单选题On January 1,2007, Omega Corporation paid $45000 to renew its property insurance for 3 years. What amount of insurance expense should Omega report for the year-ended December 31, 20×7 and what is the balance of Omega' s prepaid insurance account on December 31,20×8 ? Insurance expense Prepaid insurance ①A. $15000 $ 30000 ②B. $15000 $15000 ③C. $ 45000 $15000

单选题Which one of the following statements about correlation is FALSE? A. Positive covariance means that asset returns move together. B. If two assets have perfect negative correlation, it is impossible to reduce the portfolio's overall variance. C. The covariance is equal to the correlation coefficient times the standard deviation of one stock times the standard deviation of the other stock.

单选题ThedollardiscountonaUSTreasurybillwith91daysuntilmaturityis$2,100.Thefacevalueofthebillis$100,000.Thebankdiscountyieldofthebillisclosestto:

单选题Easy Rider Incorporated is a custom manufacturer of motorcycles. An analyst identifies the following issues in Easy Rider's financial statements: Issue 1 Customer advances have been steadily increasing over the past 36 months. Issue 2 Accounts payable turnover has been decreasing and there has been a shift from operating liabilities to financing liabilities. Considered separately, do these issues indicate a deteriorating liquidity position? Issue 1 Issue 2 ①A. No No ②B. Yes Yes ③C. No Yes A．① B．② C．③

单选题Which of the following statements best describes the effect of an increase in the tax rate on a firm's component costs of capital for debt, preferred stock, and common equity? Debt Preferred stock Common equity A. Decreases No effect No effect B. Decreases Increases Increases C. Increases Decreases Decreases

单选题The probabilities of earning a specified return from a portfolio are shown below:

单选题Which of the following statements is most accurate with respect to the measures of the money supply?

单选题The difference between income tax expense and taxes payable is a:

单选题Event X and event Y are independent events

单选题An analyst gathers the following information from a company's balance sheet (in millions): 31 December 2011 31 December 2010 Cash and marketable securities $66 $60 Receivables $22 $20 Current assets $132 $120 Total assets $1498 $1345 Current liabilities $242 $220 Total liabilities $1189 $987 Based on the information, the company's liquidity ratios at the end of 2011 have: A. decreased since the end of 2010. B. remained the same since the end of 2010. C. increased since the end of 2010.

单选题Which of the following statements is TRUE? A. When a rating agency downgrades a security, the bond's price usually falls. B. Technical default usually refers to the issuer's failure to make interest or principal payments as scheduled in the indenture. C. Default risk is important because if a bond issuer defaults, the bondholder likely loses his entire investment.

单选题Earlier this year, Slayton Corporation repurchased 5% of its total shares outstanding. At the time, the book value of Slayton shares exceeded their market value. The shares are expected to be reissued in the future when the market price of Slayton' s stock increases. Do Slayton' s repurchased shares continue to have voting rights and to pay cash dividends? Voting rights Cash dividends paid ①A. No Yes ②B. Yes No ③C. No No

单选题According to the crowding out effect, which of the following statements is least likely correct? The sale of government bonds used to finance excess government spending will: A. raise the interest rate. B. reduce private investment spending. C. increase the profitability of corporate investment projects.

单选题In a recent economic forum meeting, Jason Federmeyer of the Bank of Detroit, and Lawrence Lobovsky of the Bank of Tulsa, were discussing the demand for money and how it has changed over the years. Federmeyer made the following two statements to Lobovsky: Statement 1: Financial innovation has significantly affected the demand for money. The increased use of credit cards and debit cards, interest-bearing checking accounts, internet banking and even the large number of ATMs around the world have all helped to increase the demand for money above what it would have been if only the increase in real GDP were at work. Statement 2: Although the quantity of money demanded is largely determined by interest rates, the supply of money is determined by the central bank and is independent of interest rates. Are Statement 1 and Statement 2 as made by Federmeyer correct? Statement 1 Statement 2 ①A. Incorrect Incorrect ②B. Correct Incorrect ③C. Incorrect Correct A. ①B. ②C. ③

单选题Which of the following institutional investors are most likely to have a low tolerance for investment risk and relatively high liquidity needs?

单选题Which of the following statement about temporary and permanent differences is FALSE? A. Permanent differences are differences in taxable and pretax income that never reverse. B. Temporary differences are differences in taxable and pretax income that reverse in future years. C. Both temporary and permanent differences result in deferred tax consequences.

单选题According to the Standard of Practice Handbook, a supervisor establishing procedures to eliminate conflicts of interest relating to personal trading would least likely recommend requiring:

单选题All else equal, a decrease in the expected rate of inflation will most likely result in a decrease in: A. the real risk-free rate. B. the nominal risk-free rate. C. both real and nominal risk-free rates.

单选题An analyst does research about revenue recognition. Which of the following criteria is not required for the recognition of revenue from the sale of goods under U. S. Generally Accepted Accounting Principles (U. S. GAAP) ? A. There is evidence of an arrangement between buyer and seller. B. The seller is reasonable sure of collecting money. C. The amount of revenue can be measured reliably.

单选题Bond A has a yield of 8.75 percent. Bond B, the reference bond, has a yield of 7.45 percent. The risk-free rate of return is 3.50 percent. Assuming both bonds have the same maturity, the relative yield spread is closest to: