A company invests all of its short-term excess cash in T-bills on a daily basis. To prevent delays in processing its outgoing wire transfers, the company may ask its cash management bank to establish a:

• A.daylight overdraft line.
• B.revolving line of credit.
• C.letter of credit.
• D.net debit cap.

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Which of the following are KEY issues to be considered when establishing a shared service center (SSC)?
I. Selecting the location
II. Comparing an SSC structure to outsourcing of a process
III. Choosing and implementing the technology for SSC
IV.
Choosing the collection bank

• A.II and IV only
• B.I and III only
• C.II, III, and IV only
• D.I, II, and III only

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Company ABC decides to outsource certain activities to an unrelated company and have that company assume the associated loss exposures. What loss control technique is Company ABC using?

• A.Control of isolated losses
• B.Risk retention group
• C.Separation of exposures
• D.Contractual transfer

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Based on the following information, how much money will XYZ Company owe the bank for monthly service charges after the earnings credit is applied?
Average Ledger Balance$500,000 Deposit Float$10,000 Reserve Requirement10% Earnings Credit Rate5% Monthly Service Charges$5,000 Days in month30

• A.$561.64
• B.$68.49
• C.$436.99
• D.$0

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To strengthen outside auditor independence with regard to publicly held companies, the Sarbanes-Oxley Act requires that:

• A.accounting firms supply audit work papers annually to the SEC for their clients.
• B.the lead audit partner and audit review partner be rotated every five years.
• C.employment of staff from companies' accounting firms be approved in advance by the audit committees.
• D.companies change accounting firms for audit services at least every seven years.

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