[LEVEL II 模拟试题7] Mock Level II - Question 21-25 模拟试题, class

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Question 21 - 28951

Which of the following assumptions is NOT needed to justify the extended capital asset pricing model?

A)	Investors throughout the world have identical consumption baskets.
B)	Purchasing power parity holds exactly at any point in time.
C)	The rate of inflation must be identical throughout the world.
D)	World markets are integrated (i.e. no segmentation).

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Question 22 - 3179

Which of the following statements about bonds is FALSE?

A)	For bonds sold at a premium, the interest expense will decrease over time.
B)	The effective interest rate is the bond's coupon rate of interest.
C)	The interest expense is the bond's carrying value (par - the unamortized discount, or + the unamortized premium) at the beginning of the period multiplied by the effective interest rate.
D)	If a bond is reacquired prior to maturity the difference between the cash paid to reacquire the bond and the carrying value of the bond on the books is listed as an extraordinary gain or loss on the income statement.

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Question 23 - 3095

First in, first out (FIFO) inventory equals:

A)	the change in LIFO reserve - LIFO ending reserve.
B)	LIFO cost of goods sold - changes in LIFO reserve.
C)	LIFO profit + (change in LIFO reserve)(1 - t).
D)	LIFO inventory + LIFO reserve.

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Question 24 - 23538

Which statement best describes the use of segment data? It provides:

A)	information on the pre-merger performance of operating units.
B)	information on currency translations of foreign operating units.
C)	information on operating units by specific lines of business.
D)	detailed information on the operating expenses of an operating unit.

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Question 25 - 27950

Which of the following subsidiary ratios will be affected by the translation adjustment under the all-current method?

A)	Gross margin.
B)	Return on equity.
C)	Operating margin.
D)	Net profit margin.

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Question

21 - #28951

Your answer: B was incorrect. The correct answer was C) The rate of inflation must be identical throughout the world.

The rate of inflation need not be identical throughout the world. In a world where identical consumption baskets exist and where purchasing power parity holds exactly at any point in time, exchange rate changes would mirror inflation differences between any two countries.

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Question

22 - #3179

Your answer: B was correct!

The effective rate is the current market rate at the time the bond was issued.

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Question

23 - #3095

Your answer: B was incorrect. The correct answer was D)

LIFO inventory + LIFO reserve.

To convert LIFO inventory balances to a FIFO basis, simply add the LIFO reserve to the LIFO inventory:

INV_{F =} INV_L + LIFO Reserve

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Question

24 - #23538

Your answer: B was incorrect. The correct answer was C) information on operating units by specific lines of business.

Segment data provides information on the major operating units by a specific line of business.

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Question

25 - #27950

Your answer: A was incorrect. The correct answer was B) Return on equity.

The translation adjustment will affect the book value of equity and therefore the return on equity ratio. The other ratios are pure ratios (both component of the ratio come from the income statement) and are not affected by translation.

[此贴子已经被作者于2007-5-16 11:44:53编辑过]