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Q27. Which of the following adjustments should Berenz make to account for the market value of long-term debt?
A) Decrease long-term debt by $120 and increase equity by $120.
B) Increase long-term debt by $120 and decrease equity by $120.
C) Decrease long-term debt by $190 and increase equity by $190.
Q28. Which of the following adjustments should Berenz make to account for the operating lease?
A) Add $277 to net fixed assets and $277 to long-term debt.
B) Add $277 to net fixed assets and $277 to equity.
C) Add $299 to net fixed assets and $299 to long-term debt.
Q29. Which of the following statements regarding adjustments that Berenz will make to Brenda’s Bakery Supply financial statement
is most accurate?
A) Brenda’s use of LIFO inventory accounting is an indicator of low earnings quality.
B) Adjusting for the firm’s potential environmental clean up obligation will increase the financial leverage multiplier.
C) Adjusting for the firm’s operating lease will serve to increase future cash flow from financing.
Q30. Regarding their conversation about comprehensive income:
A) Douglas’ statement is correct; Berenz’s statement is incorrect.
B) Douglas’ statement is incorrect; Berenz’s statement is incorrect.
C) Douglas’ statement is incorrect; Berenz’s statement is correct.
Q31. Which of the following statements is correct when inventory prices are falling?
A) LIFO results in higher COGS, lower earnings, higher taxes, and higher cash flows.
B) LIFO results in lower COGS, higher earnings, higher taxes, and lower cash flows.
C) LIFO results in lower COGS, lower earnings, lower taxes, and higher cash flows.
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发表于 2009-3-3 12:34
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