CFA Level 1 － Mock Exam 2 模拟真题－Q61-65 face, style, black, class

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61、Assume U.S. GAAP (generally accepted accounting principles) applies unless otherwise noted.
Which of the following is least likely to be a characteristic of an effective financial reporting framework?

 Select exactly 1 answer(s) from the following:

 A. Consistency

 B. Transparency

 C. Comparability

 D. Comprehensiveness

 

62、Assume U.S. GAAP (generally accepted accounting principles) applies unless otherwise noted.
An analyst has gathered the following data about Geneva Group Inc. and the health care industry in which it operates:

	Geneva Group ($ millions)	Industry Averages as a percent of sales
Revenues	5,000	100%
Cost of goods sold	2,100	45%
Operating expenses	1,750	32%
Profit margin	475	9.5%

Which of the following conclusions can the analyst reasonably make? Compared to the industry Geneva:

Select exactly 1 answer(s) from the following:

A. spends less on nonoperating costs and income taxes.

B. has the same cost structure and net profit margin as the industry.

C. is better at controlling product costs, but less effective at controlling operating costs.

D. has a lower gross profit margin than the industry and spends more on its operating costs.

 

63、Assume U.S. GAAP (generally accepted accounting principles) applies unless otherwise noted.
Differences between accrued revenue and expenses and cash flows result in the creation of assets and liabilities. Would each of the following revenue events result in the creation of an asset or a liability when the event originally occurs?

	Revenue is recognized before the cash is received.	Cash is received before the revenue is recognized.
A.	Asset	Asset
B.	Asset	Liability
C.	Liability	Asset
D.	Liability	Liability

Select exactly 1 answer(s) from the following:

A. AnswerA.

B. AnswerB.

C. AnswerC.

D. AnswerD.

 

64、Assume U.S. GAAP (generally accepted accounting principles) applies unless otherwise noted.
Lazlo Ltd, a European-based telecommunications provider, follows IASB GAAP and capitalizes new product development costs. During 2007 they spent

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答案和详解如下：

61 Correct answer is C

“Financial Reporting Standards,” Thomas R. Robinson, Hennie van Greuning, Karen O’Connor Rubsam, Elaine Henry, and MichaelA. Broihahn
2008 Modular Level I, Vol. 3, pp. 122
Study Session 7-31-g
identify the characteristics of a coherent financial reporting framework and barriers to creating a coherent financial reporting network
The characteristics of a coherent financial reporting network are transparency, consistency and comprehensiveness. Comparability is a qualitative characteristic of financial statements.

 

62 Correct answer is C

“Understanding the Income Statement,” Thomas R. Robinson, Hennie van Greuning, Elaine Henry, and MichaelA. Broihahn
2008 Modular Level I, Vol. 3, pp. 181-182
Study Session 8-32-j
evaluate a company’s financial performance using common-size income statements and financial ratios based on the income statement
The gross profit for Geneva = 5,000 - 2,100 = 2,900 or 58%. The gross profit for the industry is 1-.45 = 55%. Therefore, Geneva’s cost of goods sold, or product costs, are lower; they must control them better. Operating costs are $1,750 / 5000 = 35% for Geneva and 32% for the industry, hence they are not as effective at controlling their operating costs as the industry.

 

63 Correct answer is B

“Financial Reporting Mechanics,” Thomas R. Robinson, Hennie van Greuning, Karen O’Connor Rubsam, Elaine Henry, and MichaelA. Broihahn
2008 Modular Level I, Vol. 3, pp. 53, 56
“Understanding the Balance Sheet,” Thomas R. Robinson, Hennie van Greuning, Elaine Henry, and MichaelA. Broihahn
2008 Modular Level I, Vol. 3, p. 197
Study Session 7-30-d, 8-33-a
explain the process of recording business transactions using an accounting system based on the accounting equations;
illustrate and interpret the components of the assets, liabilities, and equity sections of the balance sheet, and discuss the uses of the balance sheet in financial analysis
Revenue recognition before the cash is received will result in the creation of an accounts receivable, an asset, whereas when the cash is received before the revenue is recognized a liability, unearned revenue, is created.

 

64 Correct answer is C

“Analysis of Long-Lived Assets: Part I - The Capitalization Decision,” Gerald I. White, AshwinpaulC. Sondhi, and Dov Fried
2008 Modular Level I, Vol. 3, pp. 354-356
Study Session 9-36-a, b
demonstrate the effects of capitalizing versus expensing on net income, shareholders’ equity, cash flow from operations, and financial ratios;
determine which intangible assets, including software development costs and research and development costs, should be capitalized, according to U.S. GAAP and international accounting standards
If all development costs had been expensed then net income would be reduced by the amount spent, and increased by the amortization of the previously capitalized amounts: 225 - 25 + 10 = 210 million. ROA = 210 / 1,875 = 11.2%. CFO would be lower by the amount spent on development 290 - 25 = 265 million. Note: The amortization of previous development costs is a non-cash expense so does not affect cash flow.

 

65 Correct answer is C

“Analysis of Income Taxes,” Gerald I. White, AshwinpaulC. Sondhi, and Dov Fried
2008 Modular Level I, Vol. 3, p. 423
Study Session 9-38-a
explain the key terms related to income tax accounting and the origin of deferred tax liabilities and assets
Taxes payable is the current liability resulting from the current period taxable income based on taxable income.

 

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