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NEW QUESTION: 1
Nancy is reviewed her billing summary for her Google AdWords account. There is a line item in the billing summary titled 'Adjustment - Click Quality'. What does this line item mean?
A. Nancy has been credited for clicks on her ad that were deemed invalid clicks.
B. Nancy has been credited for clicks on her, for Google incurred cost overruns for displaying her ad beyond her given budget.
C. Nancy has been credited for clicks on her ad that took longer than five seconds to resolve.
D. Nancy has been credited for clicks on her ad that didn't take visitors to her domain.
Answer: A
NEW QUESTION: 2
Galena Petrovich, CFA, is an analyst in the New York office of TRS Investment Management, Inc.
Petrovich is an expert in the industrial electrical equipment sector and is analyzing Fisher Global. Fisher is a global market leader in designing, manufacturing, marketing, and servicing electrical systems and components, including fluid power systems and automotive engine air management systems.
Fisher has generated double-digit growth over the past ten years, primarily as the result of acquisitions, and has reported positive net income in each year. Fisher reports its financial results using International Financial Reporting Standards (IFRS).
Petrovich is particularly interested in a transaction that occurred seven years ago, before the change in accounting standards, in which Fisher used the pooling method to account for a large acquisition of Dartmouth Industries, an industry competitor. She would like to determine the effect of using the purchase method instead of the pooling method on the financial statements of Fisher. Fisher exchanged common stock for all of the outstanding shares of Dartmouth.
Fisher also has a 50% ownership interest in a joint venture with its major distributor, a U.S. company called Hydro Distribution. She determines that Fisher has reported its ownership interest under the proportioned consolidation method, and that the joint venture has been profitable since it was established three years ago. She decides to adjust the financial statements to show how the financial statements would be affected if Fisher had reported its ownership under the equity method. Fisher is also considering acquiring 80% to
100% of Brown and Sons Company. Petrovich must consider the effect of such an acquisition on Fisher's financial statements.
Petrovich determines from the financial statement footnotes that Fisher reported an unrealized gain in its most recent income statement related to debt securities that are designated at fair value. Competitor firms following U.S. GAAP classify similar debt securities as available-for-sale.
Finally, Petrovich finds a reference in Fisher's footnotes regarding a special purpose entity (SPE). Fisher has reported its investment in the SPE using the equity method, but Petrovich believes that the consolidation method more accurately reflects Fisher's true financial position, so she makes the appropriate adjustments to the financial statements.
Had Fisher Global reported its investment in the joint venture under the equity method rather than under the proportionate consolidation method, it is most likely that:
A. Reported expenses would have been higher.
B. Reported revenue would have been the same.
C. Fisher's net income would not have been affected.
Answer: C
Explanation:
Explanation/Reference:
Explanation:
Under the proportionate consolidation method, the proportionate share of the purchased firm's revenue and expenses would be reported on Fisher's income statement, increasing both expenses and revenues.
Under the equity method, Fisher's revenue and expenses are reported without adjustment, and the proportion of income from the purchased firm is reported separately, so that net income is the same under either method. (Study Session 5, LOS 21.a)
NEW QUESTION: 3
What is the result of increasing the value of the parameter ASM_POWER_LIMIT during a rebalance operation?
A. The ASM rebalance operation will likely consume fewer resources and complete in a shorter amount of time.
B. There is no ASM_POWER_LIMIT setting used in ASM.
C. The ASM rebalance operation will be parallelized and should complete in a shorter amount of time.
D. The ASM rebalance operation will consume fewer resources and complete in a longer amount of time.
E. None of the above
Answer: C
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