CFA Level 1 － Mock Exam 2 模拟真题－Q46-50 face, style, black, class

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46、Assume U.S. GAAP (generally accepted accounting principles) applies unless otherwise noted.
Two companies operating in the same industry both achieved the same return on owner's equity with  the same net sales, but the two companies were different with respect to return on total assets. Compared with the company that had the higher return on total assets, the company with the lower return on total assets most likely had a higher:

Select exactly 1 answer(s) from the following:

A. net profit margin.

B. total asset turnover.

C. financial leverage multiplier.

D. proportion of common equity in the capital structure.

 

47、Assume U.S. GAAP (generally accepted accounting principles) applies unless otherwise noted.

If an analyst is preparing common-size financial statements for several companies in the same industry, the most appropriate way of expressing the interest expense for each company is as a percentage of:

Select exactly 1 answer(s) from the following:

A. sales for the industry.

B. sales for that company.

C. total interest-bearing debt for the industry.

D. total interest-bearing debt for that company.

 

48、Assume U.S. GAAP (generally accepted accounting principles) applies unless otherwise noted.

An analyst gathered the following information about three equipment sales that a company made at the end of the year:  

	Original Cost	Accumulated Depreciation at Date of Sale	Sale Proceeds
1	$200,000	$150,000	$70,000
2	$200,000	$200,000	$30,000
3	$300,000	$250,000	$40,000

All else equal for that year, the company's cash flow from operations will most likely be:

Select exactly 1 answer(s) from the following:

A. $40,000 less than net income.

B. $10,000 less than net income.

C. $10,000 more than net income.

D. $40,000 more than net income.

49、Assume U.S. GAAP (generally accepted accounting principles) applies unless otherwise noted.
The following information is from a company's 2007 financial statements ($ millions):

Balances as of the year ended 31 December	2007	2006
Retained earnings	140	120
Accounts receivable	43	38
Inventory	48	45
Accounts payable	29	36

The company declared and paid cash dividends of $5 million in 2007 and recorded depreciation expense in the amount of $25 million for 2007. The company's 2007 cash flow from operations ($ millions) was closest to:

Select exactly 1 answer(s) from the following:

A. 10.

B. 25.

C. 30.

D. 35.

50、Assume U.S. GAAP (generally accepted accounting principles) applies unless otherwise noted.
A company using the LIFO inventory method reported a $20,000 decrease in the LIFO reserve during the year that reduced the LIFO reserve to $85,000 at year-end. If the company had used FIFO instead of LIFO in that year, the company's financial statements would have reported:

Select exactly 1 answer(s) from the following:

A. a lower cost of goods sold, but a higher inventory balance.

B. a higher cost of goods sold, but a lower inventory balance.

C. both a lower cost of goods sold and a lower inventory balance.

D. both a higher cost of goods sold and a higher inventory balance.

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答案和详解如下：

46 Correct answer is C

“Financial Analysis Techniques,” Thomas R. Robinson, Hennie van Greuning, Elaine Henry, and MichaelA. Broihahn
2008 Modular Level I, Vol. 3, pp. 604-607
Study Session 10-41-f
demonstrate the application of DuPont analysis (the decomposition of return on equity)
The DuPont system can be used to break down return on equity (ROE) into three components: Profit margin, total asset turnover, and financial leverage multiplier.
The first two components can be multiplied to calculate the return on assets (ROA). If the two companies have the same ROE, the company with the lower ROA must have a higher financial leverage multiplier (lower proportion of common equity in the capital structure).

 

47 Correct answer is B

“Financial Analysis Techniques,” Thomas R. Robinson, Hennie van Greuning, Elaine Henry, and MichaelA. Broihahn
2008 Modular Level I, Vol. 3, pp. 574-576
Study Session 10-41-a
evaluate and compare companies using ratio analysis, common-size financial statements, and charts in financial analysis
Interest expense is an income statement account and the common-size percentage should be computed as a percentage of sales for that company.

 

48 Correct answer is A

“Understanding the Cash Flow Statement,” Thomas R. Robinson, Hennie van Greuning, Elaine Henry, and MichaelA. Broihahn
2008 Modular Level I, Vol. 3, pp. 271-273, 275-276
Study Session 8-34-f
demonstrate the steps in the preparation of direct and indirect cash flow statements, including how cash flows can be computed using income statement and balance sheet data
Equipment sale 1 results in a gain of $20,000, sale 2 results in a gain of $30,000, and sale 3 results in a loss of $10,000. The net gain is $40,000. The amount that would be deducted from net income to determine cash flow from operations is equal to the net gain of $40,000.

 

49 Correct answer is D

“Understanding the Cash Flow Statement,” Thomas R. Robinson, Hennie van Greuning, Elaine Henry, and MichaelA. Broihahn
2008 Modular Level I, Vol. 3, pp. 275-278
Study Session 8-34-f
demonstrate the steps in the preparation of direct and indirect cash flow statements, including how cash flows can be computed using income statement and balance sheet data
The change in retained earnings is $20 and dividends are paid from retained earnings. 2007 net income would equal the change in retained earnings plus any dividends paid during 2007. Depreciation expense would be added to net income and the changes in balance sheet accounts would also be considered to determine cash flow from operations.
$20 + 5 (dividends) + 25 (depreciation) - 5 (increase in receivables) - 3 (increase in inventory) - 7 (decrease in payables) = $35 million.

 

50 Correct answer is D

“Analysis of Inventories,” Gerald I. White, AshwinpaulC. Sondhi, and Dov Fried
2008 Modular Level I, Vol. 3, pp. 312-320
Study Session 9-35-c, d, e
compare and contrast the effect of the different methods on cost of goods sold and inventory balances, and discuss how a company’s choice of inventory accounting method affects other financial items such as income cash flow, and working capital;
compare and contrast the effects of the choice of inventory method on profitability, liquidity, activity, and solvency ratios;
indicate the reasons that a LIFO reserve might decline during a given period and evaluate the implications of such a decline for financial analysis
The negative change in the LIFO reserve would increase the cost of goods sold under FIFO compared to LIFO. FIFO COGS = LIFO COGS - Change in LIFO reserve.
The LIFO reserve has a positive balance so that FIFO inventory would be higher than LIFO inventory. FIFO inventory = LIFO inventory + LIFO reserve.

 

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