HJCPA BEC POP QUIZ ANSWERS.docx

1、HJCPA BEC POP QUIZ ANSWERSHJCPA BEC POP QUIZS ANSWERSBEC - Economic Concepts: Microeconomics20th July, 2012Question 1:Which of the following is not a characteristic of a free-market economy? A. Economic decisions are made by individual decision makers.B. There is an interdependent relationship betwe

2、en individual consumers and business firms.C. Economic resources are unlimited.D. What gets produced depends on the preferences of end-use consumers. The correct answer is C.A. Incorrect. In a free-market economy, economic decisions are made by individual decision makers, not by government.B. Incorr

3、ect. There is an interdependent relationship between individual consumers and business firms. Individuals depend on businesses for income and for goods and services. Businesses depends on individuals for economic resources (inputs) and as buyers of its goods and services (outputs).C. Correct! Under

4、any economic system, economic resources - labor, capital, and natural resources - are scarce.D. Incorrect. What gets produced in a free-market economy does depend on the preferences (needs and wants) of consumers who have the ability to pay for goods and services. Question 2:Which one of the followi

5、ng factors would not cause an increase in the supply curve of a commodity?A. Improvements in related technology.B. A decrease in the cost of production inputs.C. An increase in the number of manufacturers of the commodity.D. An increase in the price of the commodity. The correct answer is D.A. Incor

6、rect. Improvements in technology for the production of a commodity reduce the per-unit cost of production, which would shift the supply curve downward and to the right, resulting in an increase in the supply curve.B. Incorrect. A decrease in the cost of production inputs will reduce the per unit cos

7、t of production, causing a shift in the supply curve downward and to the right, resulting in an increase in the supply curve.C. Incorrect. An increase in the number of manufacturers of a commodity will increase the market supply of the commodity, resulting in an increase in the supply curve.D. Corre

8、ct! A change in price changes the quantity supplied, which is a movement along a supply curve, not a shift in the supply curve. An increase in the price of a commodity would increase the quantity supplied, but would not shift the supply curve. Question 3:Which one of the following statements regardi

9、ng periods of analysis is correct?A. Short-run analysis assumes that all inputs can be varied.B. Long-run analysis assumes that all inputs can be varied.C. Short-run analysis assumes that all inputs are fixed.D. Long-run analysis assumes that all inputs are fixed. The correct answer is B.A. Incorrec

10、t. In the short run, it is assumed that one or more inputs to the production process are fixed, i.e., cannot be varied. In the short run, many inputs to the production process can be varied, including labor and raw materials, but at least one factor is assumed to be fixed. Typically, the number and

11、size of production facilities are assumed to be fixed.B. Correct! In the long run, it is assumed that all inputs to the production process can be varied, including the number and size of production facilities.C. Incorrect. In the short run, it is assumed that most inputs are variable and that only s

12、ome inputs are fixed. Neither short-run nor long-run analysis assumes all inputs are fixed.D. Incorrect. In the long run, it is assumed that all inputs to the production process are variable, not fixed. Neither short-run nor long-run analysis assumes that all inputs are fixed. Question 4:Which one o

13、f the following would not cause an increase in demand for a commodity?A. An increase in the number of consumers.B. An increase in the price of a substitute commodity.C. An increase in consumers preference for the commodity.D. A reduction in the price of the commodity. The correct answer is D.A. Inco

14、rrect. An increase in the number of consumers for a commodity changes the demand for the commodity, which will move the demand curve upward and to the right. A greater quantity would be demanded at any given price.B. Incorrect. An increase in the price of a substitute commodity changes the demand fo

15、r the commodity, moving the demand curve upward and to the right. An increase in the price of a substitute commodity would cause more of a commodity to be demanded at any given price. As the price of the substitute commodity increases, consumers would demand less of the substitute commodity and more

16、 of the referent commodity.C. Incorrect. An increase in consumers preference for a commodity changes the demand for the commodity, moving the demand curve upward and to the right. Since more consumers prefer the commodity, more of the commodity would be demanded at any given price.D. Correct! A redu

