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NEW QUESTION: 1
Which EAP method can an AP use to authenticate to the wired network?
A. EAP-FAST
B. EAP-MD5
C. EAP-TLS
D. EAP-GTC
Answer: C
NEW QUESTION: 2
What would be the primary reason for a company to agree to a debt covenant limiting the percentage of
its long-term debt?
A. To reduce the risk for existing bondholders.
B. To reduce the interest rate on the bonds being sold.
C. To lower the company's bond rating.
D. To cause the price of the company's stock to rise.
Answer: B
Explanation:
Note: The material tested in this question does not appear specifically on-point in our textbook, as the
topic has rarely shown up on the CPA exam. The topics are covered in general in parts of our textbook, so
we believe that our students would have answered this question correctly given the information they had.
However, we have expanded our Explanation: of this question to provide you with more detailed
information.
Choice "d" is correct. The primary reason for a company to agree to a debt covenant limiting the
percentage of its long-term debt is to reduce the interest rate on NEW bonds being sold. A debt covenant
is a provision in a bond indenture (contract between the bond issuer and the bond holders) that the bond
issuer will either do (affirmative covenants) or not do (negative covenants) certain things. In this question,
the issuer would agree not to issue bonds in the future over a certain percentage of its long-term debt.
Such a provision would be good for the potential bondholders and would probably reduce the interest rate
on the bonds being sold.
Choice "a" is incorrect. The primary reason for a company to agree to a debt covenant limiting the
percentage of its long-term debt is not to cause the price of the company's stock to rise. Bond covenants
affect bonds, not equity (at least not directly).
Choice "b" is incorrect. The primary reason for a company to agree to a debt covenant limiting the
percentage of its long-term debt is not to lower the company's bond rating. Such a covenant might raise,
not lower, a company's bond rating because there would be less risk. Besides, why would a bond
covenant be signed if it would lower the company's bond rating?
Choice "c" is incorrect. The primary reason for a company to agree to a debt covenant limiting the
percentage of its long-term debt is not to reduce the risk of existing bondholders, although a reduction in
the risk of the existing bondholders certainly might result from such a covenant. As a general rule, more
debt means more risk, less debt means less risk. So less debt would reduce the risk of all bondholders.
This answer is a very close second.
NEW QUESTION: 3
HOTSPOT
You are developing an online shopping application that accepts credit cards for payment.
If the credit card number is invalid, the application must:
Generate an error
Assign "200" to the error number
Assign "Invalid" to the error description
You need to write the code that meets the requirements.
How should you write the code? (To answer, select the appropriate option from the drop-down list in the answer area.) Hot Area:
Answer:
Explanation:
Explanation/Reference:
Example: throw new Error(200, "x equals zero");
Reference: throw Statement (JavaScript)
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