CFA Level 1 － 模考试题(3)（AM）－Q46-50 statements, following, 考试题, about

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Question 46 

Which of the following statements about ratios and ratio analysis is least likely correct? 

A) Some of the more common differences in accounting methods between firms involve the valuation of inventory and recording depreciation.

B) The total debt ratio measures total debt relative to owners’ equity.

C) Financial ratios can be used to evaluate management’s performance.

D) The financial leverage ratio is calculated as total assets divided by total equity.

 

Question 47 

Walsh Furniture has purchased a machine with a 7-year useful life for $250,000. At the end of its life it will have an estimated salvage value of $15,000. Using the double-declining balance (DDB) method, depreciation expense in year 2 is closest to: 

A) $33,570.

B) $58,750.

C) $51,020.

D) $71,430.

 

Question 48 

On January 31, Dowling Inc. borrowed funds to purchase equipment for its business operations. On the same day, it also recorded the cost of salaries incurred to January 31 , which will be paid on February 6. When these two transactions are recorded on January 31, which of the following financial statement items will increase the most? 

A) Assets.

B) Expenses.

C) Liabilities.

D) Revenues.

 

Question 49 

Pacific, Inc.’s financial information includes the following, with “change” referring to the difference from the prior year (in $ millions):

Net Income	27
Change in Accounts Receivable	+4
Change in Accounts Payable	+1
Change in Inventory	+5
Loss on sale of equipment	-8
Gain on sale of real estate	+4
Change in Retained Earnings	+21
Dividends declared and paid	+4

Pacific, Inc.’s cash flow from operations (CFO) in millions was:

A) $27.

B) $21.

C) $15.

D) $23.

 

Question 50 

A junior analyst wants to understand the underlying components of the DuPont method to better see what changes are driving the changes in ROE. Which of the following items is a direct component of the original (three-part) DuPont equation? 

 

A) Asset turnover.

B) Gross profit margin.

C) Debt-to-assets ratio.

D) Debt-to-equity ratio.

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答案和详解如下：

Question 46 

The correct answer was B) The total debt ratio measures total debt relative to owners’ equity. 

The total debt ratio actually measures the extent to which a firm is financed by debt. The debt-to-equity ratio measures total debt relative to equity. The other three statements are correct. Comparisons with other companies are made more difficult because of different accounting methods. Some of the more common differences include inventory methods (FIFO and LIFO), depreciation methods (accelerated and straight-line), and lease accounting (operating and capital). 

This question tested from Session 8, Reading 33, LOS i

 

Question 47 

The correct answer was C) 

Year	2 / Depreciable Life	× Book Value at Beginning of the Year	= Depreciation
1	0.2857	250,000	71,429
2	0.2857	178,571	51,020

 

$33,570 would be the depreciation expense if straight-line depreciation is used. $58,750 would the depreciation in year 1 if the sum of the years' digits method was used. 

This question tested from Session 8, Reading 32, LOS e, (Part 1)

 

Question 48 

The correct answer was C)

Borrowing funds to purchase equipment will result in an increases in assets (equipment) and in liabilities (debt). The accrual of the salaries that are not owed, but not paid, as of month-end will increase expenses and increase a liability (accrued salary expense). Therefore, these two transactions will result in the greatest increase in the liabilities account. 

This question tested from Session 7, Reading 30, LOS d

 

Question 49 

The correct answer was D) $23. 

Using the indirect method, cash flow from operations is net income less increase in accounts receivable, plus increase in accounts payable, less increase in inventory, plus loss on sale of equipment, less gain on sale of real estate. 27 – 4 + 1 – 5 + 8 – 4 = $23 million. 

This question tested from Session 8, Reading 34, LOS f, (Part 1)

 

Question 50 

The correct answer was A) Asset turnover. 

The three-part DuPont approach is as follows:

(net profit margin) × (asset turnover) × (leverage ratio)

Based on the equation above, it is clear that net profit margin is relevant, not gross profit margin. The asset turnover ratio is calculated as sales divided by assets and the leverage ratio is calculated as assets divided by equity. Therefore, neither the debt-to-asset nor the debt-to-equity ratios are relevant here.

This question tested from Session 10, Reading 41, LOS f

 

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