题目内容

White Corp.抯 financial statements for the year ended December 31, 2001 included the
following:
Income Statement
Sales $8,000,000
Cost of Goods Sold (3,800,000)
Gross Profit 4,200,000
Wages (1,000,000)
Depreciation (600,000)
Interest (500,000)
Taxes (600,000)
Net Income $1,500,000
Selected Balance Sheet Accounts
Dec. 31, 2000 Dec. 31, 2001
Accounts Receivable $1,200,000 $1,500,000
Inventory 800,000 1,000,000
Accounts Payable 600,000 400,000
Equipment 5,300,000 5,500,000
White prepares its Statement of Cash Flow using the direct method.
The Cash Flow from Operations (CFO) section of the statement will show Cash Collections of:

A. $7,700,000.
B. $7,100,000.
C. $6,900,000.
D. $6,700,000.

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Which of the following statements are TRUE?

A. Reported earnings under the completed-contract method are more volatile than under the percent-of-completion method.
B. Reported earnings under the completed-contract method are more volatile than under the percent-of-completion method; Analysis of cash flow from operations is more important when using the completed-contract method than when using the percent-of-completion method.
C. Reported earnings under the completed-contract method are more volatile than under the percent-of-completion method; When cash receipts are greater than revenues earned the completed-contract method will give lower net income, retained earnings, liabilities, and current assets than the percent-of-completion method.
D. Analysis of cash flow from operations is more important when using the completed-contract method than when using the percent-of-completion method; When cash receipts are greater than revenues earned the completed-contract method will give lower net income, retained earnings, liabilities, and current assets than the percent-of-completion method.

According to the Global Investment Performance Standards (GIPS), which of the following statements is most likely accurate?

A. Compliance with GIPS is the best way to adhere to Standard I(C)-Misrepresentation and Standard III (D)-Performance Presentation.
B. Compliance with GIPS is the only way to adhere to Standard I(C)-Misrepresentation and Standard III (D)-Performance Presentation.
Compliance with GIPS is claimed by the regulatory agency.

Washington, Inc.抯 stock transactions during the year 2001 were as follows:
January 1 720,000 shares issued and outstanding
May 1 2 for 1 stock split occurred
October 1 Acquisition of Block Corp. in exchange for 240,000 shares in a
transaction accounted for by the pooling of interests method.
What was Washington 抯 weighted average number of shares outstanding during 2001, for
earnings per share (EPS) computation purposes?

A. 1,680,000.
B. 1,500,000.
C. 1,740,000.
D. 1,666,667.

Michael, CFA, works as an Editor-In-Chief, at the ANZ bank’s marketing department. The Financial Times Magazine, which is published according to its business function, always recommends securities to the market. Once the magazine is published, it always guides those recommended stocks to a fairly good performance. According to the recommendation, Michael often trades stocks before the magazine is published. Meanwhile, ANZ bank’s compliance department requires all portfolio managers or analysts to obtain prior approval for the transaction. Which of the following CFA Institute Standards of Professional Conduct does Michael most likely violate?

A. Independence and Objectivity.
B. Material Nonpublic Information.
C. Disclosure of Conflicts.

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