CFA-一級-PROBLEMS()unit-21-27)

1、1. Providing information about the performance and financial position of companies so that users can make economic decisions best describes the role of：A. auditingB. financial reportingC financial statement analysis2. A company s current financial position would best be evaluated using the：A. balane

2、e sheetB. income statementC. statement of cash flows3. A company * s profitability for a period would best be evaluated using the：A. balance sheetB income statementC statement of cash flowspolicies, methods, and estimates used in preparing financial statements are most 1ikely found in the：A. auditor

3、 s reportB. management commentary.C. notes to the financial statements5 Information about management and director compensation would least likely be found in the：A. auditor s reportB. proxy statementC. notes to the financial statements6. Information about a companys objectives, strategies, and signi

4、ficant risks would most 1ikely be found in the：A. auditor s reportB. management commentary.C notes to the financial statements1 What type of audit opinion is preferred when analyzing financial statementsA. Qualified.B. AdverseC Unqualified8. Ratios are an in put into which step in the financial stat

5、eme nt analysis frameworkA. Process dataB. Collect input dataC. Analyze/interpret the processed dataREADING221 Which of the following items would most likely be classified as an operating activityA. Issuance of debtB. Acquisition of a competitorC Sale of automobiles by an automobile dealer2. Which o

6、f the following items would most likely be classified as a financing activityA. Issuance of debtB. Payment of income taxesC Investments in the stock of a supplier3. Which of the following elements represents an economic resourceA. AssetB. Liability.C Owners equity4. Which of the following elements r

7、epresents a residual claimA. AssetB. Liability.C Owners equity5. An analyst has projected that a company will have assets of 2,000 at year-end and liabilities of1,200. The analystf s projection of total owners equity should be closest to：A. 800.B. 2,000.C. 3,200.6. An analyst has collected the follo

8、wing information regarding a company in advance of its yearend earnings announcement (in millions): Estimated net income $ 200Beginning retained earnings $ 1,400Estimated distributions to owners $ 100The an alyst * s estimate of ending reta ined ear nings (in mill ions) should be closest to：A. $1,30

9、0.B. $1,500.C. $1,700.7 An analyst has compiled the following information regarding Rubsam, at year-end 1,000Contributed capital at year-end 500Beginning retained earnings 600Revenue during the year 5,000Expenses during the year 4,300There have been no distributions to owners. The analystf s most li

10、kely estimate of total assets at year-end should be closest to：A. 2,100.B. 2,300.C. 2,800.8. A group of individuals formed a new company with an investment of $500,000 The most likelyeffect of this transaction on the company1 s accounting equation at the time of the formation is anincrease in cash a

11、nd：A. an increase in revenueB. an increase in liabilitiesC an increase in contributed capita19. HVG, LLC paid $12,000 of cash to a real estate company upon signing a lease on 31 December 2005 The payment represents a $4,000 security deposit and $4,000 of rent for each of January 2006 and February 20

12、06 Assuming that the correct accounting is to reflect both January and February rent as prepaid, the most likely effect on HVG s accounting equation in December 2005 is：A. no net change in assetsB. a decrease in assets of $8,000.C a decrease in assets of $12,000.10. TRR Enterprises sold products to

13、customers on 30 June 2006 for a total price of 10,000. The terms of the sale are that payment is due in 30 days The cost of the products was 8,000. The most likely net change in TRR s total assets on 30 June 2006 related to this transaction is：A. 0.B. 2,000.C. 10,000.11. On 30 April 2006, Pinto Prod

14、ucts received a cash payment of $30,000 as a deposit on production of a custom machine to be delivered in August 2006 This transaction would most likely result in which of the following on 30 April 2006A. No effect on liabilitiesB. A decrease in assets of $30,000.C. An increase in liabilities of $30

15、,000.12. Squires & Johnson, Ltd,recorded 250,000 of depreciation expense in December 2005 The most likely effect on the company s accounting equation is：A. no effect on assetsB. a decrease in assets of 250,000.C. an increase in liabilities of 250,000.13. An analyst who is interested in assessing a c

16、ompany s financial position is most likely to focus on which financial statementA. Balance sheetB. Income statementC. Statement of cash flows14. The statement of cash flows presents the flows into which three groups of business activitiesA. Operating, Nonoperating, and FinancingB. Operating, Investi

17、ng, and FinancingC. Operating. Nonoperating, and Investing15. Which of the following statements about cash received prior to the recognition of revenue in the financial statements is most accurate The cash is recorded as：A. deferred revenue, an assetB accrued revenue, a liability.C deferred revenue,

18、 a liability16. When, at the end of an accounting period, a revenue has been recognized in the financial statements but no billing has occurred and no cash has been received, the accrual is to：A. unbilled (accrued) revenue, an assetB. deferred revenue, an assetC unbilled (accrued) revenue, a liabili

19、ty17. When, at the end of an accounting period, cash has been paid with respect to an expense, the business should then record：A. an accrued expense, an assetB. a prepaid expense, an assetC an accrued expense, a liability18. When, at the end of an accounting period, cash has not been paid with respe

