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Q8. Using the information regarding the accrual ratios of the Soccer and Hockey subsidiaries, which of the following statements is
most appropriate?
A) Hockey’s earnings quality is higher than Soccer’s and its earnings quality is improving compared to Soccer’s.
B) Hockey’s earnings quality is lower than Soccer’s and its earnings quality is deteriorating compared to Soccer’s.
C) Hockey’s earnings quality is higher than Soccer’s but its earnings quality is deteriorating compared to Soccer’s.
Q9. In examining Nolan’s consolidated income statement for 2008, which of the following definitions of earnings result in the same
amount?
A) EBIT and income from continuing operations.
B) Net income and income from continuing operations.
C) EBITDA and income from continuing operations.
Q10. With respect to a hedge undertaken in the Lacrosse subsidiary that utilizes a put option to protect one of its equity investments,
which of the following best describes the accounting treatment for the hedge under U.S. GAAP?
A) Unrealized gains and losses from the derivative are recognized in the income statement.
B) Unrealized gains and losses from the derivative bypass the income statement and are reported in shareholders’ equity as part of other comprehensive income.
C) Realized and unrealized gains and losses from the derivative are recognized in the income statement.
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发表于 2009-3-3 09:41
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