12, the company's cash conversion cycle:
A)
decreases by approximately 3 days.
B)
increases by approximately 3 days.
decreases by approximately 1 day.
C)
Question #46 of 120 Question ID: 1146078Which of the following statements about a United States public corporation's annual reports, SEC filings, and press
releases is most accurate?
Annual and quarterly SEC filings must be audited.
Interim SEC filings typically update the major financial
statements and footnotes.
Annual reports to shareholders are typically the most
factual and objective source of information about a
company.
Which of the following is most likely a motivation for a company's management to issue low-quality financial reports?
Management has provided optimistic earnings guidance.
Oversight provided by the board of directors is weak or
inadequate.
Accounting principles permit a wide range of acceptable
treatments and estimates.
Question #48 of 120 Question ID: 1146097Haltata Turf & Sod currently uses the first in, first out (FIFO) method to account for inventory. Due to significant tax-loss
carryforwards, the company has an effective tax rate of zero. Prices are rising and inventory quantities are stable. If the
company were to use last in, first out (LIFO) instead of FIFO:
net income would be lower and cash flow would be
higher.
cash flow would remain the same and working capital
would be lower.
gross margin would be higher and stockholder’s equity
Question #49 of 120 Question ID: 1146113Which of the following effects is most likely to occur when using ratio screens for high dividend yield stocks and low P/E
stocks, respectively?
High dividend yield Low P/E ratios
Include too many financial
services firms Exclude too many
growth firms
Exclude too many financial
services firms Include too many
Question #50 of 120 Question ID: 1146081A firm that reports under IFRS is producing under a long-term contract for which it cannot measure the outcome reliably.
In the first year of the contract, the firm has spent €300,000 and collected €200,000 in cash. What amounts related to this
contract should the firm recognize on its income statement for the year?
Revenue of €300,000, expenses of €300,000, and no
profit.
No revenue, expenses, or profit until the contract is
completed.
Revenue of €200,000, expenses of €300,000, and a loss
of €100,000.
Question #51 of 120 Question ID: 1146087A company's investments in marketable securities include a 3-year tax- exempt bond classified as held-to-maturity and a
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