CFA Level 1 －模考试题(3)（AM）－Q61-65

reports, 考试题, style, class

Question 61

Consider an IFRS firm that reports its inventory under FIFO and a U.S. firm that reports its inventory under LIFO. In a deflationary environment, which of the following statements is most accurate regarding the equity and cost of goods sold accounts, respectively?

Equity Cost of Goods Sold

A) Higher under LIFO Higher under LIFO

B) Higher under LIFO Lower under LIFO

C) Lower under LIFO Lower under LIFO

D) Lower under LIFO Higher under LIFO

Question 62

In a period of rising prices and stable or increasing inventory quantities, use of the last in, first out (LIFO) inventory cost flow assumption is least likely to result in:

A) higher cash flows than under first in, first out (FIFO).

B) lower net income than under first in, first out (FIFO).

C) lower working capital than under first in, first out (FIFO).

D) higher income taxes than under first in, first out (FIFO).

Question 63

A firm uses the last in, first out (LIFO) accounting method and posts $100,000 as ending inventory. Last year's financial statements show inventory at $110,000. This period's income statement shows costs of goods sold at $90,000 with a LIFO reserve of $30,000. How much inventory was purchased this period, and what would the ending inventory balance be under first in, first out (FIFO)?

Inventory purchases Ending inventory (FIFO)

A) $80,000 $70,000

B) $90,000 $70,000

C) $80,000 $130,000

D) $90,000 $130,000

Question 64

A permanent difference in pretax and taxable income is least likely to result when:

A) premiums are paid on life insurance of key employees.

B) the installment sales method is used.

C) proceeds are received from life insurance on key employees.

D) tax-exempt interest is received.

Question 65

Which of the following statements about the presentation of cash receipts under the direct method and about the amounts of operating cash flow under the direct and indirect methods are most accurate?

Direct method presents: Operating cash flow amount is:

A) gross cash receipts and payments higher under direct method

B) gross cash receipts and payments the same under both methods

C) net cash receipts and payments the same under both methods

D) net cash receipts and payments higher under direct method