來自臺灣的習(xí)題120道

1.TofulfilltheirobligationregardinginformingtheiremployeroftheirobligationtocomplywiththeCodeandStandards,members:a.Mustinformtheirimmediatesupervisor,inwriting,oftheirobligationtocomplywiththeCodeandStandards.b.NeednotinformtheiremployeroftheirobligationtocomplywiththeCodeandStandardsiftheemployerhaspubliclyadoptedAIMR’sCodeandStandardsaspartofitsfirm’spolicies.c.CannotifytheiremployeroftheirobligationtocomplywiththeCodeandStandardsviae-mail.d.Alloftheabove.2.Anderb,aportfoliomanagerforXYZInvestmentManagementCompany－aregisteredinvestmentorganizationthatadvisesinvestmentcompaniesandprivateaccounts－waspromotedtothatpositionthreeyearsago.Bates,hersupervisor,isresponsibleforreviewingAnderb’sportfolioaccounttransactions,andherrequiredmonthlyreportsofpersonalstocktransactions.AnderbhasbeenusingJonelli’s,abroker,almostexclusivelyforportfolioaccountbrokeragetransactions.ForsecuritiesinwhichJonelli’sfirmmakesamarket,JonellihasbeengivingAmderblowerpricesforpersonalpurchasesandhigherpricesforpersonalsalesthanJonelligivesAnderb’sportfolioaccountsandotherinvestors.AnderbhasbeenfilingmonthlyreportswithBatesonlyinthosemonthsinwhichshehasnopersonaltransactions,whichisabouteveryfourthmonth.Whichofthefollowingapplies/apply?I. AnderbviolatedtheCodeandStandardsinthatshefailedtodisclosetoheremployerherpersonaltransactions.II. AnderbviolatedtheCodeandStandardsbybreachingherfiduciarydutytoherclients.III.BatesviolatedtheCodeandStandardsbyfailingtoenforcereasonableproceduresforsupervisingandmonitoringAnderbinAnderb’stradingforherownaccount.a.Ionly.b.IandIIonly.c.IIandIIIonly.d.I,II,andIII.3.Saunders,amininganalystforHokassenInvestments,hascompletedhisanalysisofOkunDrilling&MiningforawealthyclientofHokassen.Hehasconcludedthat,basedoncoresamplesandgeologicalsurveysoflandownedorleasedbyOkun,thecompanyhasinexcessof1millionofgoldavailabletomine.Saundersdraftsaresearchreportstatingthefollowing:“Basedonthefactthatthecompanyhas1millionouncesofgoldtobemined,IrecommendpurchasingOkunstockforyourportfolio.”IfSaunderspresentshisreporttothewealthyclient,hewillhave:a.ViolatedtheAIMRStandardsofProfessionalConductbecausehedidnotdistinguishbetweenfactandopinion.b.ViolatedtheAIMRStandardsofProfessionalConductbecausehedidnotindicatethebasiccharacteristicsoftheinvestment.c.ViolatedtheAIMRStandardsofProfessionalConductbecausehemadeconclusionsbasedonlyonhisownresearch.d.CompliedwiththeAIMRStandardsofProfessionalConduct.4.Allthefollowingstatementsaboutthepaymentofbrokeragecommissions(softdollars)aretrueEXCEPT:a.brokeragecommissionsshouldbedirectedinthebestinterestsoftheclient.b.brokeragecommissionsmaybedirectedtopayforsecuritiesresearchusedinmanagingtheclient’sportfolio.c.brokeragecommissionspaidshouldbecommensuratewiththevalueofthebrokerageandresearchservicesreceived.d.brokeragecommissionsmaybedirectedtopayfortheinvestmentmanager’soperatingexpenses.5.JohnVickery,atrusteeforthepensionplanofRichardsonIndustries,hasjustreceivedacommissionschedulefromXYZBrokerage,afirmwithwhichheisnotnowtrading.ThefeescheduleislowerthanthescheduleofABCBrokerage,whichisthefirmVickerynowusesformosttransactions.ABCalsoprovidesresearchdataandperformancemeasurementforthepensionplan,servicesthatXYZcannothandle.Vickeryisconcernedthathemaybeviolatinghisfiduciarydutyofloyaltybynotusingthelowestcostbrokeragefirm.BasedonAIMRStandardsofProfessionalConduct,whichofthefollowingstatementsistrue?a.VickerywillviolatehisfiduciarydutyunlessheimmediatelybeginstradingthroughXYZ.b.VickerywillnotviolatehisfiduciarydutyunlesshepersonallyprofitsfromhisrelationshipwithABC.c.The“safeharbor”conceptallowsfiduciariestopayhighercommissionseventhoughtheservicesarenotfullycommensuratewiththecost.d.VickerycancontinuetotradethroughABCifhedetermines,ingoodfaith,thatthevalueoftheservicesiscommensuratewiththecost.6.TonyClinton,aportfoliomanagerwithNorthwestBank,hasjustbeengiveninvestmentauthorityforanewly-acquiredpensionaccount,Clientobjectiveshavenotyetbeenestablished.OnthedayClintonwasgiventheaccount,$2millionoftheaccount’sbondholdings,representing4percentoftheportfolio,matured.BasedonAIMRStandardsofProfessionalConduct,whichofthefollowingisClinton’sbestcourseofactiononthatday?a.Contacttheclient’sformerinvestmentadvisortofindouttheappropriateinvestmentactionbasedonpreviously-usedguidelines.b.Investtheproceedsinlinewiththebank’scurrentassetallocationstrategy.c.InvesttheproceedsincashequivalentsuntilClintoncanarrangeameetingwiththeclienttoestablishfundobjectives.d.Makenodecisionuntiltheclient’sobjectivesareestablished.7.JimOrlando,CFA,isaresearchanalystwithabrokeragefirm.HedecidedtochangehisrecommendationonthecommonstockofAlphaCompanyfroma“buy”toa“sell.”Hefaxedthischangeininvestmentadvicetoallhiscurrentcustomers.Thenextday,anewcustomercalledtobuy500sharesofAlphaCompany.AccordingtoAIMRStandardsofProfessionalConduct,Orlando:a.mayaccepttheorderbecausehehascompliedwiththestandardonfairdealingwithcustomers.b.shouldadvisethecustomerofthechangeinrecommendationbeforeacceptingtheorder.c.shoulddelayexecutingtheorderuntilfivedayshaveelapsedafterthecommunicationofthechangeinrecommendation.d.mayaccepttheorderwhenthecustomerspecifiesinwritingthathewasnotifiedofthechangeintherecommendation.8.WhichofthefollowingstatementsisarecommendationoftheStandardsofPracticeHandbookwithregardstopersonalinvesting?a.RestrictionsonparticipationinanIPOofequityorequity-relatedsecurities.b.Preclearanceofalltrades.c.Disclosureofallholdingsinwhichtheemployeehasabeneficialinterest.d.Alloftheabove.9.DonSmith,aCFAcandidateemployedbyHunterInvestmentCounselors,Inc.,providesinvestmentadvicetotheboardoftrusteesofaprivateuniversityendowmentfund.ThetrusteeshavegivenSmiththefund’sfinancialinformation,includingplannedexpenditures.SmithreceivedaphonecallonFridayafternoonfromMarkMurdock,aprominentalumnus,requestingthatSmithfaxtohimcomprehensivefinancialinformationaboutthefund.AccordingtoMurdock,hehasapotentialcontributorbutneedstheinformationtodaytoclosethedealandcannotcontactanyofthetrustees.BasedonAIMRStandardsofProfessionalConduct,Smithmay:a.sendMurdocktheinformationbecausedisclosurewouldbenefittheclient.b.notsendMurdocktheinformationbecauseSmithmustpreserveconfidentiality.c.sendMurdocktheinformationprovidedSmithpromptlynotifiesthetrustees.d.sendMurdocktheinformationbecauseitisnotmaterialnonpublicinformation.10. JaneDoe,aCFAcandidate,isajuniorresearchanalystwithHoward&Sons,abrokerageandinvestmentbankingfirm.Howard’smergersandacquisitionsdepartment,whichhandlesmergersandacquisitions,hasrepresentedBritlandCompanyinallitsacquisitionsforthepast20years.TwoofHoward’sseniorofficersaredirectorsofvariousBritlandsubsidiaries.DoehasbeenaskedtowritearesearchreportonBritland.BasedonAIMRStandardsofProfessionalConduct,thatisDoe’sbestcourseofaction?a.Doemaywritethereportbutmustrefrainfromexpressinganyopinionsbecauseofthespecialrelationshipsbetweenthetwocompanies.b.Doemaywritethereportprovidedtheofficersagreenottoalterit.c.DoemaywritethereportifshedisclosesHoward&Son’sspecialrelationshipwithBritlandinthereport.d.DoeshouldnotwritethereportbecausethetwoHoward&Sonsofficersare“constructiveinsiders.”11. BobRyan,CFA,isananalystwithalargeinsurancecompany.HispersonalportfolioincludesasignificantinvestmentinthecommonstockofQRSCompany,whichhisfirmdoesnotnowfollow.Thedirectoroftheinsurancecompany’sresearchdepartmentasksRyantoanalyzeQRSandwriteareportaboutitsinvestmentpotential.BasedonAIMRStandardsofProfessionalConduct,Ryanshould:a.declinetowritethereportwithoutspecificapprovalofhissupervisor.b.sellhissharesofQRSbeforecompletingthereport.c.disclosetheownershipofthestocktohisemployerandinthereport.d.placehissharesofQRSinatrust.12. Stone,afinancialanalyst,followstheAmityPavingCompanyforhisemployer.WhichoneofthefollowingscenariosisStoneleastlikelytohavetodisclosetohisemployer:a.Stone’sownershipofAmitysecurities.b.Stone’sparticipationonAmity’sboardofdirectors.c.Stone’spersonalrelationshipwiththeCEOofAmity.d.ThefactthatStone’ssonworkedatAmityasalaborerduringthesummerwhileinschool.13. Gaines,afinancialanalystforSkinnerInvestmentCounseling,istoldbytheinvestorrelationsrepresentativeforFirebirdAvionics,amajoraircraftmanufacturer,thatthefirmisinthefinalstagesofbuildinganewfuelefficientjetengine.ThisinformationisdivulgedbyFirebirdatthemostrecentquarterlyconferencecallforanalysts.Inaresearchreport,Gainesusesthisinformationalongwithotherinformationheobtainedformthecompanydistributedtothepublicinaresearchreportthatincludesa“buy”recommendationforFirebirdstock.Whichofthefollowingstatementsis/aretrue:a.GainesviolatedAIMRStandardsofProfessionalConductbecauseheusedmaterialinsideinformation.b.GainesviolatedAIMRStandardsofProfessionalConductbecausehehasamaterialmisrepresentationinhisreport.c.GainesviolatedAIMRStandardsofProfessionalConductbecausehefailedtoseparateopinionfromfact.d.Gaines’actionsdidnotviolateAIMRStandardsofProfessionalConduct.14. Theterm“material”inthephrase“materialnonpublicinformation”referstoinformationthatislikelytoaffectsignificantlythemarketpriceoftheissuingcompany’ssecuritiesorthat:a.isderivesbythefinancialanalystfromdirectcommunicationwithanissuingcompany’smanagement.b.isacquiredbythefinancialanalystfromaspecialorconfidentialrelationshipwiththeissuingcompany.c.islikelytoprecludethefinancialanalystortheanalyst’sfirmfromrenderingunbiasedorobjectiveadvice.d.islikelytobeconsideredimportantbyreasonableinvestorsindeterminingwhethertotradeaparticularsecurity.15. TheEmployeeRetirementIncomeSecurityActof1974imposesanddefinesfiduciarydutiesandincludesseveralresponsibilitiesowedtoaclient.Whichofthefollowingisnotoneofthoseresponsibilities?a.Providefulldisclosureofexpectedinvestmentperformanceonrequest.b.Carryoutinvestmentactionsforthesolebenefitoftheclients.c.Exerciseastandardofreasonablecare.d.Considerinvestmentswithinthecontextofadiversifiedportfolio.16. SanctionsthatAIMRmayimposeonitsmembersinclude:I. revocationofthemember’sregistrationasaninvestmentadvisor.II. privatecensure.III.monetaryfind.IV.publiccensure.a.IandIIIonly.b.IIandIVonly.c.II,III,andIVonly.d.I,II,III,andIV.17. ACFAchartermaybesuspendedwithoutadisciplinaryhearingifthepersonhasbeen:a.UnwillingtocooperatewithanAIMRinvestigationintoallegedprofessionalmisconductonhispart.b.Convictedofafelony.c.Barredindefinitelyfromregistrationundersecuritieslawsbyagovernmentalauthority.d.Alloftheabove.18. WhichofthefollowingstatementsabouttherulesoftheU.S.SecuritiesandExchangeCommission(SEC)istrue?a.TheSECprovidesinsurancetosmallinvestorsagainstsecuritiesfraud.b.Anissuerofsecuritiesmustprovideinvestorswithadequateandaccuratedisclosureofmaterialfacts.c.Amewissueofcommonstockmaynotberegisteredforsaleunlessitmeetsfinancialratiostandards,whichservetoprotectthesmallinvestor.d.TheSECsetsmarginrequirementsforbuyingsecurities.19. Whatisthepresentvalueofthefollowingstreamofyear-endpaymentsdiscountedat12percentperyear?Year1Year2Year3Year4$-100$-200$-100$+450a.$-53.37.b.$-44.65.c.$-33.92.d.$-13.06.20. Anindividualdeposits$1,500todayand$1,500oneyearfromtodayintoaninterest-earningaccount.Thedepositsearn12percentcompoundedannually.Thetotalamountintheaccounttwoyearsfromtodayisclosestto:a.$3,180.b.$3,360.c.$3,382.d.$3,562.21. Aninvestmentof$231willincreaseinvalueto$268inthreeyears.Theannualcompoundgrowthrateisclosestto:a.3.0%.b.4.0%.c.5.0%.d.6.0%.22. Anindividualisbuyinga$100,000housewitha30-yearmortgagerequiringpaymentstobemadeattheendofeachyear.Theinterestrateis10percentandthefirstpaymentisdueonerearfromtoday.Theannualpaymentisclosestto:a.$10,608.b.$10,672.c.$12,343.d.$13,303.23. Anindividualiscreatingacharitabletrusttoprovidesixannualpaymentsof$20,000each,beginningtoday.Howmuchmoneymusttheindividualsetasidenowat10percentinterestcompoundedannuallytomeettherequireddisbursements?a.$75,815.b.$78,815.c.$83,397.d.$95,816.24. Atan8percentrateofreturn,howmuchmustaninvestorhaveinherinvestmentaccountonher65thbirthdayinorderthatshecanwithdraw$30,000onthatbirthdayandoneachofthenext19birthdays?a.$264,540.b.$288,120.c.$294,540.d.$318,108.25. Toleasesomespecializedequipment,LuckEnterpriseshasacquiredacapitalleasethatiscarriedonitsbooksatapresentvalueof$50,000(discountedat16percent)andanannualpaymentof$10,000.attheendofthelease,LuckEnterpriseswilltakepossessionoftheequipment,whichwillhaveavalueof$7,000atthattime.Whatistheamountofinterestexpensefromtheleaseinthefirstandsecondyears?FirstYearSecondYeara.$6,880$6,381b.$8,000$6,720c.$8,000$7,680d.$10,000$10,000UsethefollowingexpectationsforStocksXandYtoanswerQuestions26through28.Roundtothenearestpercent.BearNormalBullMarketMarketMarketProbabilityStockX-20%18%50%StockY-15%20%10%26. WhatistheexpectedreturnforStockXandY?StockXStockYa. 18% 5%b. 18% 12%c. 20% 11%d. 20% 10%27. ThestandarddeviationofreturnsonStocksXandYisclosestto:StockXStockYa. 15% 26%b. 20% 4%c. 24% 13%d. 28% 8%28. Aninvestorhasa$10,000portfolioconsistingof$9,000inStockXand$1,000inStockY.Whatistheinvestor’sexpectedreturnontheportfolio?a.18%.b.19%.c.20%.d.23%.29. ThestandarddeviationofStockAis0.20.ThestandarddeviationofStockBis0.12.ThecovariancebetweenStockAandBis0.0096.ThecorrelationbetweenStockAandStockBis:a.0.20.b.0.24.c.0.36.d.0.40.30. ThecorrelationbetweentheCharlottesvilleInternationalFundandtheEASEIndexis1.0.TheexpectedreturnontheEASEIndexis11percent;theexpectedreturnontheCharlottesvilleInternationalFundis9percent;andtherisk-freereturninEASEcountriesis3percent.Basedonthisinformation,theimpliedbetaoftheCharlottesvilleInternationalFundis:a.negative.b.0.75.c.0.82.d.1.00.UsethefollowingdatainansweringQuestions32through34. TheannualrateofreturnforJSI’scommonstockhasbeen: Return32. WhatisthearithmeticmeanreturnforJSI’scommonstockoverthefouryears?a.8.62%.b.9.25%.c.14.00%.d.14.25%.33. WhatisthegeometricmeanrateofreturnforJSI’scommonstockoverthefouryears?a.8.62%.b.9.25%.c.14.21%.d.12.73%34. WhatarethemedianandmodeoftherateofreturndataforJSI’scommonstock?MedianModea. 9.25%14.50%b. 14.00%undefinedc. 14.00%14.00%d.14.50%14.00%35. IfStockX’sexpectedreturnis30percentanditsexpectedvarianceis25,StockX’sexpectedcoefficientofvariationis:a.0.167.b.0.833.c.1.200.d.6.000.36.Whichofthefollowingstatementsaboutanormaldistributionaretrue?Anormaldistributionis:AcontinuousprobabilitydistributionAsymmetricalorbell-shapeddistributionDescribedbyacurvethattheoreticallyextendsfromnegativeinfinitytopositiveinfinityIandIIonlyIandIIIonlyIIandIIIonlyI,IIandIII37. Inmacroeconomics,thecrowding-outeffectrefersto:a.theimpactofgovernmentdeficitspendingoninflation.b.increasingpopulationpressuresandassociatedmovementstowardzeropopulationgrowth.c.asituationinwhichtheunemploymentrateisbelowitsnaturalrate.d.theimpactofgovernmentborrowingoninterestratesandprivateinvestment.38. Whichofthefollowingstatementsabouttheeffectsofbudgetdeficitsontheinflationrateistrue?Empiricalevidenceshows:a.thatbudgetdeficitsstimulateaggregatedemandandleadtoanaccelerationintheinflationrate.b.adirectrelationshipbetweentheinflationrateandthesizeofthebudgetdeficitasashareofgrossdomesticproduct.c.aninverserelationshipbetweentheinflationrateandthesizeofthebudgetdeficitasashareofgrossdomesticproduct.d.nosignificantrelationshipbetweenbudgetdeficitsandtheinflationrate.39. Thepublicdecidestodecreaseitsholdingsofcurrencyandtoincreaseitsholdingsofcheckingaccountfundsbyanequalamount.IftheFederalReservedoesnottakeanyoffsettingactions,howwillthemoneysupplybeaffected?a.Themoneysupplywilldecrease.b.Theactiondoesnotdirectlyaffectthemoneysupply,buttheactionwillreducetheexcessreservesofbanksandtendtoreducethemoneysupplyindirectly.c.Theactiondoesnotdirectlyaffectthemoneysupply,buttheactionwillincreasetheexcessreservesofbanksandtendtoincreasethemoneysupplybecausebanksmayexpandtheirloans.d.Themoneysupplywillnotbeaffectedbecausetheincreaseincheckingaccountholdingswilloffsetthedecreaseincurrencyholdings.40.Usethetablebelowtochoosethecorrectanswer.ObservedRatesofPeriodInflation12%243648 