Whichof,hefollowingwillmostlikelyresultinhigherearningsquality?
A: Usingaggressivepensionassumptions.
B: Structuringaleasetransactiontoavoidcapitalizationonthebalancesheet.
C: Recognizingrevenueoncetheearningsprocessiscomplete.
A: Usingaggressivepensionassumptions.
B: Structuringaleasetransactiontoavoidcapitalizationonthebalancesheet.
C: Recognizingrevenueoncetheearningsprocessiscomplete.
举一反三
- Arealestateinvestorisconcernedaboutrisinginterestratesanddecidestopaycashforapropertyinsteadoffinancingthetransactionwithdebt.Whatisthe<em>mostlikely</em>effectofthisstrategy? A: Inflationriskiseliminated. B: Riskofchanginginterestratesiseliminated. C: Riskisreducedbecauseoflowerleverage.
- Asoutputquantitiesexpandinanindustrywithadownward-slopinglong-runindustrysupplycurve,whatisthe<em>mostlikely</em>long-runeffectontheequilibriumsellingpriceperunitoftheindustry'soutput? A: Increase,becauseofupwardpressureoninputprices. B: Decrease,becauseoflowerinputcostsperunitofoutput. C: Noeffect,becausesellingpriceisonlyaffectedintheshortrun.
- Aputoptionwithanexercisepriceof$45istradingfor$3.50.Thecurrentstockpriceis$45.Whatisthe<em>mostlikely</em>effectontheoption'sdeltaandgammaifthestockpriceincreasesto$50? A: Bothdeltaandgammawillincrease. B: Bothdeltaandgammawilldecrease. C: Onewillincreaseandtheotherwilldecrease.
- Gotham,whichpurchased35%ofKlestenResearchCenterin2005,restatesthelastthreeyearsoffinancialstatementstoaccountforthepurchase.Gothamhasnotelectedthefairvalueoption.InthefiscalyearendedDecember2008,whatisthe<em>mostlikely</em>effecttheKlesteninvestmentwouldhaveonGotham'sfinancialstatements? A: Decreaseincomeandassets. B: Increaseincomeandassets. C: Decreaseincomeandincreaseassets.
- Aspartofitsworkingcapitalmanagementprogram,RotanCorporationhasanaccountspayablefinancingarrangementwiththeFirstNationalBank.ThebankpaysRotan'svendorswithin30daysoftheinvoicedate.Rotanreimbursesthebank90daysaftertheinvoiceisdue.Ignoringinterest,whatisthe<strong><em>mostlikely</em></strong>effectonRotan'soperatingcashflowandfinancingcashflowwhenthebankisrepaid? A: Bothwilldecrease. B: Neitherwilldecrease. C: Onlyonewilldecrease.