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NEW QUESTION: 1
Which of the following is true about the impact of price inflation on financial ratio analysis?
A. Inflation impacts financial ratio analysis for one entity over time, but not comparative analysis of entities of different ages.
B. Inflation impacts only those ratios computed from balance sheet accounts.
C. Inflation impacts financial ratio analysis for one entity overtime, as well as comparative analysis of entities of different ages.
D. Inflation impacts comparative analysis of entities of different ages, but not financial ratio analysis for one entity over time.
Answer: C
Explanation:
Inflation has considerable impact on financial ratio analysis. This impact distorts both analysis of a single entity overtime and comparative analysis of different aged entities. During the year ended December 31. an entity had US $500,000 in sales revenue and purchased US $150,000 of inventory. The cost of goods sold was US $250,000 for the year. and the entity incurred US $ 25.000 of general and administrative expenses. The January 1 opening balance sheet was as follows:
The cost of long-term debt financing is 10% per annum, payable in one installment on December 31 of each year. The entity has a 50% tax rate. The entity has a dividend payout ratio of 25%. The fixed assets were 1-year old at the start of the current year. Were originally estimated to have a 6-year useful life. and are being depreciated on the straight-line basis.
NEW QUESTION: 2
Scenario
Additional Information
Chief Executive Officer (CEO): He started the company 25 years ago and knows his job very well. He injured his leg two years ago which has restricted his visits to the engineering area. As CEO he has an overall perspective of the business strategic requirements and the authority to commit resources as required.
Marketing Director: She has been with the company for three years, following a successful career with a publicity company. She has the ability to represent the needs of the business, particularly as this is a marketing project. She has the authority to commit the annual business marketing budget, from which the project will be funded, as she sees appropriate. She will be responsible for monitoring the expected benefits of the calendar, in particular the improvement of the company's image.
Engineering Manager: He has been responsible for many engineering innovations in the company and is still as keen and energetic as the day he started. VVhilst he will not be part of the project team, his staff will feature in the photos for the promotional calendar.
Central Records: This group of five staff looks after all company records and document control. They now maintain all project files.
Bright Lights: This is the local office supplies company. It supplies all the stationery and office equipment needs of the company and will supply the stationery for this project.
Portraits ltd: This is a professional photographic company with a number of excellent photographers and a history of successful work. This company has been selected to take the photos for the company calendar.
It has yet to be decided which of the photographers to use.
Which 2 statements explain why the Purchasing Manager should be appointed as a Senior Supplier for this project?
A. He is responsible for the performance of supplier contracts.
B. He is not appropriate for the role of Executive or Senior User.
C. He can influence the external supplier's Business Case.
D. He was an engineer and worked in that area before taking up his current position.
E. He is responsible for the organization's procurement activates.
Answer: A,E
NEW QUESTION: 3
The Global Evolution Center of the IP Planning and Design Service can provide 11M certification capabilities for several manufacturers.
A. 0
B. 1
C. 2
D. ib
Answer: B
NEW QUESTION: 4
What are the characteristics of IS-IS protocol? (Multiple Choice)
A. Better scalability
B. Support for rich regional features
C. Suitable for large-capacity route transfer
D. Simple message structure
Answer: A,C,D
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