Business Environment & Concepts (BEC) AICPA Released Questions - 2022

Business Environment & Concepts

(BEC)

AICPA

Released Questions 2022

Material from Uniform CPA Examination Selected Questions

and Unofficial Answers, 2022, copyright ?? by American Institute

of Certified Public Accountants, Inc., is reprinted and/or

adapted with permission

Note: Any knowing solicitation or disclosure of any questions or

answers included on any CPA examination is prohibited

Multiple Choice Question #1:

Lightning E-Retailing maintains a virtual inventory. When a customer orders an item, the system

contacts the firm's suppliers, who then deliver the goods required to Lightning the next day.

This practice is facilitated most by which of the following technologies?

A.

Electronic funds transfer.

B.

Electronic data interchange.

C.

Client-server.

D.

Wide area network.

Correct Answer: B

1

Multiple Choice Question #2:

Freemont, Inc. plans to offer a bond issue but first wants to estimate the cost of debt capital.

The corporation plans to issue 2,000 bonds at 7% with $1,000 face value. Freemont's

investment bankers estimate the market rate to be 7% when the corporation issues its bonds.

Freemont's effective tax rate is 37%. What percentage is the estimated cost of debt capital of

Freemont's planned issuance?

A.

2.59%

B.

4.41%

C.

7.00%

D.

8.82%

Correct Answer: B

2

Multiple Choice Question #3:

Which of the following statements about an organization's value chain is correct?

A.

The value chain considers only the internal processes of a company.

B.

The value chain consists of the major value-added functions for an organization.

C.

The value chain is not concerned with postproduction functions.

D.

The value chain is not concerned with preproduction functions.

Correct Answer: B

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