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NEW QUESTION: 1
Tobin Yoakam, CFA, is analyzing the financial performance of Konker Industries, a U.S. company which is publicly traded under the ticker KONK. Yoakam is particularly concerned about the quality of Konker's financial statements and its choices of accounting methodologies.
Below is a summary of Konker's financial statements prepared by Yoakam.
Konker has an operating lease for several of its large machining tools. The lease term expires in five years, and the annual lease payments are $2 million. The applicable interest rate on the operating lease is 9%.
Yoakam believes that the operating lease should be capitalized and treated as a finance lease. For purposes of adjusting the financial statements, Yoakam believes that the machining tools should be depreciated using straight-line depreciation with a salvage value of $3 million.
At the beginning of 20X8, Konker formed a qualified special purposes entity (QSPE) and sold a portion of its accounts receivables to the QSPE. The total amount of accounts receivables sold to the QSPE was
$13.5 million. Yoakam has noted in his research that the Financial Accounting Standards Board (FASB) is considering the elimination of qualified special purposes entities.
Konker has three major operating divisions: Konker Industrial, Konker Defense, and Konker Capital.
Yoakam has computed the EBIT margin for each division over the last three years as well as the ratio of the percentage of total capital expenditures to the percentage of total assets for each division.
Since Yoakam is concerned about the quality of Konker's earnings, he decides to analyze the accrual ratios using the balance sheet approach. The table below contains the last three years of accrual ratios for Konker and the industry average.
With respect to the balance sheet accrual ratio, which of the following, other things equal, would most likely lead to an increase in the ratio for a growing company?
A. Extending the time the firm takes to pay its suppliers.
B. A significant build-up of cash.
C. A build-up of inventory.
Answer: C
Explanation:
Explanation/Reference:
Explanation:
The balance sheet accrual ratio is the year-ovcr-year increase in net operating assets divided by average net operating assets. An increase in payables (a liability) will tend to decrease (reduce the change in) net operating assets, while an increase in inventory will tend to increase (increase the change in) net operating assets. Cash is not an operating asset and does not affect the ratio. (Study Session 7, LOS 26.e)
NEW QUESTION: 2
A vSphere Administrator observes that no devices are showing up under an iSCSI Storage Adapter.
Which three are valid troubleshooting methods? (Choose three.)
A. Verify that the CHAP authentication settings are correct
B. If Jumbo Frames are required, verify that packet fragmentation is allowed
C. Use the nc -z target_ip 3260 command to verify that the ESXi host can reach the iSCSI TCP port (default 3260) on the storage array
D. Verify that the MTU size is lower than 9,000 bytes
E. Log in to the ESXi Shell, run the vmkping target_ip command to verify that the VMkernel interface on the host can ping the iSCSI targets
Answer: A,C,E
NEW QUESTION: 3
Which port is used for NSX REST API Requests?
A. 0
B. 1
C. 2
D. 3
Answer: A
NEW QUESTION: 4
A. Option E
B. Option C
C. Option B
D. Option D
E. Option A
Answer: C
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