CFA一级考试模拟试题及答案

CFALevel1MOCKEXAM1AfternoonSessionTimeLimit:3Hours1.George,CFA,acitizenofGermany,isdoingbusinessinaneighboringcountry.AccordingtoAIMRStandardsofProfessionalConduct,whichstatementappliestoGeorge'sconductwhenheisconductingHeshouldadheretowhicheverofFrance's,theothercountry'sorAIMR'srulesthatimposetheHeshouldonlyadheretothesecuritieslawsofFranceeventhoughtheydonotcoversomeoftheHeshouldadheretothesecuritieslawsoftheothercountryeventhoughtheyarenotasstringentas Charlie,aCFAcandidate,gotacopyofacomputerizedstockselectionmodeldesignedbyaformerMBAclassmatewhoisaWallStreetanalyst.AfterspendingsometimereviewingtheprogramandmakingafewminoradjustmentsCharlieshowedhernewmodeltohersupervisor.HersupervisorsaidshedidagreatjobandtoldCharlietoincorporatenetnewmodelinhernextindustryreview,whichshedid.Charliehas:vvvnoneoftheabove.Sheria,CFA,justjoinedaninvestmentfirmandreportsdirectlytoRaymond,whoheadstheSheriaththemanagingdirectorofthefirminwritingaboutAIMR'srequirements.h Edison,CFA,supervisesagroupofresearchanalysts,noneofwhomareCFAcharterholdersorCFAcandidates.Hehasattemptedonseveraloccasionstogethisfirmtoadoptacompliancesystemtoinsurethatapplicablelawsandregulationsarefollowed.Thefirm'sprincipals,however,havenevertakenoaction,becausetheemployeesarenotCFAcharterholdersorCFAcandidates.tredesignthecompliancesystem,becausenoalternativeexiststhatwillkeephimincompliancewithdeclineinwritingtoacceptsupervisoryresponsibilityuntilhisfirmadoptsreasonablecomplianceNo,ifhecandetermine,ingoodfaith,thatthehighercommissionsarecommensuratewiththevalueYes,Samuel,CFA,closelyfollowsthecomputerindustry.Inthecourseofhisresearch,hediscoversthattheStoneLimited,asmallunknownnetworkingcompany,hasjustsignedseveralmajorcontracts.Afterconsiderableresearch,SamuelwroteastrongbuyrecommendationforStone.Managementislikelytotakeaweektoapprovehisreport.Inthemeantime,whichstandardcoversSamuel'sbehaviorregardingthedisseminationofhisresearchStandardIV(B.4)PriorityofTransactions..StandardV(A)ProhibitionagainstUseofMaterialNon-PublicInformationPlacingordersforyourfirmaccountsbeforeissuingabuyrecommendation.Acceptingandexecutingabuyorderforastockthatyouhaverecentlydowngradedfrombuytosell

