Question 66 Which of the following is least likely to be classified as cash flows from financing by Gordon, Inc. under U.S. GAAP? A) Preferred stock dividends paid to Gordon, Inc. on account of Gordon's ownership of nine percent par value preferred stock in Venture, Inc. B) The portion of long-term debt principal payable within the current year operating cycle of the business. C) Preferred stock dividends paid by Gordon, Inc. to its preferred shareholders at eight percent of par value. D) Proceeds from the issuance of eight percent preferred stock of Gordon, Inc. Question 67 Matrix, Inc.’s common size income statement for the years ended December 31, 20X1 and 20X2 included the following information (percent of net sales): | 20X1 | 20X2 | Sales | 100 | 100 | Cost of Goods Sold | (55) | (60) | Gross Profit | 45 | 40 | Selling General & Administrative | (5) | (5) | Depreciation | (7) | (8) | Operating Profit (EBIT) | 33 | 37 | Interest Expense | (15) | (7) | Earnings before Taxes | 18 | 30 | Income Tax Expense | (6) | (10) | Earnings after Taxes | 12 | 20 |
Analysis of this data indicates that from 20X1 to 20X2: A) cost of goods sold increased. B) sales volume was unchanged. C) interest expense per dollar of sales declined. D) the effective tax rate increased.
Question 68 Which of the following pairs most accurately identifies the account that provides an analyst with information about a firm’s investing activities and describes the level of working capital associated with an inefficient use of assets? Investing activities Inefficient use of assets A) Noncurrent assets Insufficient working capital B) Current assets Too much working capital C) Noncurrent assets Too much working capital D) Current assets Insufficient working capital
Question 69 Jennings Inc. has an opening balance in owners’ equity of $75,000. During the period, there are three major transactions that occurred: an issuance of stock for $22,000, a dividend distribution of $10,000, and a reported net loss of $6,000. Which of the following amounts represents Jennings’ ending balance in owners’ equity based on these transactions? A) $87,000. B) $37,000. C) $91,000. D) $81,000. Question 70 Which of the following statements about independent projects is least accurate? A) If the internal rate of return is less than the cost of capital, reject the project. B) The internal rate of return and net present value methods can yield different accept/reject decisions for independent projects. C) If the net present value is positive, accept the project. D) The net present value indicates how much the value of the firm will change if the project is accepted. | 
发表于 2008-11-6 18:11
| 
