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NEW QUESTION: 1
Which three actions are facilitated through the Reconciliation Summary Report? (Choose three.)
A. drilldown to view data and use standard Excel functions such as sum, find, sort, and filtering without actually downloading to Excel
B. drilldown to see details of unaccounted revenue transactions not transferred and posted to the General Ledger
C. drilldown to see reconciliation details and to make reconciling corrections
D. drilldown on the difference amounts to see specific reconciling items and the potential cause of the out- of-balance condition
E. drilldown from any of the summarized Receivables and Accounting amounts to see detailed activity
Answer: B,D,E
Explanation:
Explanation/Reference:
Explanation:
C: Ideally the Summary report should display no differences between receivables transactional amounts and accounted amounts.
Any differences that you find require further investigation and possible correction. Common reasons for differences between transactional amounts and accounted amounts include:
Transactions that are not accounted.
Etc.
D: Drill down on any amount in the Summary report Difference column to display the Differences Detail report for that item. The Differences Detail reports display the details that make up balances from the Summary report, and indicate potential causes for differences between actual and reconciling amounts.
E: Receivables to Ledger Reconciliation Report
Provides reconciliation of receivables data to the general ledger.
Shows receivables and accounting beginning and ending balances, as well as summarized activity for
the period and how the activity was accounted.
References: https://docs.oracle.com/cloud/latest/financialscs_gs/OCUAR/ OCUAR1559320.htm#OCUAR1576621
NEW QUESTION: 2
Lucy Sakata, CFA and Gary Lowenstein, CFA are portfolio managers for the Murray Funds, a provider of investment funds to institutional and wealthy individual investors. Murray frequently indexes in developed markets, but uses full blown active management in less efficient markets and when they think their analysts have a particular expertise. The vast majority of Murray's clients attempt to minimize tracking error.
One of the Murray's funds invests in a Hong Kong index and is marketed as a way for investors to participate in the growth of the Asian economies. The index represents the best known Hong Kong stocks and Murray uses a full replication strategy for the fund. The index is a market cap-weighted index and ten firms represent over 70% of the index's total market cap_Sakata would like to market the Hong Kong fund to institutions with a required minimum investment of $50 million. Many potential clients are institutions who outsource their foreign equity management and are subject to maximum holdings on individual stocks.
Murray also has a Canada fund that invests in an index which represents the 25 largest cap stocks in Canada. It is marketed as a way for investors to exploit the growth in demand for commodities. The index adjusts for stock splits and repurchases as necessary. Most of the index's return has come from capital gains, rather than dividends, due to the tremendous increase in global demand for commodities. To encourage long-term holding, Murray places a back-end load of 3% on fund redemptions that are made within two years of initial investment.
Sakata and Lowenstein discuss the fundamental law of active management and how it applies to three hypothetical managers who invest against the broad large-cap U.S. market, as represented by the S&P
500 index.
* Manager A under-weights and over-weights the 500 individual stocks of the S&P 500 index as she sees appropriate, keeping industry exposures similar to those of the index. She has an information coefficient of
0.05 and is restricted to long-only positions.
* Manager B holds cash and long S&P 500 futures. He tries to generate excess returns by altering the duration of the cash position and has an information coefficient of 0.05.
* Manager C has an information coefficient of 0.07, and she uses a long-short strategy for the 500 stocks in the S&P 500 index.
Sakata is consulting with the trustees of the Powell Foundation. The foundation has a position in the three Murray funds described in Exhibit 1 below.
Exhibit 1: Powell Foundation Holdings
Murray has a value fund that invests in stocks in the U.S. Lowenstein is considering several equity style index providers as a benchmark for the fund. The characteristics of the index providers and the methodologies they use to construct equity style indices are described in Exhibit 2 below.
Exhibit 2: Comparison of Index Providers
In regard to the index providers, Lowenstein makes the following statements:
Statement 1: "I would like to use the indices from either provider in a returns-based style analysis. Based on the information in the table, I believe that if I regress a value manager's returns against Provider B's indices, the manager's selection return will appear artificially large." Statement 2: "If an index provider uses buffering rules, a fund tracking that index will experience lower transactions costs." Determine which of the three managers will most likely have the highest information ratio.
A. Manager B.
B. Manager A.
C. Manager C.
Answer: C
Explanation:
Explanation/Reference:
Explanation:
The fundamental law of active management states that an investors information ratio is a function of her depth of knowledge (the investor's information coefficient) and the number of independent investment decisions (the investors breadth).
Professor's Note: Think of the information coefficient as the correlation between the managers forecasted and actual returns.
The derivatives-based enhanced indexing strategy of Manager B will have less breadth than the (stock- based) enhanced strategies of Managers A and C Note that Manager B has the same information coefficient as Manager A, so Manager A should have a higher information ratio than Manager B.
Manager C uses a long-short strategy, which attempts to exploit the short selling constraints faced by many managers. The long-only strategy of Manager A can only earn a long alpha, but both managers actively follow and analyze 500 stocks. This means their breadth is the same. Due to a higher information coefficient than Manager B, Manager C will have a higher information ratio, so C has the highest ratio among the three managers. (Study Session 11, LOS 33m and p)
NEW QUESTION: 3
The BEST technique to authenticate to a system is to:
A. ensure the person is authenticated by something he knows and something he has.
B. allow access only through user ID and password.
C. maintain correct and accurate ACLs (access control lists) to allow access to applications.
D. establish biometric access through a secured server or Web site.
Answer: A
Explanation:
Explanation/Reference:
Explanation:
This is a tricky question. Normally, biometrics is the preferred answer as it is a more secure means of authentication than even multi-factor authentication. However, you would not establish biometric access through a secured server or Web site. Therefore, the answer must be "Ensure the person is authenticated by something he knows and something he has". This is an example of two-factor authentication.
Incorrect Answers:
A: You would not establish biometric access through a secured server or Web site.
C: Maintain correct and accurate ACLs is always a good idea. However, this provides no authentication solution as required by the question.
D: A user ID and password is single-factor authentication. The user ID and the password are both
"something you
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