withoutmentioningthefacttotheclient.Havingane-mailalertsystemforyourbestcustomerssotheycanlearnaboutrecommendationchangesbeforethefirm'sregularcustomers.Alloftheabove.DorisisaCFAcharterholderandtheportfoliomanagerofatechnologyfund.Shemaintainsaretirementaccountwithabrokeragefirmlocatedinadistantcity.AccordingtoAIMRStandardsofProfessionalConduct,whichofthefollowingactionsshouldDoristakewhenheidentifiesaparticularlyattractiveissuethathewantstobuyDorisshouldacquiresharesforher:A. mutualfundandheraccountatthesametime.B. ownaccountbeforeacquiringthemforhermutualfund.C. mutualfundbeforeacquiringthemforherownaccount.D. mutualfundbutrefrainfrombuyingsharesfromherownaccount.9. Maggie,CFA,isastockanalystatalargemultinationalbanktrustdepartment.AcompanywhosestockwasheldbyMaggie'semployerandbyhermotherannouncedacashtenderoffer.Underthetermsoftheoffer,thefirstmillionsharestenderedwouldbeacceptedinfullat$50ashare(whichwas20percentabovetheexistingmarket)andthenextonemillionsharesonaproratabasisalsoat$50ashare.Maggieimmediatelycalledhermotherwiththenewsbutwaitedafewdaystotenderholdingsofthetrustdepartment.Maggieisawarethathermother'swillincludesherastherecipientofherinvestmentportfolio.Maggie'sactionsviolated:StandardIII(B)DutytoEmployer.StandardIV(B.3)FairDealing.StandardIV(B.4)PriorityofTransactions.StandardIV(B.5)preservationofconfidentiality.10. Vincent,aCFAcandidate,tellsaprospectiveclient,"Imaynothavealong-termtrackrecord,butIamsurethatyouwillbesatisfiedwithmyperformance.OverthethreeyearsthatIhavebeeninthebusiness,myequity-orientedclientshaveaveragedatotalreturnofover20percentayear."ThestatementistechnicallycorrectbutVincentonlyhasafewequityclients,andoneofthesetookalargepositioninapennystock(againstVincent'sadvice)andrealizedahugegain.ThislargereturncausedtheaverageofallofVincent'sclientstoexceed20percentperyear.Withoutthisoneinvestment,theaveragegainwouldhavebeen8percentperyear.HasVincentviolatedtheStandardsofProfessionalConductYes,becausethestatementmisrepresentsVincent'strackrecord.No,becausethestatementisatrueandaccuratedescriptionofVincent'strackrecord.No,becauseVincentisnotpromisingthathecanearnthisreturninthefuture.No,becausethestatementreflectedtheresultsobtainedfromanappropriatelymeasuredcompositereturn.11. KarenisaCFAcharterholderandfinancialanalystwhofollowstheSunLimitedforherfirm,Mooninvestments.AccordingtoAEMRStandardsofProfessionalConduct,whichofthefollowingitemswouldKameyleastlikelyhavetodisclosetohersupervisoratMoonThefactthat:KarenwasonSun'sboardofdirectors.KarenwasdatingthepresidentofSunlimited.Karen'ssister-in-lawworkedinthepayablesdepartmentofSunLimited.Karen'smotherhasatrustaccountthatowns10.000sharesofSunLimited.

12. WhichofthefollowingstatementsaboutStandardIV(B8).DisclosureofReferralFees,ismostcorrectStandardIV(B8)requiresthemembertodisclose:thenatureoftheconsiderationandtheestimateddollarvalueoftheconsideration.thepercentageofthemember'sbusinessthatcomesfromreferrals.allreferralagreementsorallyorinwritingtoanyclientorprospectthathasbeenreferred.noneoftheabove13. GordonisaCFAcharterholderandthepensionfundmanagerforaworker'sunion,TheunionpresidentinformedhimthatduringaunionmeetingtodaywithZincLimitedhelearnedthatZincwillannounceseveralplantclosingstomorrow.Becausetheworker'sunionpensionhasasizablepositioninZinc,theunionpresidentwantsGordontosellthepension'sholdingsinZinctodaybeforetheannouncementismadepublic.Gordonshould:informAIMRinwritingoftheunionpresident'srequest.contacttheJusticeDepartmentandtellthemabouttheunionpresident'srequest.telltheunionpresidentthatthisactionisillegalandrefusetosellthestockuntilaftertheannouncement.sellthepension'sholdingsinZincasdirected.14. WhichofthefollowingisoneofthefourmaintopicsoftheAIMRPerformancePresentationStandardsCalculationofreturn.Creationandmaintenanceofcomposites.BornstatementandB.Noneoftheabove.15. WhichofthefollowingisNOTconsistentwithAIMRPerformancePresentationStandardsCompositereturnsmustincludecashandcashequivalents.Presentationofperformancemustdiscloseameasureofdispersionofindividualcomponentportfolios

abouttheaggregatecompositereturn.Compositemustincludeallportfoliosbasedonequalweighting.Performancemustbepresentedonatotalreturnbasisusingaccrual-basisaccountingcalculatedusing

time-weightedratesofreturnaveragedusingthegeometricmethod.16. WhichofthefollowingviolatestheAIMRStandardsofProfessionalConductontheappropriateuseoftheCharteredFinancialAnalystandCFAmarkTimmyhaspastLevelIIandisregisteredtotaketheLevelIIIexamination.Inherresumeshestates,"IamaLevelIIcandidateintheCFAProgram."TimmyhaspassedallthreelevelsoftheCFAProgram,hasreceivedhercharter,andisacharterholderingoodstanding.Shewritesonherbusinesscard,"TimmyWong,CharteredFinancialAnalyst."TimmywasawardedtheCFAdesignationin1980butstoppedpayingduesin2000.Inherretirementspeechin2001,hestated"IwasawardedtheCFAcharterin1980."TimmyhaspassedallthreelevelsoftheCFAProgram,hasreceivedhercharter,andisacharterholderingoodstanding.Hercompanywritesinpromotionalliterature"TimmyWongisoneoftwoCFAsinthecompany."17. Susan'scompanyisparticipatinginaninvestmentanalysisproject.Hermanagergaveherareportfromanothercompany'sanalyst,alsoworkingontheproject,andtoldhertoputitoncompanyletterheadanddistributethereportbytheendoftheday.BeinganAIMRmember,complies,whichofthefollowingAIMRStandardsofProfessionalConductwillsheprobablyhavebrokenifSusancomplyswithhermanagerinstructionIV(A.2)ResearchReports.IV(B.2)PortfolioInvestmentRecommendationsandActions.IV(B.6)ProhibitionagainstMisrepresentation.II(C)ProhibitionagainstPlagiarism.18. John,CFA,wantstoundertakeanindependentconsultingpracticewhileemployed.Hemustgetwrittenpermissionfrombothhisemployerandthecompanywhoishiringtheanalyst'sconsultingservices.AccordingtotheAIMRStandardsonProfessionalConduct,whichofthefollowingstatementsaboutthepermissionrequestismostcorrectThispermissionrequesttotheemployershouldmentionthe:typeofserviceshewillpensationhewillreceive.timedurationtheservicesareexpectedtocover.Alloftheabove.19. David,CFA,changeshis"buy"recommendationonWeathElectronicsLimitedto"sell"basedsolelyonaconversationbetweenseveralworkersofWeathElectronicsLimitedheoverheardinabar.WhichstandarddidDavidviolateIV(A.1)ReasonableBasisandRepresentations.IV(B.2)PortfolioInvestmentRecommendationsandActions.IV(B.6)ProhibitionagainstMisrepresentation.V(A)ProhibitionagainstUseofMaterialNonpublicInformation.20. AccordingtoAIMRStandardsofProfessionalConductStandard,April,aCFAcandidate,juststartedhernewjobasananalystandplanstomakeherfirstvisittoa

company.whichofthefollowingstatementsregardingspecialcostarrangementsandgiftsisTRUETo'complywiththestandard,Aprilshouldaccept:onlyonegiftperyearfromacompany.airtransportationandhotelexpensesoncompanyvisitspanyairtransportationonlyifcommercialtransportationisnotavailable.reasonableexpensesandcompensationfromacompanyifshenotifiesheremployerproperlyinwriting.21. Billy,CFA,tellsaprospectiveclientthattheearningsofK&KLimitedwillbe$10.05persharenextfiscalyear.Billyviolated:A. StandardV(A)ProhibitionagainstUseofMaterialNonpublicInformation.B. StandardlV(B.2c)Distinguishbetweenfactsandopinions.StandardIV(A.lc)Avoidanymaterialmisrepresentations.StandardIV(B.5)PreservationofConfidentiality.22. AccordingtoAIMRStandardsofProfessionalConductStandard,whichofthefollowingactivitiesviolatesStandardIV(B.4),PriorityofTransactionsAnanalyst:buyssharesforhispersonalaccountafterallthefirm'sclientshavebeeninformedandtheirtradescompleted.buysstockforhisownaccountonapersonalinstinctwhilenotdoingsoforhisclients.makestradesforhisson'saccountafterhetradeshisinstitutionalaccounts.makestradesforhisfirm'saccountbeforehandlingtheclienttrades.23.Stephen,atraineeandCFAcandidate,isinhisfirstweekwithSKLLimited,alocalbrokeragehouse.Stephenwasgivenaphonelistandtoldtomakeafewcoldcallstoroundupsomeclients.Togeneratebusinesshehasmadevariousstatements.AccordingtoAIMRStandardsofProfessionalConduct,inwhichofthefollowingstatementshasStephenNOTmadeamaterialmisrepresentation"Ipersonallyguaranteethisinvestment.It'sasurewinner.""Myfirmhasconsistentlyoutperformedthemarketindexesandwillcontinuetodoso.""Trustme,I'vebeenintheinvestmentbusinesslongenoughtoknowwhatI'mtalkingabout,""MyfirmcannotprovidealltheFinancialandinvestmentservicesyouneed,butwedoofferadvisoryservices."24. Catherine,aCFAcharterholderandananalystforD&GInvestmentLimited,ispreparingabuyrecommendationontheToysLimited.AccordingtoAIMRStandardsofProfessionalConduct,whichofthefollowingisNOTaconflictofinterestthathewouldnormallydiscloseCatherine'ssonhasatrustfundthatholdsasubstantialblockofToysLimitedstock.CatherinehasaconsultingcontractwiththeToysLimited.Catherine'snext-doorneighborworksatToysLimited.D..D&GisamarketmakerfortheToysLimitedstock.

