Home > CPA (Certified Public Accountant) > Quizzes > CPA BAR Globalization and Performance, Process, and Risk Management
CPA BAR Globalization and Performance, Process, and Risk Management
Fast practice, instant feedback. Timer auto-submits when time’s up.
Avg score: 64% • Most missed: “Orange Corp. has a P/E ratio of 20 and its earnings in the current year are $10 …”
1. Globalization and Performance Management BAR covers how global business environments impact financial reporting and management performance. Key aspects include: Performance Management: The section focuses on advanced financial statement analysis and technical accounting, enabling candidates to evaluate company performance effectively. Globalization Issues: This includes understanding the risks and opportunities of expanding into international markets, as well as the impact of foreign trade on profitability. Data Analytics: Candidates are tested on using data and technology to make... Show more
CPA BAR Globalization and Performance, Process, and Risk Management
Time left 00:00
25 Questions

1. Within project management, which of the following is responsible for project administration on a day-to-day basis, including identifying and managing internal and external stakeholder expectations?
2. A US firm that has cash flows in a foreign currency will suffer an economic loss if:
I. the foreign currency appreciates and the US firm has net cash inflows
II. the US firm has net cash outflows and the foreign currency depreciates
3. Which of the following is/are correct regarding conformance and nonconformance costs?
I. Conformance costs include both prevention and appraisal.
II. Nonconformance costs include internal and external failure.
4. Orange Corp. has a P/E ratio of 20 and its earnings in the current year are $10 per share. In the coming years, earnings of $18 per share are expected. What is the anticipated share price of Orange?
5. Within project management, the project manager reports to the:
6. Wildwood Corp. issued bonds four years ago. If the _____________ interest rate _____________, the market value of each Wildwood corporate bond will _____________.
7. Surett Corp. is looking to implement a new in-house payroll processing system, and would like to determine the loss that might be anticipated as a result of user error. Surett estimates the probability of user error to be 80%, and also estimates the range of error (distributed evenly) to be between $5,000 and $20,000 for the year. Based on this information, what amount of loss might Surett expect for the year?
8. Which of the following is/are correct regarding the P/E ratio?
I. The P/E ratio measures the amount that investors are willing to pay for each dollar of earnings per share.
II. Lower P/E ratios generally indicate that investors are anticipating more growth and are bidding up the price of the shares in advance of performance.
9. Which of the following ratios would NOT be meaningful if there were a loss or if earnings were extremely small?
I. P/E ratio
II. Price to sales ratio
10. Diversifiable risk may also be referred to as:
I. unique risk
II. unsystematic risk
11. The required rate of return is generally computed as the risk-free rate of return plus a number of risk premium adjustments, including the maturity risk premium. Which of the following is/are correct regarding the interest rate risk?
I. Interest rate risk is an adjustment to the risk-free rate of return and is the additional compensation demanded by lenders for bearing the risk that the issuer of the security will fail to pay the interest or fail to repay the principal.
II. Interest rate risk is an adjustment to the risk-free rate of return and is the compensation investors demand for bearing risk.
III. Interest rate risk is directly related to the term to maturity.
12. Which of the following would NOT be a failure cost but a conformance cost?
I. Repair
II. Rework
13. Internal failure costs include:
I. product repair and warranty costs
II. tooling changes and rework costs
14. According to behavioral finance, what is a financial manager suffering from if the manager believes that his or her actions will cause earnings to increase and market prices to remain in proportion to increased earnings?
I. Confirmation bias
II. Excessive optimism
III. Illusion of control
15. Which of the following would happen if the price of the British pound were to increase relative to the US dollar?
I. The British pound would buy more British goods.
II. The British pound would buy more US goods.
16. Sudbury Education Inc. has a payout of 30% and a forecasted growth rate of 9%. If investors require a 11% rate of return on their investment, what is the estimated P/E multiple on this stock?
17. Futures contracts contain which of the following distinguishing features?
I. The contract is never speculative.
II. The parties to the contract know each other.
18. Factors that would likely cause a country’s currency to appreciate on the foreign exchange market assuming exchange rates are allowed to fluctuate freely include:
I. A low rate of inflation relative to other countries
II. Lower domestic real interest rates than real interest rates abroad
III. Slow growth rate to income compared to other countries, which results in net negative imports (imports less than exports)
19. Donruss Corp. is considering investing in a new project known as the Topps project. To evaluate the Topps project, Donruss management has developed the following cash flow projections and related probabilities:
What is the expected return for the Topps project?
20. Which of the following is/are correct regarding the constant growth dividend discount model?
I. The stock price will grow at a faster rate than the dividend.
II. The growth rate is less than the discount rate.
21. Which of the following would be a way of seeking radical change by ignoring the current process and instead starting from the beginning to design a different way of achieving the end goal and/or product?
I. Process management
II. Process reengineering
22. An investor is considering purchasing shares in a company with a dividend of $4 per share. If a zero growth model is used and 10% represents the desired return, how much should the stock sell for?
23. ______________ is the type of risk faced by global companies, who deal with political and financial risks of conducting business in a particular foreign region.
24. Olympic Enterprises Inc. owns recreation centers with virtual reality games. The entity constantly needs to upgrade its arcades and fun centers with the latest releases. The bank requires a compensating balance of 15% on a $100,000 loan. If the stated annual interest rate is 6%, what is the effective cost of the loan to Olympic Enterprises?
25. Compared to US Treasury bonds, equity securities and corporate bonds, respectively, are:

⚡ Recently practiced quizzes in this topic
Live quiz activity
CPA BAR Key Concepts CPA AUD Evidence Gathering and Transaction Cycles CPA Practice Exam Set CPA TCP (Tax Compliance and Planning) Key Concepts Essential CPA Glossary REG CPA Revision CPA AUD Key Concepts ISC CPA Key Concepts CPA FAR Government Accounting and Reporting CPA AUD Understanding and Testing of Internal Control
 
❤ If you liked Fatskills, consider supporting us by checking out The Life Manuals You Never Got.

🌈  Our mission is to help improve your scores in any subject and exam withonline quizzes, practice tests, study guides, & advice for students. Since 2018.
About | Explore | User Guide | Topics | Subjects | Doubt Solver | Career Aptitude Test | Answers | Free Tools | OSHA Basics Quiz | What Should We Know?
Privacy | Terms |
Without work one finishes nothing. - Ralph Waldo Emerson
© 2026 Fatskills.com

All trademarks, logos and brand names are the property of their respective owners. All company, product and service names used in this website are for identification purposes only. Use of these names, trademarks and brands does not imply endorsement.