单选题Which of the following statements about cash flow is least likely correct? Under U.S. GAAP, cash flow from: A. operations includes cash operating expenses and changes in working capital accounts. B. financing includes the proceeds of debt issued and from the sale of the company' s common stock. C. investing includes interest income from investment in debt securities.
单选题All of the following are titles of one of the eight sections of the Global Investment Performance Standards (GIPS) EXCEPT :
单选题Ralph & Sons, Inc., uses the straight-line method of depreciation for its long-lived assets. After a recent meeting with the independent accountants where industry depreciation practices were discussed, Ralph decided to switch to the double-declining balance method. In the year in which the switch occurs, Ralph should report this change as: A. a change in accounting principle and report its effect on prior period results as a non-recurring item, net of tax. B. an accounting error and directly adjust retained earnings. C. a change in accounting principle and report its effect on prior earnings as part of operating earnings.
单选题A firm operates in an industry characterized by monopolistic competition. When the price of the firm's one product increases from $40 to $60, the quantity demanded for the firm's another product decreases from 90 to 50. The cross elasticity of demand is cLosest to: A. -0.70 B. -1.43 C. -2.00
单选题With regard to stock market indexes, it is least likely that:
A. the use of a geometric mean produces a downward bias on an equal-weighted
index compared to the use of an arithmetic mean.
B. the use of price weighting versus market value weighting produces a
downward bias on the index.
C. a value-weighted index must be adjusted for stock splits but not for
dividends.
单选题In 2005, Carpet Company decides to change from the straight-line method of depreciation to the sum of the year' s digits method. The following information is available :
Pre-2005
2005
Straight Line Depreciation
$ 1600000
$ 400000
Sum of the Years Digits
$ 2300000
$ 500000 On its 2005 financial statements, Carpet will report: A. $ 400000 depreciation expense in the 2005 income statement and $ 800000 separately as a change in accounting principle net of taxes. B. $ 500000 depreciation expense in the 2005 income statement and $ 700000 separately as a change in accounting principle net of taxes. C. $1200000 depreciation expense in the 2005 income statement and include a footnote of explanation including the tax effect.
单选题An analyst is comparing a firm to its competitors. The firm has a deferred tax liability and is expected to continue to grow in the foreseeable future. How should the liability be treated for analysis purposes? A. It should be treated as equity at its full value. B. It should be treated as a liability at its full value. C. The present value should be treated as a liability with the remainder being treated as equity.
单选题The best characterization of the strong-form of efficient market hypothesis (EMH) with respect to the information set is that it encompasses:
单选题For two American options that differ only in time to expiration,
strongest statement we can make is that :
A. the longer-term option must be worth more than the shorter-term
option.
B. the longer-term option must be worth less than the shorter-term
option.
C. the longer-term option must be worth at least as much as the
shorter-term option.
单选题Thedataforfourstocksinanindexareasfollows:StockSharesOutstanding%SharesinMarketFloatBeginningofPeriodPrice($)EndofPeriod($)DividendsPerShare($)A5,0009040451,00B2,00010068600,50C6,0007060701,50D4,0004020240,80Assumingthebeginningvalueofthefloat-adjustedmarket-capitalization-weightedequityindexis100,theendingvalueisclosestto:
单选题Which of the following statements about put and call options is FALSE?
单选题Eileen Fisher, CFA has been a supervisory analyst at SL Advisors for the past ten years
单选题When potential real GDP is less than actual real GDP, the economy is most likely experiencing:
单选题Which of the following statements regarding mortgage-backed securities (MBS) and collateralized mortgage obligations (CMOs) is most likely correct? A. MBS are created from CMOs. B. Creating CMOs does not reduce the overall prepayment risk of a mortgage pass through security. C. The prepayment option of an MBS benefits the security holder.
单选题An investor buying bonds on margin:
单选题The Laffer curve indicates that:
A. reducing inflation will likely increase unemployment.
B. higher tax rates can reduce tax revenues.
C. tax revenues are a positive function of GDP.
单选题Assume a company"s ROE is 14% and the required return on equity is 13%. All else remaining equal, if there is a decrease in a firm"s retention rate, a stock"s value as estimated by the constant growth dividend discount model (DDM) will most likely:
单选题AU.S.bankentersintoaplainvanillacurrencyswapwithanotionalprincipalofUS$100m(￡67m).Ateachsettlementdate,theU.S.bankpaysafixedrateof8percentonthepoundsreceived,andanEnglishbankpaysavariablerateequaltoLondoninterbankofferedrate(LIBOR)ontheU.S.dollarsreceived.Giventhefollowinginformation,whatpaymentismadetowhomattheendofyear2?TheU.S.bankpays:A.US$5.5mandtheEnglishbankpays￡5.36m.B.US$6mandtheEnglishbankpays￡5.36m.C.￡5.36mandtheEnglishbankpaysUS$5.5m.
单选题Thediagramtotherightshowsthedomesticdemandandsupplycurvesforacountrythatimportsacommodity,wherePWisitsworldpriceandPTisitsdomesticpriceaftertheimpositionofatariff.Thereductioninthenetnationalwelfareofthiscountryasaresultofthetariffisbestdescribedbythearea(s):
单选题Challenges to implementing a discretionary fiscal stimulus in a timely manner are least likely to include the: A. government payments for unemployment benefits. B. need to convince lawmakers that action must be taken. C. inability of policymakers to forecast a recession precisely.