25.AmyinveststhefollowingamountsattheendofYear1toYear4:Year1234Amount 1000 1500 2000 2500($) Ifitearnsa20%compoundedinterestrate,calculatetheaccumulatedamountattheendofYear4:$7,000.$8,576.$8,788.Noneoftheabove.26. Thereisabondcontainsthatcouponof$80,itpaysattheendofeachyearindefinitely.Thecouponpaymentoccursoneyearfromnowandtherequiredrateofreturnis12%.Whatisthebondworthtoday$625.$666.67.$788.78.Noneoftheabove.27. Ananalystconstructsahistogramandfrequencypolygonofmonthlyreturnsforaggressiveequityfundsovera20-yearperiod.WhichofthefollowingstatementsaboutahistogramorafrequencypolygonisFALSEBothahistogramandafrequencypolygonprovideagraphicaldisplayofdatafoundinafrequencydistributionon.Afrequencypolygonisabarchartofcontinuousdatathathavebeengroupedintoafrequencydistribution.Theheightofeachbarinahistogramrepresentstheabsolutefrequencyforeachreturninterval.Alloftheabove.28. Basedonthefollowinginformationaboutthereturnsfor11bonds,findoutthemean,medianandmode.10,10,12,14,16,16,16,17,17,18,19MeanMedianMode A. 16 16 17 B. 16 15 17 C. 15 15 16 D. 15 16 16

29. Asampleofmonthlyreturnsofaggressivegrowthfundscontains35,20,30,50and55.Findouttherange,meanabsolutedeviation,andvarianceofthedataset MeanAbsolute SampleRangeDeviationVariance A. 17 11.6 415 B. 17 23.2 207.5 C. 35 23.2 415 D. 35 11.6 207.530. Adistributionwithameanof15andarangeof2to25wouldbe:normallydistributed.positivelyskewedtotheright.negativelyskewedtotheleft.Cannotbedetermine31. WhichofthefollowingstatementsaboutdependentandindependenteventsisTRUETwoeventsareindependentiftheoccurrenceofoneisrelatedtotheprobabilityofoccurrenceoftheother.Themultiplicationruleforprobabilitiesappliesonlytotwoindependentevents.Themultiplicationruleforprobabilitiescanbeusedtodeterminethejointprobabilityoftwoeventsthataredependentorindependent.Noneoftheabove.32. Thereisaninvestmentwhichhasameanandstandarddeviationof15%and10%respectively.Assumeitisanormaldistribution,whichofthefollowingisFalseA. Theprobabilityofgettingareturnlessthan10%isabout16%.B. Theprobabilityofgettingareturngreaterthan5%isabout84%.C. Theprobabilityofgettingareturngreaterthan35%isabout2.5%.D. Theprobabilityofgettingareturnbetween5%and25%isabout68percent.33. Giventhatthevarianceis289forarandomsampleof500stocks.Findoutthestandarderrorofthesamplemeanisclosestto:6.0.99.noneoftheabove.34. Ananalystconductsatwo-tailedtesttodeterminewhetherdifferencesbetweenthemeansoftwopopulationsexist:H0:μ1-μ2=0versusH2:μ1–μ2≠0.Assumethathepopulationsareindependent,normallydistributed,andhaveunequalandunknownvariances.Thecriticalvaluewith50degreesoffreedomis2.126.Thecomputedteststatisticist=1.753.Usingasignificancelevelofх=0.05,whichofthefollowingstatementsisTRUEUseat-testtorejectthenullhypothesisandacceptthealternativehypothesis.Useat-testtoacceptthenullhypothesisandrejectthealternativehypothesis.Useaz-testtorejectthenullhypothesisandacceptthealternativehypothesis.Useanz-testtoacceptthenullhypothesisandrejectthealternativehypothesis.20102030Thecumulativeabsolutefrequencyofthethirdintervalis50..WhichofthefollowingstatementconcerningaboutthearithmeticmeanisFALSE It It Itis Thereisagroupofstockscontaining7,8,9,10,10,10,11,12,13and30.SecurityMeanMonthlyReturnStandardDeviation10.30.420.60.631.34.841.75.2Whichsecurityhasthelowestandhighestlevelrelativerisk Relative DispersionLowestHighestA. 1 3B. 2 3C. 3 2D. 4 1The95percentconfidenceintervalwillbefrom2.16percentto17.84percent.Noneoftheabove.WhichofthefollowingabouttheadesirablepropertyofanestimatorisFALSEUnbiasedness.44. Accordingtothecrowding-outeffect,whichiseffectbyusingthesalesofgovernmentbondstofinancetofinanceexcessgovernmentspendingIncreasesinGDP.increaseinprivateinvestmentspending.decreasetherealinterestrate.raisetherealinterestrate.

