题目内容

A firm that purchases a building that it intends to rent out for income would report this asset as investment property using the cost model under:

A. U.S. GAAP only.
B. IFRS only.
C. Both U.S. GAAP and IFRS.

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Credit analysts are likely to consider a companys credit quality to be improving if the company reduces its:

A. Scale and diversification.
B. Margin stability.
C. leverage.

Train Company paid $8 million to acquire a franchise at the beginning of 20X5 that was expensed in 20X5. If Train had elected to capitalize the franchise as an intangible asset and amortize the cost o

A. Both would be higher with capitalization.
Both would be lower with capitalization.
C. One would be higher and one would be lower with capitalization.

When comparing a firm that uses LIFO inventory accounting to firms that use FIFO, an analyst should:

A. Subtract the LIFO reserve from cost of sales.
B. Add the change in the LIFO reserve to inventories.
C. Subtract the change in the LIFO reserve from cost of sales.

An analyst needs to compare the financial statements of Firm X and Firm Y. Which of the following differences in the two firms financial reporting is least likely to require the analyst to make an adj

A. Straight-line depreciation Accelerated depreciation
B. Direct method cash flows Indirect method cash flows
C. IFRS financial reporting U.S. GAAP financial reporting

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