During 2010, Company A sold a piece of land with a cost of $6 million to Company B for $10 million. Company B made a $2 million down payment with the remaining balance to be paid over the next 5 years
A. $4 million using the accrual method.
B. $0.8 million using the installment method.
C. $2 million using the cost recovery method.
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Eileen Fisher, CFA has been a supervisory analyst at SL Advisors for the past ten years. Recently, one of her analysts was found to be in violation of the CFA Institute Standards of Professional Condu
A. Yes.
B. No,because she has taken steps to ensure the violations will not be repeated by the analyst.
C. No,because she is taking steps to implement compliance procedures that are more than adequate.
Meshack Bradovic, CFA, was recently hired as a credit analyst at a credit rating agency whose major clients include publicly listed companies on the local stock exchange. One of the clients is current
A. Quit his position with the firm.
B. Upgrade the rating but note his objections in writing.
C. Disassociate with the credit rating report,the bond issue and the client.
Other factors held constant, the reduction of a companys average accounts payables due to suppliers offering less trade credit will most likely:
A. Reduce the operating cycle.
B. Increase the operating cycle.
C. Not affect the operating cycle.
In estimating the value of inactively traded securities of a closely held corporation, which of the following is applied to the market value of a publicly traded comparable company?
A. Control premium.
B. Marketability discount.
C. Minority interest discount.