45. Basedonthefollowingdata,whatistheexcessamountthatthebankcouldloanoutReserverequirement:20%CashondepositwithFederalReserve:$50millionLoan:$80millionDemandDeposit:$150millionA. $20million.B. $40million.C.$60million.D.Noadditionalloans.46. WhichofthefollowingstatementsaboutadaptiveexpectationsisFALSEwithadaptiveexpectationDecisionmakersmakerandomerrorsbuttheymakesystematicerrorswithrationalexpectations.Decisionmakersadjustmoreslowlythanthosewithrationalexpectations.Decisionmakersbasetheirfutureexpectationsonactualoutcomesobservedduringrecentperiods.Noneoftheabove.47. Underthecompetitiveprice-searchermarkets,thefirmwillearninlong-runequilibriumand;A. normalprofitB. substantialeconomiclosses.C. substantialeconomicprofits.D. zeroeconomicprofits.48. Basedonthelawofcomparativeadvantage,jointoutputwillbegreatestwheneachcountry;importgoodswhenforeignersarewillingtosupplythematalowercostthandomesticproducts.specializesinproducingthoseproductstheydobest.bothstatementsAandB.noneoftheabove49. AJapanesebuyequipmentfromU.S.Intheforeignexchangemarket,thistransactionwillcreatea:asupplyofyensanddemandfordollars.ademandforyensandsupplyofdollars.ademandforbothdollarsandmarks.asupplyofbothdollarsandyens.

50.Inbalance-of-paymentstransactions,thecurrentaccount:measurestheflowofallloansandinvestmentfunds.equalsimportsminusexports.recordofalltransactionswithforeignnationsthatinvolvetheexchangeofmerchandisegoodsandservices,currentincomederivedfrominvestments,andunilateralgifts.Noneoftheabove.51. GiventhattherealrateofdomesticandrealrateofUnitedStatesis8%and5%respectively,thespotexchangerateis3D/$,whatistheexpectedforwardexchangerate.2.3.09.noneoftheabove.52. Whichofthefollowingwillcauseacurrency'sbid-askspreadwillnarrowerifThebid-askspreadisforasmalltransactionratherthanalargeone.Thebid-askspreadisaspotquoteratherthanaforwardquote.Thecurrencyisinactivelytraded.Alloftheabove.53.Ascomparedtothecompletedcontractmethod,thepercentagecompletionmethodwillresultin:lowertotalassets.greatercashflows.greatervolatilityofincome.lowernetincome..reducethereserverequirements.reducegovernmentexpenditures.56. WhichofthefollowingstatementsaboutthesupplyandthedemandofmoneyisTRUEThesupplyofmoneyisdeterminedbythemonetaryauthoritiesandthedemandformoneyisdirectlyrelatedtothemoneyinterestrate.Thesupplyofmoneyisdeterminedbycommercialbanksandthedemandformoneyisdirectlyrelatedtothemoneyinterestrate.Thesupplyofmoneyisdeterminedbycommercialbanksandthedemandformoneyisinverselyrelatedtothemoneyinterestrate.Thesupplyofmoneyisdeterminedbythemonetaryauthoritiesandthedemandformoneyisinverselyrelatedtothemoneyinterestrate.57. Ifthereisanunanticipatedincreaseinthemoneysupply,itwillinitiallyexertitsprimaryimpacton:inflation,particularlyifexcesscapacityifpresent.prices,iftheeconomyisnotoperatingatfullemploymentlevel.outputandemploymentratherthanonprices.Noneoftheabove.58. Whichofthefollowingcurvedoesthelawofdiminishingmarginalreturnsexplainaveragevariablecostcurve.averagefixedcostcurve.marginalaveragecostcurves.shortruncostcurves.59. Ifthefirmispricetaker,itwilltendtoexpanditsoutputuntil:themarketpriceequalsthemarginalcost.itsmarginalrevenueisnegative.itsmarginalcostisgreaterthanthemarginalrevenue.noneoftheabove.60. IftheexchangeratevalueoftheBritishpoundgoesfrom$1.7to$1.5,thenthepoundhas:depreciatedandtheBritishwillfindU.S.goodscheaper.depreciatedandtheBritishwillfindU.S.goodsmoreexpensive.appreciatedandtheBritishwillfindU.S.goodscheaper.appreciatedandtheBritishwillfindU.S.goodsmoreexpensive.

61. WhichofthefollowingstatementaboutexchangeratesisFALSEA. Inregularlocaldirectexchangeratesthedollarisalwaysinthedenominator.B. Non-U.S.dollarforeignexchangeratequotesarecalledcrossrates.C. Whentheexchangerategoesfrom0.8DEM/USDto0.4DEM/USDthemarkhasdepreciatedrelativetothedollar.D.Alloftheabove.62 Givethattheaveragenumberofdaystheinventoryinstockis60days,calculatetheinventoryturnoverratio: A. 5 B. 6 C. 7 D. CannotbedeterminedBasedonthefollowingdatatoanswerQuestions63to65.Acompanyhadthefollowingchangesinitsbalancesheetaccounts:Anincreaseinaccountsreceivable $50Adecreaseinaccountspayable $40Anincreaseininventory $60Saleofcommonstock $150Repaymentofdebt $20Depreciation $10NetIncome $70063. Thecompany'scashflowfromoperationsis:A. $750.B. $640.C. $560.D. noneoftheabove.64. Thecompany'scashflowfrominvestingis:A. $0.B. $5.C. $100.D. $150.65. Thecompany'scashflowfromfinancingis:A.$20.B.$130.C. $150.D. noneoftheabove.

66. Studythefollowinginformation,calculatethefreecashflow.Cashflowfromoperations = $1,100Purchaseofplantandequipment = 70Saleofland = 50Issuanceofdebt = 350Paymentofdividends = 80A. $1,100.B. $1,080.C. $1,430.D. noneoftheabove.67. Giventhatthecurrentratiois2.0timesifweusecashtosettletheshort-termliability.HowwouldthistransactionaffectthecurrentandquickratiosCurrentRatioQuickRatioA. decrease decreaseB. decrease remainunchangedC. increase increaseD. increase remainunchanged68.ThefollowingstatementsaboutexternalliquidityisTrueexempt:Thenumberofsharestradedduringthetimeperiodisameasureofexternalliquidity.Thesmallerthenumberofshareholdersthegreatertheliquidity.Thesmallerthebidaskspreadthegreatertheliquidity.Alloftheabove.69. Assumingcontinueddeflation,usingLIFOwillhavea______currentratiothanusingFIFO,andthedifferencewill_______astimepasses. A. higher,increase B. higher,decrease C. lower,increase D. lower,decrease70. Inperiodsofinflationandincreasinginventoryquantities,FIFO,comparedtoLIFO,resultsin:A. highercashflows.B. lowerworkingcapital.C. lowernetincome.D. highercostofgoodssold.