Accordingtotheadaptiveexpectationshypothesis,atthebeginningofperiod4,decision-makerswouldexpecttherateofinflationtobe:a.4%.b.5%.c.6%.d.8%.41. Whenthepriceelasticityofdemandisinelastic:a.priceandtotalrevenuemoveinthesamedirection.b.priceandtotalrevenuemoveintheoppositedirection.c.totalrevenueincreaseswhetherpricegoesupordown.d.totalrevenueremainsconstantwhetherpricemovesupordown.42. A10percentincreaseinincomecausedagroupofconsumerstoincreasetheirpurchasesoftelevisionsetsfrom100to110.whatwouldbethegroup’sincomeelasticityofdemandfortelevisionsets?a.0.10.b.0.83.c.1.00.d.2.00.43. HowwouldanunanticipatedshifttoamoreexpansionarymonetarypolicyintheUnitedStatestypicallyaffectthedemandforforeigncurrenciesintheUnitedStatesandthevalueoftheU.S.dollar?DemandforForeignExchangeForeignCurrenciesValueoftheDollara.Increase Nochangeb.Increase Decreasec.Nochange Decreased.Decrease Increase44. Ifaprofit-maximizingfirmfindsthatitsmarginalrevenueexceedsitsmarginalcost,thefirmshould:a.increaseoutputifthefirmisapricetaker,butnotnecessarilyifthefirmisapricesearcher.b.decreaseoutput,nomatterwhetherthefirmisapricetakerorapricesearcher.c.increaseoutputifthefirmisapricesearcher,butnotnecessarilyifthefirmisapricetaker.d.increaseoutput,nomatterwhetherthefirmisapricetakerorapricesearcher.45. Thelawofcomparativeadvantagesuggeststhat:I. specializationandexchangewillpermittradingpartnerstomaximizetheirjointoutput.II. anationcangainfromtradeevenwhenithasanabsolutedisadvantageintheproductionofallgoods.III.anationcannotgainfromtradewhenitstradingpartnersarelow-wagecountries.a.Ionly.b.IIonly.c.IIandIIIonly.d.IandIIonly.46. Thefollowingchartillustratesthedomesticpricesofthreeitems(shoes,watches,andelectricmotors)ofsimilarqualityintheUnitedStatesandBritain.UnitedStatesBritainItems(dollars)(pounds)Shoes 2080Watches 40180Electricmotors 80600 If$exchangesforfiveBritishpoundsandtransportationcostsarezero,Britainwillimport:a.shoesandwatchesandtheUnitedStateswillimportelectricmotors.b.importshoesandtheUnitedStateswillimportwatchesandelectricmotors.c.allthreegoodsfromtheUnitedStates.d.electricmotorsandtheUnitedStateswillimportshoesandwatches.47. IftheexchangeratevalueoftheBritishpoundgoesfromUS$1.80toUS$1.60,then:a.thepoundhasappreciated,andtheBritishwillfindU.S.goodscheaper.b.thepoundhasappreciated,andtheBritishwillfindU.S.goodsmoreexpensive.c.thepoundhasdepreciated,andtheBritishwillfindU.S.goodsmoreexpensive.d. thepoundhasdepreciated,andtheBritishwillfindU.S.goodscheaper.48. Underasystemoffixedexchangerates,anationexperiencinganexcessofimportsoverexportscantrytoremedythissituationby:a.adoptingtariffsandquotas.b.reducingitsincomefrominvestmentsabroad.c.applyinganexpansionarymacroeconomicpolicytodrivepricesupandinterestratesdown.d.buildingupitsreservesofforeigncurrenciesandreservebalanceswiththeInternationalMonetaryFund49. Underasystemoffixedexchangerates,anationcantrytoremedyitsbalance-of-paymentsdeficitby:a.applyingexpansionarymacroeconomicpolicytodrivepricesupandinterestratesdown.b.applyingrestrictivemacroeconomicpolicytokeeppricesdownandinterestratesup.c.reducingitsincomefrominvestmentsabroad.d.buildingupitsreservesofforeigncurrenciesandreservebalanceswiththeInternationalMonetaryFund.50. AJapaneseautomobilemanufacturerbuildsanautomobileplantintheUnitedStates.Intheforeignexchangemarket,thisactioncreates:a.ademandfordollarsandasupplyofyen.b.ademandforbothdollarsandyen.c.asupplyofdollarsandademandforyen.d.asupplyofbothdollarsandyen.51. Foramaterialitemtobeclassifiedasanextraordinaryitemontheincomestatement,theitemmustbe:bableandinfrequentinnature.d.unusualinnatureandinfrequentinoccurrence.52. Whenacompanydiscontinuesanddisposesofanoperation,theactionisconsidered:a.anextraordinaryitem.b.aprior-periodadjustment.c.acumulativeeffectofachangeinanaccountingprinciple.d.separatelyandisshownnetoftaxesontheincomestatement.53. Afirmhasacurrentratiogreaterthan1.0.ifthefirm’sendinginventoryisunderstatedby$3,000andbeginninginventorisoverstatedby$5,000,thefirm’snetincomeandthecurrentratiowillbe:NetIncomeCurrentRatioa.understatedby$2,000 