CPA BEC EXAMS BUNDLE

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 Eli...

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 ...

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 s...

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 Arti...

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* I...

CPA Exam BEC Equations

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 re...

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 ...

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 - ANSW...

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...

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 Com...

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 Entit...

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 ...

CPA Exam - BEC - Enterprise Risk Management