20、ct to an expense that has been incurred, the business should then record：A. an accrued expense, an assetB. a prepaid expense, an assetC. an accrued expense, a liability19. The collection of all business transactions sorted by account in an accounting system is referred to as：A. a trial balanceB. a g

21、eneral ledgerC. a general journa 120. If a company reported fictitious revenue, it could try to cover up its fraud by：A. decreasing assetsB increasing liabilitiesC creating a fictitious assetREADING 231. Which of the following is most likely not an objective of financial statementsA. To provide info

22、rmation about the performance of an entityB. To provide information about the financial position of an entityC. To provide information about the users of an entity s financial statements.2. International financial reporting standards are currently developed by which entityA. The IFRS Foundation.B. T

23、he International Accounting Standards BoardC The International Organization of Securities Commissions3. US generally accepted accounting principles are currently developed by which entityA. The Securities and Exchange Commission.B The Financial Accounting Standards BoardC. The Public Company Account

24、ing Oversight Board4. Which of the following statements about desirable attributes of accounting standards boards is most accurate Accounting standards boards should：A. concede to political pressuresB. be guided by a well articulated frameworkC be adequately funded by companies to which the standard

25、s apply.5. A core objective of the International Organization of Securities Commissions is to：A. eliminate systematic riskB. protect users of financial statementsC ensure that markets are fair, efficient, and transparent6. According to the Conceptual Framework for Financial Reporting (2010), which o

26、f the follow ing is not an enhan ci ng qualitative characteristic of information in financial statementsA. Accuracy.B. TimelinessC Comparability7. Which of the following is not a constraint on the financial statements according to the Conceptual Framework (2010)A. UnderstandabilityB. Benefit versus

27、costC. Balancing of qualitative characteristics8. The assumption that an entity will continue to operate for the foreseeable future is called：A. accrual basisB. comparabilityC. going concern.9. The assumption that the effects of transactions and other events are recognized when they occur, not when

28、the cash flows occur, is called：A. releva nee.B. accrual basisC going concern.10. Neutrality of information in the financial statements most closely contributes to which qualitative characteristicA. Re leva nee.B. UnderstandabilityC Faithful representation.11. Valuing assets at the amount of cash or

29、 equivalents paid or the fair value of the con sideration given to acquire them at the time of acquisition most closely describes which measurement of financial statement elementsA. Current costB. Historical costC Realizable value12. The valuation technique under which assets are recorded at the amo

30、unt that would be received in an orderly disposal is：A. current costB. present valueC realizable value13. Which of the following is not a required financial statement according to IAS No. 1A. Statement of financial position.B. Statement of changes in incomeC Statement of comprehensive income14. Whic

31、h of the following elements of financial statements is most closely related to measurement of performanceA. AssetsB. ExpensesC Liabilities15. Which of the following elements of financial statements is most closely related to measurement of financial positionA. Equity.B. Income C. Expenses16. Which o

32、f the follow ing is not a characteristic of a cohere nt financial reporting frameworkA. TimelinessB. ConsistencyC Transparency17. Which of the following is not a recognized approach to standard-settingA. A rules-based approachB. An asset/liability approachC A principles-based approach18. Which of th

33、e following disclosures regarding new accounting standards provides the most meaningful information to an analystA. The impact of adoption is discussedB. The standard will have no material impactC. Management is still evaluating the impactREADING 241. Expenses on the income statement may be grouped

34、by：A. nature, but not by functioruB. function, but not by natureC either function or nature2. An example of an expense classification by function is：A. tax expenseB. interest expenseC cost of goods sold3. Denali Limited, a manufacturing company, had the following income statement information：Revenue

35、 $4,000,000Cost of goods sold $3,000,000Other operating expenses $500,000Interest expense $100,000Tax expense $120,000Denali s gross profit is equal toA. $280,000.B. $500,000.C. $1,000,000.4. Under IFRS, income includes increases in economic benefits from：A. increases in liabilities not related to o

36、wners contributionsB. enhancements of assets not related to owners contributionsC. increases in owners equity related to owners contributions.5. Fairplay had the following information related to the sale of its products during 2009, which was its first year of business：Revenue $1,000,000Returns of g

37、oods sold $100,000Cash collected $800,000Cost of goods sold $700,000Under the accrual basis of accounting, how much net revenue would be reported on Fairplay s 2009 income statementA. $200,000.B. $900,000.C. $1,000,000.6. If the outcome of a long-term contract can be measured reliably, the preferred

38、accounting method under both IFRS and US GAAP is：A. the cost recovery methodB. the completed contract methodC. the percentage-of-completion method1 At the beginning of 20091 Florida Road Construction entered into a contract tobuild a road for the government Construction will take four years The foll

39、owinginformation as of 31 December 2009 is available for the contract：Total revenue according to contract $10,000,000Total expected cost $8,000,000Cost incurred during 2009 $1,200,000Assume that the company estimates percentage complete based on costs incurred as a percentage of total estimated cost

