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NEW QUESTION: 1
Which KPI can assist the PM in the analysis of a Gross Margin deviation?
A. PARD
B. RA
C. SILT
D. PCA
Answer: D
NEW QUESTION: 2
An accountant acting under their Code of Ethics would do which THREE of the following?
A. Reject a justified change to a depreciation policy that increases profitability.
B. Report material conflicts of interest to a more senior level.
C. Resist pressure from the directors to recognise revenue on sales where the risks and rewards have not transferred to the customer.
D. Accept a recommendation from the audit committee to increase segregation of duties within the finance department.
E. Accept a director's instruction to remove one element of their remuneration from the directors' remuneration report.
F. Make a provision for a liability of uncertain timing or amount, requested by the directors, where there is NOT a present obligation.
Answer: B,C,D
NEW QUESTION: 3
Today's edition of the Wall Street Journal carried a front page story regarding a federal lawsuit that has been filed against a software manufacturer for monopolistic practices. The CFO of the company called his broker today and sold some of the shares he owns in the company.
Which of the following statements are true?
I. The CFO is guilty of illegal insider trading.
II. If the agent who effected the transaction for the CFO knew he was CFO of the software company, the agent is guilty of illegal insider trading.
III. The broker-dealer for whom the agent works may have its license suspended or revoked if its agent has knowingly executed this illegal insider trade for not having supervised the agent properly.
A. None of the statements is true.
B. I only
C. I, II, and III
D. I and II only
Answer: A
Explanation:
Explanation/Reference:
Explanation: If the CFO called his broker and sold some of the shares he owns today, none of the statements is true. Insider trading is only illegal if the insider trades on information that the public does not yet have. In this case, the information has already been made publicly available, so no one has done anything illegal. Insiders to the company are allowed to buy and sell shares of their firm's stock as long as they are not acting on private information.
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