Question 61 Selected information from Hometown, Inc.’s financial statements for the year ended December 31 included the following (in $ thousands):
Hometown used the last in, first out (LIFO) inventory cost flow assumption. If Hometown changed from LIFO to first in, first out (FIFO), its current ratio would: A) increase to 2.63. B) be unchanged. C) decrease to 1.50. D) increase to 2.99.
Question 62 The calculation of ratios would be best classified under which of the following steps in the financial statement analysis framework? A) Process the data. B) Gather the data. C) Analyze the data. D) Interpret the data.
Question 63 Granite, Inc. owns a machine with a carrying value of $3.0 million, a salvage value of $2 million, and a present value of future cash flows of $1.7 million. The asset is permanently impaired. Granite should: A) immediately write down the machine to its salvage value. B) immediately write down the machine to its present value of future cash flows. C) write down the machine to its present value of future cash flows as soon as it is depreciated down to salvage value. D) not write down the machine's value until it is sold or removed from service.
Question 64 Schachter Inc. has issued a bond at par that can be called prior to maturity at 102% of face value. Since the issuance of the bond, interest rates have fallen such that the present (market) value of the bond’s future cash flows has risen to 106% of face value. Using only this information, which of the following accounting and economic impacts of calling the bond are most appropriate, respectively? Accounting treatment Economic impact A) Loss Gain B) Loss Loss C) Gain Gain D) Gain Loss
Question 65 Which of the following measurements bases for property, plant, and equipment would a successful manufacturing firm be most likely to use for financial statement reporting? A) Fair value. B) Standard cost. C) Net realizable value. D) Historical cost.
[此贴子已经被作者于2008-11-7 17:59:02编辑过] | 
发表于 2008-5-10 13:10
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