40、s Under the completed contract method, how much revenue will be reported in 2009A. None.B. $300,000.C. $1,500,000.8. During 2009, Argo Company sold 10 acres of prime commercial zoned land to a builder for $5,000,000. The builder gave Argo a $1,000,000 down payment and will pay the remaining balance

41、of $4,000,000 to Argo in 2010 Argo purchased the land in 2002 for $2,000,000. Using the installment method, how much profit will Argo report for 2009A. $600,000.B. $1,000,000.C. $3,000,000.9. Using the same information as in Question 8, how much profit will Argo report for 2009 using the cost recove

42、ry methodA. None.B. $600,000.C. $1,000,000.10. Under IFRS, revenue from barter transactions should be measured based on the fair value of revenue from：A. similar barter transactions with unrelated partiesB. similar non-barter transactions with related partiesC similar non一barter transactions with un

43、related parties11. Apex Consignment sells items over the internet for individuals on a consignment basis Apex receives the items from the own er, lists them for sale on the in ter net, and receives a 25 perce nt commission for any items sold. Apex collects the full amount from the buyer and pays the

44、 net amount after commission to the owner.Unsold items are returned to the owner after 90 days During 2009, Apex had the following information：Total sales price of items sold during 2009 on consig nment was 2,000,000.Total commissions retained by Apex during 2009 for these items was 500,000.How much

45、 revenue should Apex report on its 2009 income statementA. 500,000.B. 2,000,000.C. 1,500,000.12. During 2009, Accent Toys Pic ,which began bus in ess in October of that year, purchased 10,000 units of a toy at a cost of 10 per unit in October The toy sold well in October In anticipation of heavy Dec

46、ember sales, Accent purchased 5,000 additional units in November at a cost of 11 per unit During 2009, Accent sold 12,000 units at a price of 15 per unit Under the first in, first out (FIFO) method, what is Accent s cost of goods sold for 2009A. 120,000.B. 122,000.C. 124,000.13. Using the same infor

47、mation as in Question 12, what would Accent s cost of goods sold be under the weighted average cost methodA. 120,000.B. 122,000.C. 124,000.14. Which inventory method is least likely to be used under IFRSA. First in, first out (FIFO)B. Last in, first out (LIF0).C Weighted average15. At the beginning

48、of 2009, Glass Manufacturing purchased a new machine for its assembly line at a cost of $600,000. The machine has an estimated useful life of 10 years and estimated residual value of $50,000. Under the straight-line method, how much depreciation would Glass take in 2010 for financial reporting purpo

49、sesA. $55,000.B. $60,000.C. $65,000.16. Using the same information as in Question 15, how much depreciation would Glass take in 2009 for financial reporting purposes under the double-declining balance methodA. $60,000.B. $110,000.C. $120,000.17. Which combination of depreciation methods and useful l

50、ives is most conservative in the year a depreciable asset is acquiredA. Straight-line depreciation with a short useful lifeB. Declining balance depreciation with a long useful lifeC Declining balance depreciation with a short useful life18. 5der IFRS, a loss from the destruction of property in a fir

51、e would most likely be classified as：A. continuing operationsB discontinued operationsC other comprehensive income19. For 2009, Flamingo Products had net income of $1,000,000. At 1 January 2009, there were 1,000,000 shares outstanding. On 1 July 2009, the company issued 100,000 new shares for $20 pe

52、r share. The company paid $200,000 in dividends to common shareholders What is Flamingo* s basic earnings per share for 2009A. $.B. $.C. $.20. Cell Services Inc. (CSI) had 1,000,000 average shares outstanding during all of 2009. During 2009, CSI also had 10,000 options outstanding with exercise pric

53、es of $10 each The average stock price of CSI during 2009 was $15 For purposes of computing diluted earnings per share, how many shares would be used in the denominatorA. 1,003,333.B. 1,006,667.C. 1,010,000.READING 251. Resources controlled by a company as a result of past events are：A. equityB. ass

54、etsC. liabilities.2. Equity equals：A. Assets 一 LiabilitiesB. Liabilities 一 AssetsC Assets + Liabilities3. Distinguishing between current and non-current items on the balance sheet and presenting a subtotal for current assets and liabilities is referred to as：A. a classified balance sheetB. an unclas

55、sified balance sheetC. a liquidity-based balanee sheet4. All of the following are current assets except：A. cashB. goodwi 11.C inventories5. Debt due within one year is considered：A. currentB. preferredC. convertible6. Money received from customers for products to be delivered in the future is record

56、ed as：A. revenue and an assetB. an asset and a liability.C. revenue and a liability7 The carrying value of inventories reflects：A. their historical costB. their current valueC the lower of historical cost or net realizable value8. When a company pays its rent in advanee, its balanee sheet will reflect a reduction in：A. assets and liabilitiesB. assets and shareholders equityC one category of assets and an increase in another9. Accrued expenses (accrued liabilities) are：A. expenses that have been paidB. created when another liability is reducedC e