题目内容

While attending a local college, music major Anjolie Webster accepts a temporary position with a small manufacturing firm. Currently, the firm uses LIFO to account for inventory, but the owner is "just curious" about how the financial results would look if the company used FIFO. Before the owner leaves for her voice lesson, she hands Webster a photocopy of the inventory data for the current period (summarized below). Beginning inventory of 1000 units at $ 30 cost. Ending inventory of 800 units. Sales of 1100 units. Three inventory purchases (listed from earliest purchase to latest purchase): 400 units at $ 27 each, 300 units at $ 25 each, and an unreadable number of units at $ 22 each. (Unfortunately, when the owner copied the original document, she left a yellow sticky note covering some of the inventory information. ) Current assets (less inventory) of $75000. Current liabilities of $ 65000. Using the information provided, determine which of the following statements is least accurate All else equal, compared to LIFO, using FIFO would result in: （）

A. cost of goods sold of $ 32700.
B. a lower ending inventory balance.
C. a current ratio of approximately 1.60.

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Which of the following statements about leases is least accurate（）

A. If a lease is a capital lease and the lessor is not a dealer in the leased asset, the lease is a direct financing lease.
B. If the lease is a capital lease and the lessor is a dealer or seller of the leased equipment, the lease is a sales-type lease on the books of the lessor.
C. In a direct financing lease, the gross profit is recognized at the lease inception, while in a sales-type lease it is not.

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When analyzing a firm’s reconciliation between its effective tax rate and the statutory tax rate, which of the following is NOT a potential cause for the difference between the effective rate and the statutory rate （）

A. Deferred taxes provided on the reinvested earnings of unconsolidated domestic affiliates.
B. Tax credits.
C. Use of accelerated depreciation for tax purposes and straight-line depreciation for reporting purposes.

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Jerry Clark, CFA, has been hired to review the financial statements of a company by a client who values his knowledge and expertise. The client is considering investing in the company and is concerned that the company is being overly aggressive in its accounting practices. Which of the following company activities would be least likely to increase current period net income（）

A. Due to a recent jump in prices, the company has decided to change its inventory valuation method from FIFO to LIFO.
B. The company capitalizes its advertising costs and amortizes the costs over three years. C. The company routinely books the full value of any new contracts it obtains as revenue when at least 25% of the payment has been received.

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Debt covenants are restrictions imposed by bondholders on the issuer in order to protect the bondholders’ position. Which of the following is least likely to be an area in which restrictions are imposed by debt covenants（）

A. Issuance of new debt.
B. Sinking fund agreements.
C. Bond repurchases at a premium to par.

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A. cost of goods sold of $ 32700. B. a lower ending inventory balance. C. a current ratio of approximately 1.60.

Which of the following statements about leases is least accurate（）

When analyzing a firm’s reconciliation between its effective tax rate and the statutory tax rate, which of the following is NOT a potential cause for the difference between the effective rate and the statutory rate （）

Debt covenants are restrictions imposed by bondholders on the issuer in order to protect the bondholders’ position. Which of the following is least likely to be an area in which restrictions are imposed by debt covenants（）

A. cost of goods sold of $ 32700.
B. a lower ending inventory balance.
C. a current ratio of approximately 1.60.