lowerb.overstatedby$2,000 lowerc.understatedby$8,000 lowerd.understatedby$8,000 higher54. Ifnetpurchasesareoverstatedby$1,000andendinginventoryisoverstatedby$4,000,thennetincomewillbe.a.overstatedby$5,000.b.overstatedby$3,000.c.overstatedby$1,000.d.understatedby$4,000.55. Whichofthefollowingstatementsaboutinventoriesistrue?a.U.S.generallyacceptedaccountingprinciplesrequiretheuseofthelower-of-cost-of-market-valuationbasisforinventories.b.Last-in,firstout(LIFO)inventoryaccountingislesslikelytofacilitatemanagementofincomethanfirst-out(FIFO)accounting.c.Duringinflation,LIFOinventoryaccountingtendstooverstatethecurrentratio.d.FIFOinventorybalancesgenerallycontainoldandoutdatedcoststhathavelittleornorelationshiptocurrentcosts.56. Inperiodsofrisingpricesandstableorincreasinginventoryquantities,whichofthefollowingstatementsabouttheimpactofLIFOandFIFOonthefinancialstatementsaretrue?LIFO FIFOI. Costofgoodsold Higher LowerII. Netincome Lower HigherIII.Cashflows Lower HigherIV.Workingcapital Higher Lowera.IandIIonly.b.IandⅣonly.c.IIandIIIonly.d.IIIandⅣonly.57. UndertheLIFOmethodofinventoryvaluation,whenafirmsellsagreaterquantityofitsinventorythanitproducesoracquires,theresultis:I. Anunderstatementofthecostofgoodssold.II. lowerearningsduringaperiodofinflation.III.LowerearningsthanwouldhaveoccurredundertheFIFOmethodofinventoryvaluation.a.Ionly.b.IIonly.c.IIIonly.d.IIandIIIonly.58. AswitchfromtheFIFOmethodtotheLIFOmethodofinventoryaccounting:a.resultsinalowercurrentratioduringperiodsofrisingprices.b.resultsinamoremeaningfulinventoryvaluationduringperiodsofrisingprices.c.appliestoallinventoryclassifications.d.removestheopportunitytoaffectnetincomebyvaryingpurchasingpolicy.59. Whichofthefollowingisachangeinanaccountingprinciple?a.AchangefromFIFOtoLIFO.b.Recordingaprior-periodadjustment.c.Achangeintheestimatedservicelifeofmachinery.d.Recordingdepreciationexpenseforthefirsttimeonmachinerypurchasedfiveyearsago.60. Thetwoinventoryaccountingmethodsmostcommonlyusedbythemajornon-U.S.economiesare:a.FIFOandtheweighted-averagecostmethod.b.FIFOandLIFO.c.LIFOandtheweighted-averagecostmethod.d.LIFOandtheunits-ofproductionmethod.61. Thecapitalizationofinterestcostduringconstruction:a.increasesfuturenetincome.b.increasesfuturedepreciationexpense.c.decreasesnetincomeduringtheconstructionphase.d.decreasesfuturedepreciationexpense.62. Forcompaniesinanexpansionphase,capitalizationofinterestmayresultinagaininearningsoveranextendedperiodbecause:a.theamountofinterestamortizationwillnotcatchupwiththeamountofinterestcapitalizedinthecurrentperiod.b.theaverageprojectedexpendituresfortheperiodwillexceedspecificborrowings.c.thecostoffinancingprojectdebtwillexceedthecostofequityfinancing.d.earningswillbegreaterundercapitalizationthanundertheexpensemethodoverthel