The authoritative body designed to promulgate standards concerning a CPA's association with audited financial statements of an entity that is required to file financial statements with the SEC is the:

A. public company accounting oversight board.
B. financial accounting standards board.
C. auditing standards board.
D. general accounting office.


Answer: A

Business

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Morales Publishing's tax rate is 25%, its beta is 1.10, and it uses no debt. However, the CFO is considering moving to a capital structure with 30% debt and 70% equity. If the risk-free rate is 5.0% and the market risk premium is 6.0%, by how much would the capital structure shift change the firm's cost of equity?

A. 1.91% B. 2.12% C. 2.33% D. 2.57% E. 2.82%

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Scope management for a project begins with:

A) A work package. B) An organization breakdown structure. C) A statement of goals. D) A configuration statement.

Business

In a successful ________ strategy, the trade-offs between differentiation and low cost are reconciled.

A. divestment B. focused differentiation C. blue ocean D. liquidation

Business

For which of the following projects would an ad agency most likely develop a dummy?

A. an interstate billboard for a local radio station B. a magazine ad for Healthy Choice frozen meals C. a radio ad for Olive Garden restaurants D. a television ad for Pepperidge Farms products E. a point-of-purchase display for Claritin allergy medication

Business