ACCT 574 DEVRY FINAL EXAM (2 DIFFERENT VERSIONS)
Create successful ePaper yourself
Turn your PDF publications into a flip-book with our unique Google optimized e-Paper software.
<strong>ACCT</strong> <strong>574</strong> <strong>DEVRY</strong> <strong>FINAL</strong> <strong>EXAM</strong> (2 <strong>DIFFERENT</strong><br />
<strong>VERSIONS</strong>)<br />
Downloading is very simple, you can download this Course here:<br />
http://mindsblow.us/question-details/<strong>ACCT</strong>-<strong>574</strong>-DeVry-Final-Exam-2-Different-Versions/4318<br />
Or<br />
Contact us at:<br />
SUPPORT@WISEAMERICAN.US<br />
<strong>ACCT</strong> <strong>574</strong> DeVry Final Exam (2 Different Versions)<br />
<strong>ACCT</strong><strong>574</strong><br />
<strong>ACCT</strong> <strong>574</strong> DeVry Final Exam (2 Different Versions)<br />
(Version 1)<br />
1.(TCO A) COSO defines “internal controls” as a process, effected by an entity’s board of directors,<br />
management, and other personnel, designed to provide reasonable assurance regarding the<br />
achievement of objectives in the following categories except<br />
2. (TCO A) Which of the following is a type of brainstorming?<br />
3. (TCO A) Implementing a code of ethics is a Sarbanes-Oxley requirement related to which component<br />
of the management process?<br />
4. (TCO A) Which statement is false?<br />
5. (TCO A) Under the “KPMG” categories of fraud, what would probably not be an external fraud?<br />
6. (TCO A) An AICPA committee in 1986 broke forensic accounting into two broad areas:<br />
7. (TCO A) Peremptory refers to:<br />
8. (TCO B) Which is a unique factor for solving a white-collar crime?<br />
9. (TCO B) You are told that a company has a 30% profit margin and the discovered fraud has caused<br />
$2,400,000 more needed revenue to cover the fraud. How much was stolen?
10. (TCO B) Which would not be a direct IRS method for reconstructing taxable income?<br />
11. (TCO B) Lapping is defined as:<br />
12. (TCO B) Which statement is false?<br />
13. (TCO B) Money launderers prefer to establish business relationships with a company whose<br />
operations are characterized by:<br />
14. (TCO B) Which one of the following is the easiest to falsify?<br />
15. (TCO B) Which of the following activities would not be considered a likely “red flag” to possible money<br />
laundering activities?<br />
16. (TCO B) One of the most important legislative acts restricting the activities of money launderers in<br />
recent years is the:<br />
17. (TCO C) Which statement is false?<br />
18. (TCO C) Which of the following is not an example of demonstrative evidence?<br />
19. (TCO C) Which would not be a type of evidence?<br />
20. (TCO C) Which statement is false?<br />
21. (TCO C) Which statement is false?<br />
22. (TCO C) Which is an inductive approach?<br />
23. (TCO C) Which statement is false about Benford’s Law?<br />
24. (TCO D) In tort cases, damages are determined based on the concept that:<br />
25. (TCO D) In order to win damages in a case, generally a plaintiff must prove:<br />
(Version 2)<br />
1. (TCO D) Beth Company sold assets to Karen Company with an alleged value of $2,400,000. Beth<br />
Company paid $2,100,000 for the assets. The actual value of the assets was $1,700,000. Using the<br />
“benefit-of-the-bargain” damage loss rule, the fraud damages would be:<br />
2. (TCO D) Jones Lumber had an exclusive five-year supply agreement with Wood Construction. The<br />
contract called for lumber sales of $2,000,000 per year. After two years, Wood Construction canceled the<br />
contract without cause. The court found Wood Construction liable under the contract. Jones Lumber had
average gross margins of 45% and average net income of 10% of sales. Jones Lumber’s operating<br />
expenses average 60% fixed. The damages from the loss of this contract would be:<br />
3. (TCO D) Georgetown Company’s weekly store operating costs for a 10-week period had a high value<br />
of $300,000 and a low value of $260,000. Sales volumes for the two weeks were $4,000,000 and<br />
$3,200,000 respectively. The estimated variable cost per dollar of sales using the high-low method is:<br />
