Wiley CPAexcel Exam Review 2022 Practice Questions: Business Environment and Concepts

2022 Wiley CPAexcel® EXAM REVIEW PRACTICE QUESTIONS BEC BUSINESS ENVIRONMENT AND CONCEPTS BOOST YOUR REVIEW WITH CPA PRACTICE QUESTIONS The Wiley CPAexcel Practice Questions four-volume set provides 2,000 multiple-choice questions (500 per part) and 20 task-based simulations (5 per part) to test your knowledge of content on all four sections of the CPA exam. The Practice Questions are the perfect companion to the Wiley CPAexcel Study Guides and are meant to reinforce this valuable study text. These practice questions map to the Wiley CPAexcel online course and are specifically designed to test your AICPA Blueprint knowledge, including how questions are worded on the CPA exam. Answer rationales so you can understand why your answer is correct Organized in sections to accompany the Wiley CPAexcel Study Guides Maps to content in the Wiley CPAexcel online course Used by leading review providers BONUS: Free 1-week access to the Wiley CPAexcel Online Test Bank for BEC (details inside the cover of this book)

Table of Contents:
Multiple Choice Questions 1 Enterprise Risk Management, Internal Controls and Business Processes 3 Internal Control Frameworks 3 Introduction to COSO, Internal Control, and the COSO Cube 3 17 Principles of Internal Control 4 Types and Limitations of Accounting Controls 4 Internal Control Roles and Responsibilities 5 Internal Control Monitoring Purpose and Terminology 5 Internal Control Monitoring and Change Control Processes 6 Enterprise Risk Management Frameworks 7 Introduction to Enterprise Risk Management: Strategy and Risk 7 ERM Components, Principles, and Terms 7 ERM Governance and Culture 7 ERM Strategy and Objective Setting 8 ERM and Performance 8 ERM Monitoring, Review, and Revision 9 ERM Communication and Reporting 9 Fraud Risk Management 9 Other Regulatory Frameworks and Provisions 10 Economics 12 Introduction to Economic Concepts 12 Microeconomics 12 Introduction and Free-Market Model 12 Demand 13 Supply 13 Market Equilibrium 13 Elasticity 14 Consumer Demand and Utility Theory 14 Inputs and the Cost of Production 15 Market Structure and Firm Strategy 15 Introduction to Market Structure 15 Perfect Competition 15 Perfect Monopoly 15 Monopolistic Competition 16 Oligopoly 16 Summary of Market Structures 16 Macroeconomics 16 Introduction to Macroeconomics 16 Aggregate Demand 17 Aggregate Supply 17 Aggregate (Economy) Equilibrium 17 Gross Measures—Economic Activity 18 Gross Measures—Employment/Unemployment 18 Business Cycles and Indicators 19 Price Levels and Inflation/Deflation 19 Money, Banking, and Monetary/Fiscal Policy 19 International Economics 20 Introduction and Reasons for International Activity 20 Issues at National Level 20 Role of Exchange Rates 21 Issues at Entity Level 21 Currency Exchange Rate Issue 21 International Transfer Price Issue 22 Globalization 22 Introduction to Globalization 22 Globalization of Trade 23 Globalization of Production 23 Globalization of Capital Markets 23 Globalization and Power Shifts 24 Becoming Global 24 Business Strategy and Market Analysis 24 Introduction to Business Strategy and Market Analysis 24 Macro-Environmental Analysis 25 Industry Analysis 25 Entity/Environment Relationship Analysis 26 Generic Strategies 26 Summary and Extensions 26 Financial Management 27 Introduction to Financial Management 27 Concepts and Tools 27 Cost Concepts 27 Time Value of Money Tools 28 Interest Rate Concepts and Calculations 28 Financial Valuation 29 Introduction to Financial Valuation 29 Valuation Techniques—General 29 Valuation Techniques—CAPM 30 Valuation Techniques—Option Pricing 30 Valuation Techniques—Business Entity 30 Hedging and Derivatives 31 Capital Budgeting 31 Introduction and Project Risk 31 Evaluation Techniques 31 Introduction and Payback Period Approach 31 Discounted Payback Period Approach 32 Accounting Rate of Return Approach 32 Net Present Value Approach 32 Internal Rate of Return Approach 33 Project Ranking 33 Capital Project Ranking Decisions 34 Financing Options 34 Introduction and Financial/Capital Structure 34 Short-Term (Working Capital) Financing 35 Introduction to Short-Term Financing 35 Payables 35 Standby Credit and Commercial Paper 35 Receivables and Inventory 35 Long-Term (Capital) Financing 36 Introduction to Long-Term Financing 36 Long-Term Notes and Financial Leases 36 Bonds 37 Preferred Stock 37 Common Stock 38 Cost of Capital and Financing Strategies 38 Working Capital Management 38 Introduction to Working Capital Management 38 Cash Management 39 Short-Term Securities Management 39 Accounts Receivable Management 39 Inventory Management 40 Current Liabilities Management 41 Ratios and Measures for Working Capital Management 41 Introduction to Ratio Analysis 41 Liquidity Measures 41 Operational Activity Measures 42 Financial Management Risk Concepts—Summary 42 Information Technology 44 Information Technology Governance 44 Risks and Controls in Computer-Based Accounting Information Systems 44 The COBIT Model of IT Governance and Management 44 Introduction to Enterprise-Wide and Cloud-Based Systems 45 IT Functions and Controls Related to People 45 Role of Information Technology in Business 45 IT and Business Strategy 45 System Types by Activity 45 System Types by Data Structure 46 Databases and Data Structures 46 Information Systems Hardware 46 Transaction Processing 47 Emerging Technologies 47 Emerging Technologies in AIS 47 Big Data 47 Data Visualization 47 Statistics in Business Analytics 48 Simple Linear Regression in Business Analytics 48 Bitcoin and Blockchain 49 Artificial Intelligence and Machine Learning 49 Information Security/Availability Protection of Information 49 IT Security Principles 49 Managing Cyber Risk: Part I—Applying COSO Principles to Cyber Risk 49 Managing Cyber Risk: Part II—A Framework for Cybersecurity 50 IT Policies 50 Introduction to E-Business and E-Commerce 51 E-Commerce Applications 51 ERM for Cloud Computing 51 Mobile Device, End-User, and Small Business Computing 52 Multi-Location System Structure 52 Computer Networks and Data Communication 52 The Internet—Structure and Protocols 53 Logical and Physical Access Controls 53 Logical Access Controls 53 Encryption and Secure Exchanges 54 System Disruption/Resolution 54  Organizational Continuity Planning and Disaster Recovery 54 Backup and Restoration 54 Computer Crime, Attack Methods, and Cyber-Incident Response 55 Processing Integrity (Input/Processing/Output Controls) 55 Program Library, Documentation and Record Management 55 Input and Origination Controls 55 Processing, File, and Output Controls 56 Accounting System Cycles 56 The Accounting System Cycle: Introduction 56 Revenue Cycle 57 Expenditure Cycle 57 Production Cycle 57 HR and Payroll Cycle 58 General Ledger, Reporting, and Financing Cycle 58 Systems Development and Maintenance 58 System Development and Implementation 58 Operations Management 59 Financial and Non-Financial Measures of Performance 59 Quality Management 59 Benchmarking, Best Practices, and the Balanced Scorecard 59 Competitive Analysis 60 Ratio Analysis 60 Risk Management 61 Performance Improvement Tools 61 Cost Accounting 61 Manufacturing Costs 61 Inventory Flow, Cost, Spoilage, Scrap 62 Cost Behavior Patterns 62 Cost-Volume-Profit Analysis 63 Absorption and Direct Costing 63 Job Costing 64 Process Costing 64 Joint and By-Product Costing 65 Sales and Direct Cost Variance Analysis 65 Overhead Variance Analysis 66 Process Management 66 Non-Routine Decisions: Relevant Costs 66 Non-Routine Decision: Special Decisions 66 Transfer Pricing 67 Activity-Based Costing and Process Management 68 Planning Techniques 69 Budgeting 69 Forecasting Techniques 70 Answers and Explanations 71 Written Communications and Task-Based Simulations 119 Economic Concepts and Analysis 121 International Economics 121 Business Strategy and Market Analysis: Generic Strategies 121 Microeconomics 123 Market Structure and Firm Strategy: Summary of Market Structure 123 Financial Management 128 Capital Budgeting 128 Evaluation Techniques: Net Present Value Approach 128 Information Technology 136 Processing Integrity (Input/Processing/Output Controls) 136 Processing, File, and Output Controls 136 Operations Management 140 Cost Accounting 140 Overhead Variance Analysis 140

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