CFA Level 1 － 模考试题(3)（PM）－Q56-60 style, 考试题, regarding, following

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Question 56 

Given the following data regarding two firms under different scenarios, determine the amount of any deferred tax liability or asset. 

Firm 1: 

Tax Reporting			Financial Reporting
Revenue	$500,000	Revenue		$500,000
Depreciation	$100,000	Depreciation		$50,000
Taxable income	$400,000	Pretax income		$450,000
Taxes payable	$160,000	Tax expense		$180,000
Net income	$240,000	Net income		$270,000

 

Firm 2: 

Tax Reporting			Financial Reporting
Revenue	$500,000	Revenue		$500,000
Warranty expense	$0	Warranty expense		$10,000
Taxable income	$500,000	Pretax income		$490,000
Taxes payable	$200,000	Tax expense		$196,000
Net income	$300,000	Net income		$294,000

 

   Firm 1 Deferred      Tax: Firm 2 Deferred Tax:

A)  $20,000 Liability     $4,000 Asset

B)  $30,000 Asset       $6,000 Asset

C)  $30,000 Liability     $4,000 Liability

D)  $20,000 Asset       $6,000 Liability

 

Question 57 

Camden Company’s appliance inventory transactions in the past year were as follows:

  ♣ Beginning inventory of 40 appliances at $600 each. 

  ♣ Purchased 80 appliances on April 15 at $625 each. 

  ♣ Purchased 100 appliances on August 7 at $650 each. 

  ♣ Sold 160 appliances on October 8. 

  ♣ Purchased 120 appliances on December 31 at $675 each. 

 

Using the average cost method, Camden’s cost of goods sold for the year is closest to:

A) $101,090.

B) $103,530.

C) $100,000.

D) $107,000.

 

Question 58 

A firm using straight-line depreciation reports:

  ♣ Gross investment in fixed assets of $87 million 

  ♣ Accumulated depreciation of $48 million 

  ♣ Annual depreciation expense of $3 million 

The approximate age of the fixed asset is:

A) 2 years.

B) 29 years.

C) 9 years.

D) 16 years.

 

Question 59 

To raise funds for its expansion, Hanna Inc. issued four somewhat unconventional debt instruments in an effort to minimize its borrowing costs. In general, which of the following debt instruments is least likely to minimize Hanna’s interest expense compared to a conventional corporate bond? 

A) Debt denominated in a foreign currency.

B) Convertible debt.

C) Bonds with warrants attached.

D) Exchangeable debt.

 

Question 60 

Which of the following best describes a ratio that measures a firm’s ability to acquire long-term assets with cash flows from operations, and a performance ratio, respectively?

 Acquire assets with CFO        Performance ratio 

A) Reinvestment ratio              Debt payment ratio 

B) Reinvestment ratio              Cash-to-income ratio 

C) Investing and financing ratio      Cash-to-income ratio 

D) Investing and financing ratio      Debt payment ratio 

 

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答案和详解如下：

Answer 56 

The correct answer was A) $20,000 Liability  $4,000 Asset

A deferred tax liability and asset is created when an income or expense item is treated differently on financial statements than it is on the company’s tax returns.   A deferred tax liability is when that difference results in greater tax expense on the financial statements than taxes payable on the tax return.   The deferred tax liability for firm 1 = $180,000 tax expense - $160,000 taxes payable = $20,000   A deferred tax asset is when that difference results in lower taxes payable on the financial statements than on the tax return.   The deferred tax asset for firm 2 = $200,000 taxes payable - $196,000 tax expense = $4,000 

This question tested from Session 9, Reading 38, LOS f

 

Answer 57 

The correct answer was B)

Under the average cost method, goods available for sale (inventory plus purchases) are valued at their weighted average cost per unit. Camden’s goods available for sale cost an average of [(40 × $600) + (80 × $625) + (100 × $650) + (120 × $675)] / 340 = $647.06 each. Cost of goods sold for 2001 was 160 × $647.06 = $103,530. 

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

 

Answer 58 

The correct answer was D) 16 years. 

Average age of fixed assets = accumulated depreciation / annual depreciation = 48 / 3 = 16 years. 

This question tested from Session 9, Reading 37, LOS c

 

Answer 59 

The correct answer was A) Debt denominated in a foreign currency. 

Debt denominated in a foreign currency may be optimal for the firm if it has future cash flows in that currency. By matching the currency of this cash flow to future liabilities, the firm may hedge some currency risk that they would otherwise have. There is no information provided to suggest that this debt instrument would also lower Hanna’s interest expense. Adding a conversion option, an exchange option, or attaching warrants will all decrease the interest rate bondholders will require on the debt issue.

This question tested from Session 9, Reading 39, LOS e, (Part 2)

 

Answer 60 

The correct answer was B) Reinvestment ratio           Cash-to-income ratio 

The reinvestment ratio measures a firm’s ability to acquire long-term assets with cash flows from operations. In contrast, the investing and financing ratio, which is more comprehensive, measures the firm’s ability to purchase assets, satisfy debts, and pay dividends.

The cash-to-income ratio measures the ability to generate cash from a firm’s operations and is a performance ratio for cash flow analysis purposes. The debt payment ratio measures the firm’s ability to satisfy long-term debt with cash flow from operations but it is more of a coverage ratio than a performance ratio.

This question tested from Session 8, Reading 34, LOS i, (Part 2)

 

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