Two software companies that report their financial statements under U.S. GAAP (generally accepted accounting principles) are identical exceptas to how soon they judge a project to be technologically feasible. One firm does so very early in the development cycle while the other usually waits until just before the project is released to manufacturing. Compared to the company that judges technological feasibility early, the one that waits until closer to manufacturing willmost likely report lower:
A. financial leverage.
B. total asset turnover.
C. cash flow from operations.
第1题
rklifts, etc.) for €50 million, which were valued by an appraiser as follows: Land €10 million, building €35 million, and equipment €5 million. The company incurred the following additional costs in getting the warehouse ready to use:
€2.0 million for repairs to the building’s roof and windows
€0.5 million to modify the interior layout to meet their needs (moving walls and doors, inserting and removing partitions, etc.)
€0.1 million on an orientation and training session for employees to familiarize them with the facility
The cost to be capitalized to the building account (in millions) for accounting purposes is closest to:
A. €37.0.
B. €37.5.
C. €38.5.
第2题
o its owners in a spin-off. The most appropriate way to account for the assets until the distribution occurs is to classify them as:
A. held for sale with no depreciation taken.
B. held for use until disposal with no deprecation taken.
C. held for use until disposal with depreciation continuing to be taken.
第3题
d equipment if incurred during construction of a new facility?
A. Interest costs during construction.
B. Expenses associated with classified advertising to recruit new employees.
C. Shipping costs for an assembly required for customizing new equipment.
第4题
anies have incurred expenses of approximately $250 million in the current year to expand their production facilities. Company A is highly leveraged. Company B does not have any outstanding debt and paid the $250 million from internal cash reserves. The most likely effect of the difference in the capital structures of the two companies will be:
A. Company A will report higher asset balances related to the facilities under construction.
B. The companies will report the same asset balances related to the facilities under construction.
C. Company A’s interest coverage ratio will be lower than it would have been if the company had expensed all interest.
第5题
Which of the following would most likely be lower in the early years of an asset’s life using accelerated depreciation methods rather than straight-line depreciation?
A. Investing cash flow
B. Shareholder’s equity
C. Cash flow from operations
第6题
An analyst has gathered the following information from the current year fixed asset disclosures of three competing companies:
Based on this information, which company is depreciating its building over the longest average period?
A. Company X.
B. Company Y.
C. Company Z.
第7题
The effects on a firm’s financial statement in the initial year when cost of an asset is expensed rather than capitalized are:
A. Pre-tax cash flow is lower and the debt-to-equity ratio is higher.
B. Pre-tax cash flow remains the same and the debt-to-equity ratio is lower.
C. Pre-tax cash flow remains the same and the debt-to-equity ratio is higher.
第8题
A company records an asset retirement obligation (ARO) because of environmental damage. Which of the following will most likelyresult from the recording an ARO in any given year?
A. An increase in return on equity and an increase in depreciation expense
B. An decrease in return on equity and an increase in depreciation expense
C. An decrease in return on equity and an decrease in depreciation expense
第9题
3 depreciation expense is closest to:
A. $27,200
B.$16,320
C. $9,792
第10题
expected cash flow of $1,365 per year. No principal prepayment is allowed. Assuming a discount rate of 5%, the security is most likely to have a present value of:
A. 4,109.
B. 4,000.
C. 3,717.
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