CFA Level 1 －模考试题(3)（PM）－Q61-65

invest, 考试题, style, class

Question 61

For a firm that continues to invest in new assets in a rising price environment, which of the following combinations of accounting practices will lead to the highest reported earnings?

Depreciation Method Inventory Method

A) straight-line FIFO

B) double declining balance FIFO

C) straight-line LIFO

D) double declining balance LIFO

Question 62

Goldrush Inc. reported the following information on its income statement and balance sheet:

Sales

$3,500,000

Net income

$500,000

Total assets

$2,500,000

Total equity

$1,500,000

Goldrush’s footnotes indicate that the firm has a take-or-pay obligation with payments totaling $800,000 that have a present value of $500,000. What are Goldrush’s ROA and debt-to-total capital ratios after adjustment for this obligation?

ROA Debt-to-Total Capital

A) 16.67% 30.30%

B) 16.67% 50.00%

C) 20.00% 30.30%

D) 20.00% 50.00%

Question 63

Which of the following statements is correct regarding the capitalization of interest for a constructed asset (that will take several years to complete) and the treatment of discontinued operation, respectively, under U.S. GAAP?

Construction interest Discontinued operations

A) Required to capitalize Different treatment than under IFRS

B) Optional to capitalize Same treatment as under IFRS

C) Required to capitalize Same treatment as under IFRS

D) Optional to capitalize Different treatment than under IFRS

Question 64

Three years ago, Regal Corporation issued $1,000,000, 8% bonds at par. The bonds pay interest semi-annually and mature in 7 years. The bonds do not contain a call provision. Interest rates have recently decreased to 7.5% and the 8% bonds are now trading at $1,055,000. Regal is considering refinancing the bonds, issuing new bonds in the amount reaquired to repurchase the 8% issue, in order to lower its interest expense. Calculate the accounting gain or loss and determine whether the repurchase will decrease the firm’s interest expense.

Accounting gain or loss Decrease interest expense

A) $55,000 loss No

B) $55,000 loss Yes

C) $55,000 gain No

D) $55,000 gain Yes

Question 65

Which of the following items is used in the numerator to calculate the reported effective tax rate on a firm’s financial statements?

A) Taxes payable.

B) Cash taxes paid.

C) Income tax expense.

D) Statutory tax.