Wiley CPA Excel Exam Review Study Guide January 2015 - Business Environment and Concepts - Wiley

481 Pages·2016·4.42 MB·English

by  Whittington O.R.

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5 Wiley
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C PA e x c e l
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E X A M R E V I E W
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J A N UA RY 2 015
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Wiley
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1C PA e x c e l
EXAM REVIEW
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ST U DY G U I D E
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JA N UA RY 2 015
BUSINESS ENVIRONMENT
AND CONCEPTS
O. Ray Whittington,
CPA, PhD
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Cover Design: Wiley
Cover image: © turtleteeth/iStockphoto
The following items, copyright © by the American Institute of Certified Public Accountants, Inc., are reprinted (or adapted) with
permission.
1. Material from Uniform CPA Examination Questions and Answers, 1978 through 2014.
2. Information for Uniform CPA Examination Candidates, Board of Examiners, 2013.
Material from the Certified Internal Auditor Examination, Copyright © 1994 through 1997 by the Institute of Internal Auditors, Inc. are
reprinted and/or adapted by permission.
Material from the Certified Management Accountant Examination, Copyright © 1993 through 1997 by the Institute of Certified
Management Accountants are reprinted and/or adapted by permission.
Reproduction and adaption of pronouncements, copyright © Financial Accounting Standards Board, Norwalk, Connecticut 06856-5116,
with permission.
Copyright © 2015 by John Wiley & Sons, Inc. All rights reserved.
Published by John Wiley & Sons, Inc., Hoboken, New Jersey.
Published simultaneously in Canada.
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CONTENTS
Preface vii
About the Author ix
About the Contributor ix
INTRODUCTION 1
Chapter 1: Beginning Your CPA Review Program 3
Chapter 2: Examination Grading 15
Chapter 3: The Solutions Approach 17
Chapter 4: Taking the Examination 25
Chapter 5: Exam Content Overview 29
BUSINESS ENVIRONMENT AND CONCEPTS 35
Module 40: Corporate Governance, Internal Control, and
Enterprise Risk Management 37
Module 41: Information Technology 69
Module 42: Economics, Strategy, and Globalization 133
Module 43: Financial Risk Management and Capital Budgeting 191
Module 44: Financial Management 241
Module 45: Performance Measures and Management Techniques 297
Module 46: Cost Measurement and Assignment 337
Module 47: Planning, Control, and Analysis 375
APPENDICES 419
Appendix A: Business Environment and Concepts Sample Examination 421
Appendix B: Sample Business Environment and Concepts Testlet
Released by AICPA 439
Appendix C: 2014 Released AICPA Questions for Business
Environment and Concepts 441
INDEX 455
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PREFACE
Passing the CPA exam upon your first attempt is possible! The
Wiley CPAexcel Exam Review 2015 Study Guide January: Business
Environment and Concepts preparation materials provide you with
the necessary materials (visit our website at www.wiley.com/cpa for
more information). It’s up to you to add the hard work and commit-
ment. Together we can beat the pass rate on each section of about
50%. All Wiley CPAexcel products are continuously updated to
provide you with the most comprehensive and complete knowledge
base. Choose your products from the Wiley preparation materials
and you can proceed confidently. You can select support materials
that are exam-based and user-friendly. You can select products that
will help you pass!
Remaining current is one of the keys to examination success.
Here is a list of what’s new in this edition of the Wiley CPAexcel
Exam Review 2015 Study Guide January: Business Environment
and Concepts text.
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Environment and Concepts for the Computerized CPA
Examination beginning in 2014
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The objective of this work is to provide you with the knowl-
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FOR SUPPLEMENTS the Uniform Certified Public Accounting (CPA) Exam. The text is
. divided up into eight areas of study called modules. Each module
AND UPDATES
contains written text with discussion, examples, and demonstra-
tions of the key exam concepts. Following each text area, actual
American Institute of Certified Public Accountants (AICPA) unof-
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We are indebted to the AICPA for permission to reproduce and adapt
examination materials from past examinations. Author-constructed
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areas, giving candidates a chance to assess their areas of strength
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topics are presented. If the CPA exam does not test it, this text does
not present it.
The CPA exam is one of the toughest exams you will ever take. It
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goal, you will be thrilled with what you can accomplish.
Ray Whittington
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vii
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