17、ction in price will not cause an increase in demand for a commodity, but rather will change (increase) the quantity demanded. An increase in demand causes a shift of the demand curve (up and to the right). A change in price causes movement along a specific demand curve. Question 5:When the cost of i

18、nput factors to the production process increases, which one of the following will occur?A. The demand curve will shift outward.B. The supply curve will shift outward.C. The demand curve will shift inward.D. The supply curve will shift inward. The correct answer is D.A. Incorrect. An increase in the

19、cost of input factors to the production process will not cause a change in the demand curve; it will not shift outward (or inward). An increase in the cost of input factors to the production process will cause the supply curve to shift inward.B. Incorrect. An increase in the cost of input factors to

20、 the production process will not cause the supply curve to shift outward, but rather inward.C. Incorrect. An increase in the cost of input factors to the production process will not cause a change in the demand curve; it will not shift inward (or outward). An increase in the cost of input factors to

21、 the production process will cause the supply curve to shift inward.D. Correct! An increase in the cost of input factors to the production process will cause the supply curve to shift inward. An increase in input costs will cause the per-unit cost to increase and the supply curve will shift upward a

22、nd to the left (inward).20th June, 2012BEC: Corporate Governance and Internal ControlQuestion 1:Which component of the COSO ERM framework is concerned with managements decision to avoid, accept, reduce, or share risk and to develop a set of actions to align risk with the entitys risk preferences?A.

23、Control activities.B. Event identification.C. Risk assessment.D. Risk response. The correct answer is D.A. Incorrect. Control activities do not include managements decision to avoid, accept, reduce, or share risk and to develop a set of actions to align risk with the entitys risk preferences.B. Inco

24、rrect. Event identification does not include managements decision to avoid, accept, reduce, or share risk and to develop a set of actions to align risk with the entitys risk preferences.C. Incorrect. Risk assessment does not include managements decision to avoid, accept, reduce, or share risk and to

25、 develop a set of actions to align risk with the entitys risk preferences.D. Correct! Risk response does include managements decision to avoid, accept, reduce, or share risk and to develop a set of actions to align risk with the entitys risk preferences. Question 2:Milo Corp. maintains daily backups

26、 of its accounting system in a fireproof vault in the file library. Weekly, monthly, and annual backups are stored in a secure, fireproof vault at an off-site location. Maintenance of the backup files is an example of A. A detective control. B. A feedback control. C. A corrective control.D. A preven

27、tive control. The correct answer is C.Incorrect. Detective controls allow the user to determine that an error or problem has occurred. Detective controls are always paired with corrective controls.B. Incorrect. Feedback controls provide results of operations or activities, which are then compared to

28、 planned results.C. Correct! Corrective controls allow the user to recover from a problem once it has been identified.D. Incorrect. Preventive controls are designed to stop errors and irregularities from occurring. Question 3:Which of the following is not a major step in the COSO model of control mo

29、nitoring? A. Establish a foundation for monitoring.B. Establish a baseline of an internal control known to be effective.C. Design and execute monitoring procedures.D. Assess and report control evaluation results. The correct answer is B.A. Incorrect. Establishing a foundation for monitoring is the f

30、irst step in the COSO model of control monitoring.B. Correct! Establishing a baseline of known control effectiveness is part of the process of establishing a foundation for monitoring. Hence, it is a sub-activity, rather than a major step, in the COSO model of control monitoring.C. Incorrect. Design

31、ing and executing monitoring procedures is the second major step in the COSO model of control monitoring. Hence, this is not the best answer.D. Incorrect. Assessing and reporting control of evaluation results is the third and final major step in the COSO model of control monitoring. Hence, this is n

32、ot the best answer. Question 4:According to COSO, the use of ongoing and separate evaluations to identify and address changes in internal control effectiveness can best be accomplished in which of the following stages of the monitoring-for-change continuum?A. Control baseline.B. Change identification. C. Change management.D. Control revalidation/update. The correct answer is B.A. Incorrect. Establishing a control baseline is not t