Q1. Luigi Medici, a level II candidate for the CFA charter, was asked to assist in the analysis of the effective tax rate for Monster Software Inc. The following comments were left with Medici by his superior, Greg Becker. 1. The analyst should estimate expected changes in the effective tax rate based solely on the provided reconciliation, without regard to any additional input from the management of the company. 2. The analysis of trends and forecasting should include all continuous items. 3. The analysis of trends and forecasting should include all sporadic items. 4. The forecast should include expected changes in legislation related to corporate taxation. Becker is: A) incorrect in regards to statements 2 and 3. B) correct in regards to statements 3 and 4. C) correct in regards to statements 2 and 4.
Q2. Differences between the effective tax rate and the statutory rate arise due to all of the following EXCEPT: A) deductible expenses. B) non-deductible expenses. C) tax credits.
Q3. All of the following factors complicate the comparability of effective tax rates across firms EXCEPT: A) comparisons over relatively short time horizons. B) volatility in the effective tax rate over the comparison period. C) changes in the statutory tax rate.
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发表于 2009-1-19 11:01
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