Which of the following should an organization consider when developing strategic
objectives for its business processes?
1.Contribution to the success of the organization.
2.Reliability of operational information.
3.Behaviors and actions expected of employees.
4.How inputs combine with outputs to generate activities.

• A.1 and 3 only
• B.2 and 4 only
• C.3 and 4 only
• D.1 and 2 only

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General sales taxes tend to be regressive with respect to income because:

• A.A larger portion of a lower income person's income is subject to the tax.
• B.A smaller portion of a lower income person's income is subject to the tax.
• C.The tax rate is higher for person with lower income.
• D.The tax claims an increasing amount of income as income rises.

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The entity has return on assets of:

• A.21.1%
• B.39.2%
• C.42.1%
• D.45.3%

Correct Answer: A

The return on assets is the ratio of profit to total assets. It equals 21.1% US $200 profit
$950 total assets). An entity's financial statements for the current year are presented below:

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An organization has instituted a bring-your-own-device (BYOD) work environment. Which of the following policies best addresses the increased risk to the organization's network incurred by this environment?

• A.Use management software scan and then prompt parch reminders when devices connect to the network
• B.Limit the use of the employee devices for personal use to mitigate the risk of exposure to organizational data.
• C.Ensure that relevant access to key applications is strictly controlled through an approval and review process.
• D.Institute detection and authentication controls for all devices used for network connectivity and data storage.

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Actual and projected sales of an entity for September and October are as follows:

All credit sales are collected in the month following the month in which the sale is made.
The September 30 cash balance is US $23,000. Cash disbursements in October are projected to be US $94,000. To maintain a minimum cash balance of US $15,000 on October 31, the entity will need to borrow:

• A.US $0 B US $6,000 C US $11,000
• B.US $16,000

Correct Answer: B

This entity will collect US $80,000$50,000 from September credit sales + $30,000 from October cash sales) in October. To reach its targeted cash balance on October 31, it will have to borrow US $6,000.

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