71. Ifacompanyusinglast-infirst-out(LIFO)reportsaninventorybalanceof$25,000andaLIFOreserveof$5,000,theestimatedvaluefortheinventoryonafirst-infirst-out(FIFO)basiswouldbe:A. $10,000.B. $20,000.C. $30,000.D. $40,000.72. Assumingthecompanycontinuestoinvestinnewassets,theuseofaccelerateddepreciationmethodsinsteadofstraight-linedepreciationwillleadto:A. lowerreturnonassets.B. lowerreturnonequity.C. lowernetincome.D. alloftheabove.73. Assumethetaxrateisconstant,basedonthefollowinginformation,calculatethebalanceofthedeferredtaxaccountattheendofthesecondyearThecompanyacquiredtheassetfor$8,000.Theassetwillgenerate$5,000ayear.Thecompany'staxrateis40%.Fortaxpurposes,theassetcanbestraight-linedepreciatedover4years.Forfinancialaccountingpurposes,theassetisdepreciatedstraight-lineover5years.A. $0.B. $240.C. $480.D. noneoftheabove.74.WhichofthefollowingstatementabouttemporaryandpermanentdifferencesisFALSEPermanentdifferencesaredifferencesintaxableandpretaxincomethatneverreverse.Temporarydifferencesaredifferencesintaxableandpretaxincomethatreverseinfutureyears.Bothtemporaryandpermanentdifferencesresultindeferredtaxconsequences.Noneoftheabove.75. Ifacompanyhasalong-term"takeorpay"commitmentwithitsmajorsupplier.Whatthefinancialanalystshoulddowhencalculatingthecompany'sfinancialratios:ignorethearrangement.discounttheminimumfuturecommitmentandaddtothecompany'sdebt.discounttheminimumfuturecommitmentandaddedtothecompany'sdebtandassets.Noneoftheabove.UsethefollowingdatatoanswerQuestions76to78.NetSales $2,500Increaseininventory 8 70CashInterestPaid 40PurchaseofequipmentD. noneoftheabove.77. Thecashflowfrominvestingis:A. -$30.B. -$120.C. $120.D. noneoftheabove.78. Thecashflowfromfinancingis: A. -$80B. $80.C. $320.D. -$320.79. Amajoreffectoftheinstitutionalizationofsecuritiesmarketsis A. ThedevelopmentofaNationalMarketSystem. B. Theincreaseinblocktrades. C. BothAandB. D. Noneoftheabove.80.Studythefollowingdata,calculatethereturnonequityfor2001and2002.20012002Pre-interestprofitmargin(EBIT/S)_5Assetturnover(S/A)22LeveragemultiplierfA/E)22Taxretentionrate(1–t)0.80.8Interestexpenseratio(I/A)0.060.062001 2002A. 0.864 0.384 B. 0.673 0.271 C. 0.384 0.864D. 0.271 0.67381. WhichofthefollowingstatementaboutindexesistrueTheNikkei-DowJonesaverageisaprice-weightedindexofstocksfromthefirsttieroftheTokyoStockExchange.NewYorkStockExchangeIndexisapriceweightedindex.TheValueLineCompositeAverageisapriceweightedindex.Noneoftheabove.StudythefollowinginformationtoanswerQ82toQ84.Sales=$1,000Totalassets=$3,000Equity=55%Currentassets=55%Currentliabilities=35%Earningsaftertaxes=20%82. Calculatethedebt-equityratio:A. 18%.B. 36%.C. 72%.D. noneoftheabove.83. Calculatethecurrentratio:A. 0.77.B. 0.96.C. 1.57.D. noneoftheabove.84. Calculatetheaftertaxreturnonequity(ROE:A. 6%.B. 12%.C. 24%.D. Noneoftheabove.85. WhichofthefollowingstatementsaboutleasesisTRUEA. Tobeacapitalleaseforthelessor,itmustalsobecollectableandcontainnosignificantuncertaintiesconcerningunreimbursablecosts.B. Iftheleaseisacapitalle