Question 1

Which of the following best explains why an organization would enter into a capital lease contract?

Options :

A : To increase the ability to borrow additional funds from creditors.

B : To reduce the organization-s free cash flow from operations.

C : To improve the organization-s free cash flow from operations.

D : To acquire the asset at the end of the lease period at a price lower than the fair market value

Answer: D

Question 2

Which of the following statements is true regarding a project life cycle?

Options :

A : Risk and uncertainty increase over the life of the project.

B : Costs and staffing levels are typically high as the project draws to a close.

C : Costs related to making changes increase as the project approaches completion.

D : The project life cycle corresponds with the life cycle of the product produced by or modified by the project.

Answer: C

Question 3

Which of the following serves as a safeguard to protect the confidentiality of information being transmitted from an internal network to an external network?

Options :

A : A cloud network.

B : A mobile network.

C : An intranet.

D : A virtual private network.

Answer: D

Question 4

Which of the following performance measures disincentivizes engaging in earnings management?

Options :

A : Linking performance to profitability measures such as return on investment.

B : Linking performance to the stock price.

C : Linking performance to quotas such as units produced.

D : Linking performance to nonfinancial measures such as customer satisfaction and employees training.

Answer: A

Question 5

Which of the following actions would senior management need to consider as part of new IT guidelines regarding the organization's cybersecurity policies?

Options :

A : Assigning new roles and responsibilities for senior IT management

B : Growing use of bring your own devices for organizational matters

C : Expansion of operations into new markets with limited IT access

D : Hiring new personnel within the IT department for security purposes

Answer: B

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