer

8.06%

Question 3

The price of the company's common stock is 9.4%, the price of its preferred stock is 7.8%, and the weighted interest rate on its debt is 5%. Assume that each element of the capital structure has a market value proportion of 55% common stock, 20% preferred stock, and 25% debt. 30% is the business tax rate.

What is the Weighted Average Cost of Capital (WAAC) for BDE Company?

Accepted Answer

7.78%

Answer

7.24%

Answer

7.52%

Answer

8.21%

Question 4

True or False: When performing financial analysis at year's end, a corporation wishes to have a high quick ratio?

Accepted Answer

True

Answer

False

Question 5

Each year, EDF Corp. sells 5,000 widgets. The widgets are produced in 1,000-unit batches and require a 4-week lead time. Additionally, EDF Corp. has an 800-piece safety supply as a bare minimum.
Calculate the widget reorder point for EDF Corp. assuming a 50-week year and continuous demand.

Accepted Answer

1,400

Answer

1,800

Answer

1,500

Answer

3,200

Question 6

Which of the following scenarios would cause a corporation to lower its average level of inventory?

Accepted Answer

The cost of carrying inventory

Answer

The annual demand for the product

Answer

The lead time needed to acquire inventory

Answer

The cost of placing an order

Question 7

True or False: Process costing is a technique for calculating product costs that averages expenses across a large number of similar items?

Accepted Answer

True

Answer

False