2008 CFA Level 1 － Sample 样题(2)－Q34 2008, black

mayanfang1

34、Assume U.S. GAAP (generally accepted accounting principles) applies unless otherwise noted.
Two manufacturing companies operating in the same industry have different net fixed asset turnover ratios. The difference most likely occurs because the company with the:

A. lower ratio was more efficient in managing inventory.

B. lower ratio had significantly higher amortization expense for the year.

C. higher ratio was operating with older equipment that had a low cost basis.

D. higher ratio recently invested a substantial amount in new plant and equipment.

[此贴子已经被作者于2008-11-7 14:18:41编辑过]

mayanfang1

34、Assume U.S. GAAP (generally accepted accounting principles) applies unless otherwise noted.
Two manufacturing companies operating in the same industry have different net fixed asset turnover ratios. The difference most likely occurs because the company with the:

A. lower ratio was more efficient in managing inventory.

B. lower ratio had significantly higher amortization expense for the year.

C. higher ratio was operating with older equipment that had a low cost basis.

D. higher ratio recently invested a substantial amount in new plant and equipment.

  
Correct answer = C

"Financial Analysis Techniques," Thomas R. Robinson, Hennie van Greuning, Elaine Henry, and Michael A. Broihahn
2008 Modular Level I, Vol. 3, p. 588
Study Session 10-41-d
calculate and interpret activity, liquidity, solvency, profitability, and valuation ratios
A company operating with old, low-cost equipment that is likely to be fully depreciated would tend to have a high fixed asset turnover ratio. 

 

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