考前猜题题目答案版一级

201712月考前猜101（题目+答案201712月考前猜101（题目+答案完整版WayneRUBY,aCFACharterholder,isadirectorofbrokeragedepartmentofainvestmentbankwhoestablishedastrictcompliancesystemregardinginvestmentprocess.Someonetoldhimthatamemberofhisteam,MaxCHANG,tradingwithmaterialnonpublicinformation.DidWaynecomplywiththeCFAInstituteCodeofEthicsandStandardsProfessionalItdependsonwhetherWaynemakesreasonableeffortstoensurehissubordinatecompliancewithlawsandItdependsonwhetherWayneadoptsthematerialnonpublicWaynedoesnotviolateanystandardssincehehasalreadyestablishedastrictcompliancesystem.Solution:AccordingtoStandardIV(C)ResponsibilitiesofSupervisors,supervisorsshouldmakereasonableeffortstoensurethatanyonesubjecttotheirsupervisionorauthoritycomplieswithapplicablelaws,rules,regulations,andtheCodeandStandards.Membersorcandidatesshouldimplementeducationandtrainingprogramsandestablishincentivesforemployees.Inthiscase,WayneshouldnotonlyestablishcompliancesystembutalsoensurethatallthepeoplecomplywiththesystemthroughperiodicGeraldineAllen,aCFACandidate,currentlyworksataregisteredinvestmentcompanyasequityanalystwhilegettinganofferfromasmallTrustCompanyasapart-timeconsultant.ThebestpracticeforAllenisto:RejecttheNotifyhisclientwithwrittenreport.Notifyhisemployerwithwrittenreport.Solution:ThebestpracticeistoavoidallpotentialoractualconflictsofIncludedinStandardIV(A)istherequirementthatmembersandcandidatesabstainfromindependentcompetitiveactivitythatcouldconflictwiththeinterestsoftheiremployer.AlthoughStandardIV(A)doesnotprecludemembersorcandidatesfromenteringintoindependentbusinesswhilestillemployed,membersandcandidateswhoplantoengageindependentpracticeforcompensationmustnotifytheiremployerandindependentpracticeforcompensationmustnotifytheiremployeranddescribetheofservicestheywillrendertoprospectiveindependentclients,theexpecteddurationoftheservices,andthecompensationfortheservices.Membersandcandidatesshouldnotrenderservicesuntiltheyreceiveconsentfromemployertoallofthetermsofthearrangement.Comparedwiththeotheroption,rejectthepart-timejobofferwouldbethebestpracticeforAllen.MalcolmYoung,aCFACharterholder,isaresearchanalystwhowritesnumerousratingcompaniesinthebankingindustry.Hisreportsbasedonvarioussourcessuchasinterviewswithtargetcompanies’topmanagers,customersurveysandsecondaryresearchfromanalystcoveringrelatedindustries.Nevertheless,hiscompanyrequirestokeeptherecordatleast5years.Underthiscircumstance,howmanyyearsshouldYoungrecordreportaccordingtotheStandardsof5710Solution:Ifnootherregulatorystandardsorfirmpoliciesareinplace,theStandardrecommenda7-yearminimumholdingperiod;Iftherearetheregulatorystandardorfirmpoliciesforrecorderretention,thefirmshouldcomplywiththelaworthefirm’spoliciesanddiscloseWhichofthefollowingisleastlikelyarequirementoftheGIPSstandards?Firmspresentanadditionalyearofperformanceeachyear,buildinguptoaminimumofyearsofGIPScompliantpresentaminimumoffiveyearsofannualinvestmentperformancecompliantwiththeGIPSstandards.havetheirperformancerecordsverifiedbyanindependentthirdSolution:Itisarecommendationbutnotarequirementthatfirmsobtainindependentthird-partyverificationtoclaimGIPScompliance.MichaelPapisisthechiefinvestmentofficerofhisstate’sretirementfund.Thefundalwaysusedoutsideadvisorfortherealestateallocation,alwaysusedoutsideadvisorfortherealestateallocation,andthisinformationispresentedinallfundcommunications.WhenshouldMichaelupdatehisinvestmentOnlypriortomaterialUpdateUpdateannuallyandalsopriortomaterialSolution:AccordingtoStandardIII(C)Suitability,updatingtheIPSshouldberepeatedatleastannuallyandalsopriortomaterialchangestoanyspecificinvestmentrecommendationsoronbehalfoftheCalebSmith,aninvestmentadviser,hasaclientLarryRobertsonwhohasacomparativerisktoleranceandshewantsonlytoachieveasteadyrateofreturnwithstableincome.Oneday,CalebgotapreciousopportunitytoinvestinXstockwhichcouldgeneratehighrateofreturnwithzerodividendpolicy.Aftercomprehensivelyanalyzingandassessing,tograbthischance,CalebimmediatelydecidedtopurchaseXstockforLarry.AccordingtotheInstituteCodeofEthicsandStandardsofProfessionalConduct,CalebmostlikelySolution:StandardIII(A)Loyalty,Prudence,andCareMembersandcandidatesoperatinginthisblendedcontextwouldcomplywiththeirobligationsbyrecommendingtheallowableproductsthatareconsistentwiththeclient’sobjectivesandrisktolerances.StandardIII(C)SuitabilityTheresponsibilitiesofmembersandcandidatestogatherinformationandmakeasuitabilityanalysispriortomakingarecommendationortakinginvestmentactionfallonthosemembersandcandidateswhoprovideinvestmentadviceinthecourseofanadvisoryrelationshipwithaclient.Underthiscircumstance,SmithviolatesStandardIII(A)Loyalty,Prudence,andandStandardIII(C)AccordingtotheGIPS,whichofthefollowingstatementsaboutcompositeconstructionleastAllactual,fee-paying,discretionaryportfoliomustbeincludedinatleastNon-fee-payingdiscretionaryportfoliomaybeincludedinaNon-discretionaryportfoliosmaybeincludedinafirm’sNon-discretionaryportfoliosmaybeincludedinafirm’sSolution:Ciscorrectbecausenon-discretionaryportfoliosmustnotbeincludedinaElizabethLevensonisaperformanceanalystforTorreyInvestmentFunds.ElizabethcompletedareportwithFrankwhowasapreviousemployeeinTorreyInvestmentFundsandreleasedthisreportsolelyunderhername.DoesElizabethviolateanyCFAInstituteofProfessionalSolution:AccordingtoStandardI(C),misrepresentation,membersorcandidatesmayuseresearchconductedormodelsdevelopedbyotherswithinthesamefirmwithoutcommittingaviolation.However,researchandmodelsdevelopedwhileemployedbyafirmarethepropertyofthefirm.Thefirmretainstherighttocontinueusingtheworkcompletedafteramemberorcandidatehaslefttheorganization.Nonetheless,memberorcandidatecannot,however,reissueapreviouslyreleasedreportsolelyunderhisorhername.Inthiscase,thereportwasfinishedbyElizabethandFrank.Hence,ElizabethhastherighttoissuethesolelyunderherDonnaHensleyandJoannaWhitearebothmacroeconomicanalystsinGreatenDonnajustfinishedananalysisaboutforecastingNetherlands2016-2021GDPgrowthratecitedoriginalideasfromJoanna’sanalysisbutdiscussedaboutthetopicfromadifferentperspective.DonnafinishedheranalysisandsenttoherclientswithoutacknowledgingJoanna.AccordingtotheCFAInstituteCodeofEthicsandStandardsofProfessionalConduct,DonnamostlikelySolution:AccordingtoStandardI(C)Misrepresentation,Membersandcandidatesmustnotcopyrepresentastheirown)originalideasorrepresentastheirown)originalideasormaterialwithoutpermissionandmustandidentifythesourceofideasormaterialthatisnottheirown.Therefore,Donnaviolatemisrepresentationduetocopyoriginalideawithoutacknowledging.Ailey,CFA,isdesignatedasanewsupervisorinresearchdepartmentofalargeadvisorycompany.Thiscompanyhasalargeresearchdepartmentconsistingof100members,soshedividestheteaminto10groupswith10teamleadersselectedforeachgroup,thenshedelegatessupervisingresponsibilityto10teamleaders.Whichofthefollowingshouldbeunderher100team10team90membersotherthan10teamSolution:StandardIV(C)statesthatmembersandcandidatesmustpromoteactionsbyallemployeesundertheirsupervisionandauthoritytocomplywithapplicablelaws,rules,regulations,firmpoliciesandtheCodeandGeraldineAllencurrentlyworksataregisteredinvestmentcompanyasanequityWithoutnoticetoheremployer,shestartsherownbusinessthatwillbeincompetitionwithheremployer’s.Shecompletesthepreparingstuffwiththefirm’sfacilitiesinherpersonaltime.AccordingtotheCFAInstituteCodeofEthicsandStandardsofProfessionalConduct,AllenmostlikelyDisclosureofconflictsSolution:Whenmembersandcandidatesareplanningtoleavetheircurrentemployer,employeesmustnotengageinanyactivitiesthatwouldconflictwiththisdutyuntiltheirresignationbecomeseffective.Alleninvolvedinstartingnewbusinesscompetingwithheremployer,whichviolatesStandardIV(A) StevenSwansonisaperformanceanalystintheinvestmentresearchdepartmentofandCompany.Inthepastoneyear,theinvestingperformanceinthewholecompanyismoderate.Tomaketheperformanceseemtobemuchmorefavorable,Stevenadjustedoriginalbenchmark.AccordingtotheCFAInstituteCodeoforiginalbenchmark.AccordingtotheCFAInstituteCodeofEthicsandStandardsSolution:TheCandidateviolatedStandardI(C)-Misrepresentation.BasedonStandardI(C)Misrepresentation,membersandcandidatesmaymisrepresentthesuccessoftheirperformancerecordthroughpresentingbenchmarksthatarenotcomparabletotheirstrategies.BasedonStandardI(D)Misconduct,anypracticesimpactprofessionalintegrity,orcompetencewillberegardedasaviolationofStandardsofProfessionalBeforehiringanemployee,theemployershoulddoreferencechecktoViolatingLoyalty,Prudence,andCareSolution:BasedonStandardI(D),checkreferencesofpotentialemployeestoensurethattheyaregoodcharacterandnotineligibletoworkintheinvestmentindustrybecauseofpastinfractionsofthelaw.BradleyAmes,awell-knownandrespectedanalyst,followsthehigh-techindustry.Incourseofhisresearch,hefoundthatasmall,relativelyunknowncompanywhosesharesaretradedoverthecounterhasjustsignedsignificantcontractswithsomecompanyhefollows.Afterconsiderableamountofinvestigation,hewrotearesearchreportonthesmallcompanyandrecommendpurchaseofitsshares.HesenthisreporttoallclientsthroughemailandthenmadesometelephonecallswithVIPs.AccordingtotheCFAInstituteCodeofEthicsStandardsofProfessionalConduct,BradleymostlikelySolution:BasedonStandardIII(B)Solution:BasedonStandardIII(B)FairDealing,membersandcandidatesmayprovidemorespecialized,orin-depthservicetoclientswhoarewillingtopayforpremiumservicesthroughhighermanagementfeesorhigherlevelsofbrokerage.Inthiscase,BradleyfairlydealstheinformationtohisWhensendinginvestmentrecommendationreporttoclientsandprospectiveclients,Solution:StandardVI(B)reinforcestheresponsibilityofmembersandcandidatestogivetheinterestsoftheirclientsandemployerspriorityovertheirpersonalfinancialinterests.Personaltransactionsincludethosemadeforthemember’sorcandidate’sownaccount,forfamily(includingspouse,children,andotherimmediatefamilymembers)accounts,andforaccountsinwhichthememberorcandidatehasadirectorindirectpecuniaryinterest,suchasatrustorretirementQuantitativeAT-billhasa120-dayholdingperiodyieldof2%.WhichofthefollowingQuantitativeAT-billhasa120-dayholdingperiodyieldof2%.Whichofthefollowingstatementsmostaccurateaboutbondequivalentyield(BEY)andeffectiveannualrateBEYisgreaterthanBEYissmallerthanBEYisequaltoSolution:(1+0.0621)0.513.06%,theBEY23.06%WhichofthefollowingstatementsabouttypeIerroristhemostTheprobabilityoftypeIerrorisequaltothesignificanceTheprobabilityoftypeIerrorisequaltothepowerofTheincreaseofsamplesizewillnotchangetheprobabilityoftypeISolution:TheprobabilityofaTypeIerrorintestingahypothesisisdenotedbytheGreekletterThisprobabilityisalsoknownasthelevelofsignificanceofthetest.TheprobabilityoftypeIerroristofalselyrejectthenullhypothesis.Whichofthefollowingiscorrectaboutp-TheprobabilitytowronglyrejectthenullhypothesiswhenitisactuallytruebygivenThesmallestlevelofsignificancetorejectthealterativehypothesisThelargestlevelofsignificancetorejectthenullhypothesisSolution:Thep-valueisthesmallestlevelofsignificanceatwhichthenullhypothesiscanberejected.P-valueisalsotheprobabilitytowronglyrejectthenullhypothesiswhenitisactuallytruethegivenAsthedegreesoffreedomincrease,thestandarddeviationoft-getslargerandapproaches1asaAsthedegreesoffreedomincrease,thestandarddeviationoft-getslargerandapproaches1asagetssmallerandapproaches1asalimitstaysunchangedSolution:Asthedegreeoffreedomgetslarger,theshapeoft-distributionapproachesnormaldistributionTheCovariancematrixforthereturnsofassetA,BandCislistedCalculatethecorrelationbetweenassetCandThecovariancebetweenthereturnsofBandCis38.ThestandarddeviationofthereturnofassetBis811/2=9,thatofAssetCis4411/2=21.Thecorrelationρ(ReturnonB,ReturnonC)is38/(9)(21)=0.201,roundedto0.20.A100-dayT-billhasaneffectiveannualyieldof4.80%.ItsbankdiscountyieldisclosestSolution:HPR（1+HPR）（365/100）1+4.8%第二步求出这张T-bill的买入价，PV=100/（1+1.29%）=98.72；第三步求出bankdiscountrate，R=（100-Jurgenisconsideringtwostrategiestoinvesthisonemilliondollarsinto100differentABCABCStrategy1consistsofbuyingallthe100differentassetswithequalweightsandgetsaStrategy1consistsofbuyingallthe100differentassetswithequalweightsandgetsareturn,whilestrategy2consistsofrandomlychoosingoneassetandgetsitsentirereturn.Whichstrategyhasalowervolatility?Solution:Assumethesamplevarianceisσ2,accordingtocentrallimittheorem,thevarianceofmeandistribution=σ2/n,whichisWhichofthefollowingismostlikelythemode,meanandmedianofaModeis2.0,medianis2.2,andmeanisModeis2.6,medianis2.2andmeanis2.0.Modeis0.0,medianis2.0,andmeanisSolution:Lognormaldistributionispositivelyskewed,whichindicatesmode<median<mean.Inaddition,lognormaldistributionisboundedbyzero,sothemode,meanandmedianmustWhichofthefollowingisasentimentindicatoroftechnicalarmsindexSolution:Put/Callratio:Theput/callratioisputoptionvolumedividedbycallvolume.Increasesintheput/callratioindicateamorenegativeoutlookforthepriceoftheasset.Thisratioisgenerallyviewedasacontrarianindicator.Extremelyhighratiosindicatestronglybearishinvestorsentimentandpossiblyanoversoldmarket,whileextremelylowratiosindicatestronglybullishsentimentandperhapsanoverboughtmarket.CBOEVolatilityIndex:VIXmeasuresthevolatilityofoptionsontheS&P500index.HighlevelsoftheVIXsuggestinvestorsfeardeclinesinthestockTechnicalanalystsmostofteninterprettheVIXinacontrarianway,viewingapredominantlybearishinvestoroutlookasabullishsign.VIXisusuallyusedwithtrend,pattern,oroscillator,contrarianindex.HighlevelsoftheVIXsuggestinvestorsfeardeclinesinthestockTechnicalanalystsmostofteninterprettheVIXinacontrarianway,viewingapredominantlybearishinvestoroutlookasabullishsign.VIXisusuallyusedwithtrend,pattern,oroscillator,contrarianMargindebt:Whenstockmargindebtisincreasing,investorsareaggressivelybuyingandstockpriceswillmovehigherbecauseofincreaseddemand,indicatingabullishmarket.Fallingpricesmaytriggermargincallsandforcedselling,therebydrivingpricesevenlower.Ifmargindebtreachesitsbottomandturnsup,itisasignofbullish.Shortinterestratio:Thenumberofsharesofaparticularsecuritythataresoldshortiscalled“shortShortinterestratio=Shortinterest/AveragedailytradingAhighshortinterestratiomeansinvestorsexpectthestockpricetodecrease,italsoimpliesfuturebuyingwhenshortsellersmustreturntheirborrowedshares.Iftheaccuracyofasampleenhanceswhenthesizeisbecominglarger,whichofcharacteristicdoesitSolution:Aconsistentestimatorisoneforwhichtheaccuracyoftheparameterestimateincreasesasthesamplesizeincreases.Efficiencyrepresentsthatthevarianceofitssamplingdistributionissmallerthanalltheotherunbiasedestimatorsoftheparameteryouaretryingtoestimate.UnbiasednessindicatesthattheexpectedvalueoftheestimatorisequaltotheparameteraretryingtoAnanalystgatheredthefollowingIftherisk-freerateofreturnis3.0percent,whichportfolio’scoefficientofvarianceMeanReturn12TheSolution:Sharperatio=[E(RpTheSolution:Sharperatio=[E(Rp)-rf]/σ,basedontheSharperatiowecangettheσ=[E(Rp)-rf]/Sharpeσ1=(9.0%-3.0%)/30.00%=CV=σ/X,CV1=20.0%/9.0%=2.2222,CV2=25.0%/12.0%=Theportfolio1’sCVisTotestthedifferencebetweenthevariancesoftwonormallydistributedpopulations,mostappropriatetestist-Solution:AnF-testisusedtoconducttestsconcerningthedifferencebetweenthevariancesoftwonormallydistributedpopulationswithrandomindependentsamples.SupposeMexicoexportsvegetablestoBrazilandimportsflashlightsusedforminingBrazil.TheoutputSupposeMexicoexportsvegetablestoBrazilandimportsflashlightsusedforminingBrazil.TheoutputperworkerperdayineachcountryisasWhichcountryhasacomparativeadvantageintheproductionofSolution:TheopportunitycostofavegetablesinColombiais0.286unitofFlashlights(20÷70).TheopportunitycostofavegetablesinBrazilis0.5unitofFlashlights(40÷80).TheopportunitycostofavegetablesinMexicois0.33unitofFlashlights(20÷60).ColombiahasalowestopportunitycostandhasacomparativeadvantageintheproductionofWhichofthefollowingisleastlikelytobeacharacteristicofaGiffenItsincomeeffectisItsdemandcurveslopesupward.ItssubstitutioneffectisSolution:AGiffengoodisaninferiorgood.Allinferiorgoodshaveanegativeincomeeffect(lessispurchasedasincomerises).Whilethesubstitutioneffectisalwayspositiveforallgoods,foraGiffengoodtheincomeeffectissostrongandsonegativethatitoverpowersthesubstitutioneffect.Theresultisthatasitspricedeclines,lessofitispurchased:Thisresultsinapositivelyslopedindividualdemandcurve.Therefore,itisleastlikelythattheeffectisWhichoneofthefollowingisalaggingindicatorofthebusinessInventory/salesSolution:Inventory—salesratioisalaggingindicatorwhilebothstockindexandaverageworkinghoursareleadingindicators.GiventhattheslopeSolution:Inventory—salesratioisalaggingindicatorwhilebothstockindexandaverageworkinghoursareleadingindicators.Giventhattheslopeforthedemandcurveisequalto-1,whichofthefollowingstatementmostlikelytobeThepointliestotheleftofthemiddleofthedemandcurvehasahigherThepointliestotherightofthemiddleofthedemandcurvehasahigherelasticity.Thepointliesrightinthemiddleofthedemandcurvehasahigherelasticity.Solution:priceelasticityofdemand=percentchangeinquantitydemanded=%ΔQ=-1percentchangeinQThepointwithahigherpriceandlowerquantityhasahigherFeesfrompatentsandcopyrightsonnewtechnologywouldbecapturedinwhichofCurrentaccount.Solution:Thecurrentaccountcanbedecomposedintofoursub-Merchandisetradeconsistsofallcommoditiesandmanufacturedgoodsbought,orgivenServicesincludetourism,transportation,engineering,andbusinessservices,suchlegalservices,managementconsulting,andaccounting.Feesfrompatentsandonnewtechnology,software,books,andmoviesarealsorecordedintheservicesIncomereceiptsincludeincomederivedfromownershipofassets,suchasandinterestpayments;incomeonforeigninvestmentsisincludedinthecurrentbecausethatincomeiscompensationforservicesprovidedbyforeigninvestments.WhenaGermancompanybuildsaplantinChina,forinstance,theservicestheplantgeneratesareviewedasaserviceexportfromGermanytoChinaequalinvaluetotheprofitstheplantforitsGermanUnilateraltransfersrepresentone-waytransfersofassets,suchasworkerfromabroadtotheirhomecountryandforeigndirectaidorAmarketwithlowbarriertoentryandsomepricingpowercanbebestdescribedSolution:Long-termsustainableAmarketwithlowbarriertoentryandsomepricingpowercanbebestdescribedSolution:Long-termsustainablegrowthofaneconomyisleastlikelytoresultfromgrowththesupplyofcapitalperunitofSolution:Thesustainablerateofeconomicgrowthisameasurementoftherateofincreaseintheeconomy'sproductivecapacity.Aneconomy'ssustainablerateofgrowthdependsonthegrowthrateofthelaborsupplyandthegrowthrateoflaborproductivity.Duetodiminishingmarginalproductivity,aneconomygenerallycannotachievelong-termsustainablegrowththroughcontinuallyincreasingthestockofcapitalrelativetolabor(i.e.,capitalAccordingtothedefinitionofHerfindahl-HirschmanIndex(HHI),whichstatementislikelytobeHHIisthesummedsquareofthepercentagemarketshareofeachHHIusesthedataoverthelargest50NumberofManyManySingleBarrierstoNatureofsubstitute substitutesbut substitutesor PricePricing HHItakesthebarriertoHHItakesthebarriertoentryintoSolution:TheHerfindahl-HirschmanIndex(HHI)isthesquareofthepercentagemarketshareoffirmsummedoverthelargest50firmsanditdoesn’ttakethebarriertoentryFromthebeginningof2015totheendingof2015,theannualvalueoffinalgoodsservicesforcountryXincreasedfrom€100billionto€120billion.Overthattimeperiod,GDPdeflatorincreasedfrom111to135.Overtheyear,therealinflationforcountryXisSolution:Realinflation=(GDPdeflatorattheendofyear2015-GDPdeflatoratthebeginningofyear2015)/GDPdeflatoratthebeginningofyear2015=(135-111)/111=21.62%. FinancialReportingandAnalysis(AssumeIFRSapplies FinancialReportingandAnalysis(AssumeIFRSapplies noted，考试时要特别关注这句话此处强调适用的是IFRS，Whenabond’scouponrateislowerthanmarketinterestrate,Amortizationofdiscountincreasesannually.WhenMarketrate>couponrate,thebondisissuedatdiscount.Fordiscountedbond,Amortizationofdiscountwillincreaseyearly.Forthebondwithcouponratehigherthanmarketinterestrate,thentheamortizationMartin,Inc.hadthefollowingtransactionsduringPurchasednewfixedassetsforConverted$70,000worthofpreferredsharestocommonshares.Receivedcashdividendsof$12,000.Paidcashdividendsof$21,000.PurchasingHTMandtradingsecurityofseparately2,000andAssumingMartinfollowsU.S.GAAP,whichofthefollowingamountsrepresentsMartin'scashflowsfrominvestingandcashflowsfromfinancingin20X5,respectively?)CashflowsfromCashflowsfromPurchasednewfixedassetsfor$75,000—cashoutflowfrominvesting.Converted$70,000ofpreferredsharestocommonshares—noncashtransaction.Receiveddividendsof$12,000—cashinflowfromoperationsPaiddividendsof$21,000—cashoutflowfromMortgagerepaymentof$17,000—cashoutflowfromCFF=-21,000-17,000=-During2010,CompanyAsoldapieceCFF=-21,000-17,000=-During2010,CompanyAsoldapieceoflandwithacostof$6milliontoCompanyBformillion.CompanyBmadea$2milliondownpaymentwiththeremainingbalancetobepaidoverthenext5years.Ithasbeendeterminedthatthereissignificantdoubtabouttheabilityandcommitmentofthebuyertocompleteallpayments.CompanyAwouldmostlikelyaprofitin2010$4millionusingtheaccrual$0.8millionusingtheinstallment$2millionusingthecostrecoverySolution:Undertheinstallmentmethod,theportionofthetotalprofitthatisrecognizedineachperiodisdeterminedbythepercentageofthetotalsalespriceforwhichthesellerhasreceivedcash.ForCompanyA2/10x4=$0.8million.Note,costrecoverymethodcouldbeusedinthisbutthereportedprofitwouldbeInaperiodofdecreasingprices,whencomparedwithacompanythatusesLIFO,ausingFIFOwillmostlikelyHigherendingSameendingSolution:InperiodsofdecreasingpricesFIFOresultsinalowerinventoryvalueandahighercostofgoodssoldandthereforealowernetincome.Thecompany’sLIFOreserveattheendof2010is$1000lessthanitatthebeginningofIfthecompanychangesintoFIFOmethod,thecostofgoodssoldattheendof2010IncreasebyBenochangeSolution:COGSFIFO=COGSLIFO–△LIFOreserve=COGSLIFO+Acompanyenteredintoacapitalleaseatthebeginningof2015,anditwillAcompanyenteredintoacapitalleaseatthebeginningof2015,anditwillneedto$2,500attheendofeachofthefollowingfiveyears.Thereisnoresidualvalue,andtheannualinterestrateis8%.Theinterestexpensefortheyearof2015isclosestto:Solution:N=5,I/Y=8,PMT=2,500,FV=0,CPTPV=-9981.7751Int1=PV*0.08=798.5420Whenafirmvalueitsinvestmentproperty,theunrealizedgainisrecognizedinitsstatement,whichofthefollowingmodelisthecompanyusedinCostSolution:Investmentproperty.UnderIFRS,investmentpropertyincludesassetsthatgeneraterentalincomeorcapitalappreciation.U.S.GAAPdoesnothaveaspecificdefinitionofinvestmentproperty.UnderIFRS,investmentpropertycaneitherbereportedatamortizedcost(justlikePP&E)orfairvalue.Underthefairvaluemodel,anychangeinfairvalueisrecognizedinincomeAfirmincurredthefollowingcostsrelatedtoproductionduringthepastThetotalcapitalizedinventorycost(inUS$millions)fortheyearisclosest$RawmaterialsLaborWarehousingcostsforfinishedUnderIFRS,inventorywrite-downby20in2015andin2016thevalueofinventoryby30,whichfollowingUnderIFRS,inventorywrite-downby20in2015andin2016thevalueofinventoryby30,whichfollowingamountshouldrecordinI/SinIncreasebyIncreaseby30Solution:UnderIFRS,thevalueofinventorycouldbewrite-upandagainisrecognizedintheI/S.However,thevalueofwrite-upcouldnotexceedthepreviouswrite-downvalue.AnanalystcollecteddataaboutacompanyasThepreferredstockcanbeconvertedto10,000commonstocks,whilethedebtisconvertible.ThedilutedearningspershareisclosestSolution:Iftheconvertiblepreferredshareswereconvertedtocommonstocks,therewouldbenopreferreddividendspaid.Thus,weshouldaddbacktheconvertiblepreferreddividendsthathadpreviouslybeensubtractedfromnetincomeinthenumerator.BasicEPS=(netincome–dividendfrompreferredstocks)/averageweightednumberNetDebtoutstandingwithacouponrateofPreferredstockswithdividendrateof$RawLaborFreight-sharesissued=(1,000,000–1,000,000×0.04)/500,000=DilutedEPS=(netincome–dividendfrompreferredstocks+dividendfrompreferred/(averageweightednumbersharesissued=(1,000,000–1,000,000×0.04)/500,000=DilutedEPS=(netincome–dividendfrompreferredstocks+dividendfrompreferred/(averageweightednumberofsharesissued+sharesfromconversionofpreferredstocks)=(1,000,000–1,000,000×0.04+1,000,000×0.04)/(500,000+10,000)=1.961.96>1.92,dilutedEPSisThefollowinginformationisaboutacompanyJanuary1Attheendof2007,thebalancesheetshouldSolution:Straightlinedepreciationexpense=(100,000–20,000)/10=8,000DDBdepreciationexpense=(2/8)*100,000=25,000DTL=30%*(25,000–8,000)=Thecashpaidtosupplierin2013isclosestSolution:CostofGoodsTax2007AcquisitionDepreciationStraight-Double-108Cashpaidtosuppliers=12M+(8.5M–9.2M)—(5.7M–5M)=AnanalystisstudyingCashpaidtosuppliers=12M+(8.5M–9.2M)—(5.7M–5M)=AnanalystisstudyingtheimpairmentofthemanufacturingequipmentofWLPU.K.-basedcorporationthatfollowsIFRS.HegathersthefollowinginformationabouttheTheamountoftheimpairmentlossonWLPCorp.'sincomestatementrelatedtoTheimpairmentlossequalsImpairment=max(Recoverableamount;Valueinuse)–Netcarrying=max(16,800,000–800,000;14,500,000)–19,100,000=Fixed-chargecoverageratio=2.1,interestpayment2Solution:BasedontheEBITleaseFixedchargecovin