单选题In a recent meeting of the Board of Directors of Singh Semiconductors, the Board was discussing deferred taxes and the effective tax rate reconciliation disclosures. The Board wanted to learn more about this topic because low effective tax rates relative to the effective tax rates of comparable companies are a potential red flag. At the meeting the following two statements were made by Board members: Statement 1: When analyzing a firm' s effective tax rate reconciliation disclosures, analysts watch out for companies that report high income tax expense on their financial statements compared to taxes payable because such companies are more likely to be using aggressive accounting methods and have low-quality earnings. Statement 2: High effective tax rates may result when a firm has significant restructuring charges since restructuring charges do not generally have tax cash flow effects in the year they are recorded, but can have significant effects on future cash flows. Are Statements 1 and 2 as made by Singh Semiconductor's Board members correct or incorrect? Statement 1 Statement 2 ①A. Correct Correct ②B. Incorrect Correct ③C. Incorrect Incorrect

单选题The relevant 1-year,2-year, and 3-year spot rates are 3

单选题Compared to European put options on an asset with no cash flows, an American put option: A. will have a higher, lower bound on its price. B. will have a lower, lower bound on its price. C. will have the same lower bound on its price.

单选题Which of the following would be assessed first in a top-down valuation approach? A. Fiscal policy. B. Industry return on equity (ROE). C. Company return on equity (ROE).

单选题Karen, CFA, is the investment manager of a corporate pension plan. Under ERISA, she owes her fiduciary duty to: A. the plan sponsor. B. the firm's shareholders. C. the plan participants and beneficiaries.

单选题An analyst does research about sampling. Compared to estimates of parameters produced from simple random sampling, estimates of parameters produced from stratified random sampling most likely have: A. less precision. B. the same precision. C. greater precision.

单选题An investor buys a stock on margin

单选题Using the Four Cs of Credit Analysis framework, which of the following is the least likely factor to be considered under the category of capacity?

单选题Where in the financial statements should a firm recognize the unrealized gains and losses on cash flow hedging derivatives and the unrealized gains and losses on available-for-sale securities? Cash flow hedging derivatives Available-for-sale securities ①A. Other comprehensive income Other comprehensive income ②B. Other comprehensive income Net income ③C. Net income Other comprehensive income A. ① B. ② C.③

单选题 Use the following data for Questions. Bentlom Company's common sized financial statements show that: Earnings after taxes 15 % Current liabilities 20% Equity 45 % Sales $ 800 Cash 10% Total assets $ 2000 Accounts receivable 15% Inventory. 20%

单选题An analyst does research about intangible assets. Expenditures on research are most appropriately: A. expensed in the year incurred. B. capitalized as intangible assets and amortized over the life of the asset. C. capitalized as intangible assets and tested annually for impairment of value.

单选题Using a 365-day year, if a firm has net annual sales of $ 250000 and average receivables of $150000, what is its average collection period?

单选题Which real estate valuation approach is most likely to require specific information about an investor to estimate the value of a property? A. Discounted after-tax cash flow approach. B. Income approach. C. Sales comparison approach.

单选题Which of the following is least likely to be considered a role of financial statement analysis? A. Determining whether to invest in the company's securities. B. Deciding whether to extend trade credit to the company. C. Assessing the management skill of the company's executives.

单选题Considerthegraphbelow.Assumeatraderownsasharecurrentlypricedat$100.Shewritesacalloptiononthissharewithanexercisepriceof$110andanassumedpriceof$4.Foranystockpricelessthanorequalto$110

单选题Which of the following statements about investment constraints is FALSE? A. Diversification efforts can increase tax liability. B. Investors concerned about time horizon are not likely to worry about liquidity. C. Tax deferral usually makes more sense for the young than for the old.

单选题The nominal risk-free rate of interest equals the real risk-free rate: A. minus expected inflation. B. plus actual inflation. C. plus expected inflation.

单选题Which of the following statements about financial statements and reporting standards is least accurate ? A. Reporting standards focus mostly on format and presentation and allow management wide latitude in assumptions. B. The objective of financial statements is to provide economic decision makers with useful information. C. Reporting standards ensure that the information in financial statements is useful to a wide range of users.

单选题In contrast to over-the-counter options, futures contracts:

单选题Lin Liang, CFA, is an investment manager and an auto industry expert