4. (TCO D) Antitrust laws were enacted to:<br />
5. (TCO D) The present value of the damages in a wrongful death case:<br />
6. (TCO D) In determining damages in a wrongful discharge case, the concept of mitigation of wages<br />
refers to:<br />
7. (TCO E) What are the dates found on an electronic file?<br />
8. (TCO E) Datagrams are<br />
9. (TCO E) When a suspect’s PC is disconnected, all the following data is lost, except<br />
10. (TCO E) The Securities and Exchange Commission recommended the internal control framework<br />
used by which of the following organizations?<br />
11. (TCO E) For forensic accountants, it is important to understand the Internet’s protocols so that they:<br />
12. (TCO E) To trace an IP address back to its source address, which of the following tools would be best<br />
to use?<br />
13. (TCO E) Actually “deleting” data from a hard drive means:<br />
14. (TCO F) Unavailability losses occur because of:<br />
15. (TCO F) Of the following losses from a cyber attack on electronic systems, which is likely to be the<br />
most costly to a software company?<br />
16. (TCO F) A zone transfer allows the hacker to get a list of:<br />
17. (TCO F) In real option analysis, there needs to be a(n):<br />
18. (TCO F) BassFishing.com had its website shut down for two days due to a cyber attack. During that<br />
period, it is estimated that 300 customers were permanently lost. Registered customers visit once a<br />
month, on average, spend $15 on each visit, and remain registered for three years. What is the sales loss<br />
for BassFishing assuming a cost of capital of 6%?
19. (TCO F) Determine the value of the option for the Bayer Company by delaying its investment for one<br />
year. Consider the value of the option is the difference between traditional present value analysis and real<br />
option analysis. The initial investment is for $700,000, but the investment will not be made until next year.<br />
The investment is being delayed so that Bayer’s management can better determine the market for its<br />
product. There are two alternatives for sales in the next year of $1,000,000 or $800,000. Each sales level<br />
has an occurrence probability of 50%. The cost of capital for Bayer is 8%. If traditional present value<br />
analysis shows that the net present value of the project is $75,000, what is the value of the option (the<br />
ability to wait one year before executing or abandoning the project)?<br />
20. (TCO G) One/some of the most important IRS guidelines for gift and estate tax purposes:<br />
21. (TCO G) The “cost approach” to business valuation involves:<br />
22. (TCO G) The Indy Company experiences the following annual incomes over the last five years:<br />
$60,000, $70,000, $110,000, $150,000, $160,000 (from oldest to most current). A firm like Indy Company<br />
commands a 10% discount rate and a price earnings ratio of 10. Using a non-weighted earnings model,<br />
what is the value of the firm?<br />
23. (TCO G) “Equitable distribution” in divorce cases is driven by:<br />
24. (TCO G) A 100% controlling interest in a business:<br />
25. (TCO G) Goodfood Products produces breakfast cereal. The company’s weighted average cost of<br />
capital is 15%. The company forecasted the following free cash flows for the next 20 years.<br />
Year………………………….Free Cash Flows<br />
1……………………………… $10,000,000<br />
2…………………………………15,000,000<br />
3…………………………………20,000,000<br />
4…………………………………22,000,000<br />
5…………………………………25,000,000<br />
6-10…………………………….20,000,000 per year<br />
11-20…………………………..15,000,000 per year
Use the discounted cash flow approach to value the Goodfood Products Company. Note – you will need a<br />
present value table or a financial calculator to solve this problem.<br />
1. (TCO F) Define a real option. Why is there any value attributed to a real option?<br />
2. (TCO G) Why would a forensic accountant need to perform a business valuation? Can people not just<br />
look up the value at a particular date on the appropriate stock exchange? Explain.<br />
3. (TCO D) What three elements must be proven to win in a fraud dispute? Explain.