2009 Aicpa Newly Released Question - Business Essay

3475 Words Nov 2nd, 2012 14 Pages
2009 AICPA Newly Released Questions – Business

Following are multiple choice questions recently released by the AICPA. These questions were released by the AICPA with letter answers only. Our editorial board is currently working on providing detailed explanations for these questions, so please check back to the Becker Knowledgebase soon for the updated file. Please note that the AICPA generally releases questions that it does NOT intend to use again. These questions and content may or may not be representative of questions you may see on any upcoming exams.

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2009 AICPA Newly Released Questions – Business

1. CPAA company's target gross margin is 40% of the selling price of a product that costs $89 per unit. The product's
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2009 AICPA Newly Released Questions – Business

10. CPAEaton is the sole owner of a construction company. Eaton is concerned about personal liability. Which of the following entities will best allow Eaton to limit personal liability? a. b. c. d. Sole proprietorship. C corporation. General partnership. Limited partnership.

Explanation Choice "b" is correct.

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2009 AICPA Newly Released Questions – Business

11. CPAWhich of the following costs would decrease if production levels were increased within the relevant range? a. b. c. d. Total fixed costs. Variable costs per unit. Total variable costs. Fixed costs per unit.

Explanation Choice "d" is correct.

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2009 AICPA Newly Released Questions – Business

12. CPAWhich of the following assumptions is associated with the economic order quantity formula? a. b. c. d. The carrying cost per unit will vary with quantity ordered. The cost of placing an order will vary with quantity ordered. Periodic demand is known. The purchase cost per unit will vary based on quantity discounts.

Explanation Choice "c" is correct.

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2009 AICPA Newly Released Questions – Business

13. CPAWhich of the following statements about investment decision models is true? a. The discounted payback rate takes into account cash flows for all periods. b. The payback rule ignores all cash flows after the end of the payback period. c. The net present value model says to accept investment opportunities

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