答案和详解如下： Answer 61 The correct answer was A) straight-line FIFO
With rising prices, FIFO will result in higher reported earnings than LIFO. Straight-line depreciation will result in higher reported earnings than accelerated depreciation as long as the firm continues to invest in new assets. This question tested from Session 9, Reading 35, LOS c, (Part 2)
Answer 62 The correct answer was B) 16.67% 50.00% Take-or-pay arrangements represent off-balance-sheet financing and need to be included in the analysis. The adjustment is made by adding the present value of the obligation to the long-term assets and liabilities of the firm. Therefore, for analysis purposes the total assets are $3,000,000 (= $2,500,000 + $500,000), the total liabilities are $1,500,000 [= ($2,500,000 − $1,500,000) + $500,000], and total capital is $3,000,000 (= $1,500,000 + $1,500,000). The ROA is 16.67% ($500,000 / $3,000,000) and the debt-to-total capital ratio is 50.00% ($1,500,000 / $3,000,000). This question tested from Session 9, Reading 40, LOS c
Answer 63 The correct answer was C) Required to capitalize Same treatment as under IFRS Firms that follow U.S. GAAP must capitalize construction interest whereas firms that follow IFRS can choose to capitalize such interest. Over the past several years, there has been convergence between U.S. GAAP and IFRS in reporting discontinued operations. This question tested from Session 10, Reading 43, LOS b
Answer 64 The correct answer was B) $55,000 loss Yes Reacquiring the bonds for more than the carrying amount will result in a loss of $55,000 ($1,055,000 reacquisition price − $1,000,000 carrying value). Current interest expense is 8% of $1 million or $80,000. Interest expense on $1,055,000 of new debt at 7.5% will be (0.075)(1,055,000) = $79,125. Note that overall the refinancing will not increase the value of the firm as the loss on the repurchase and the issuance costs of new debt will more than offset the savings in interest. This question tested from Session 9, Reading 39, LOS g
Answer 65 The correct answer was C) Income tax expense. The reported effective tax rate is calculated as income tax expense divided by pretax income. There are two alternatives to the reported effective tax rate measure. They include using taxes payable (from the tax return) and income tax paid (from the tax return). These measures may be more useful for analysis because they are less affected by management’s choices of accounting methods. This question tested from Session 9, Reading 38, LOS h
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发表于 2008-11-15 14:30
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