According to COBIT, IT Resources Must Be Managed by IT

question 102

True/False

According to COBIT, IT resources must be managed by IT control processes to ensure that an organization has the information it needs to achieve its objectives.

Identify positive and negative cash flow effects from changes in balance sheet items.

Use the direct and indirect methods for reporting cash flows from operating activities.

Recognize transactions that influence cash flow but do not affect the income statement.

Determine the cash flow implications of changes to accounts receivable, inventory, and long-term liabilities.

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Definitions:

Risk-Averse Investor

An investor who prefers lower returns with known risks rather than higher returns with unknown risks.

Slope of the Budget Line

The rate at which one good can be traded for another, reflecting the relative prices of two goods.

Standard Deviation

An indicator that calculates how much a group of figures deviates or scatters from each other.

Risky Asset

An asset that carries a significant degree of risk of losing value, but also offers the potential for higher returns as compared to safer investments.