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NEW QUESTION: 1
When a user type is changed from Active to Inactive, what are two ramifications of this action?
A. The user type cannot be associated with any user accounts or groups.
B. Any account or groups that the user type is associated with will require that a new user type be selected.
C. The user type will no longer be visible in the list of available user types to be associated with a user account or groups.
D. The user type will need to be reverted from Inactive to Draft mode in order for any modifications to be saved.
Answer: C
NEW QUESTION: 2
William Jones, CFA, is analyzing the financial performance of two U.S. competitors in connection with a potential investment recommendation of their common stocks. He is particularly concerned about the quality of each company's financial results in 2007-2008 and in developing projections for 2009 and 2010 fiscal years.
Adams Company has been the largest company in the industry but Jefferson Inc. has grown more rapidly in recent years. Adams's net sales in 2004 were 33-1/3% higher than Jefferson but were only 18% above Jefferson in 2008. During 2008, a slowing U.S. economy led to lower domestic revenue growth for both companies. The 10-k reports showed overall sales growth of 6% for Adams in 2008 compared to 7% for
2007 and 9% in 2006. Jefferson's gross sales rose almost 12% in 2008 versus 8% in 2007 and 10% in
2006. In the past three years, Jefferson has expanded its foreign business at a faster pace than Adams. In
2008, Jefferson's growth in overseas business was particularly impressive. According to the company's 10- k report, Jefferson offered a sales incentive to overseas customers. For those customers accepting the special sales discount, Jefferson shipped products to specific warehouses in foreign ports rather than directly to those customers' facilities.
In his initial review of Adams's and Jefferson's financial statements, Jones was concerned about the quality of the growth in Jefferson's sales, considerably higher accounts receivables, and the impact of overall accruals on earnings quality. He noted that Jefferson had instituted an accounting change in 2008. The economic life for new plant and equipment investments was determined to be five years longer than for previous investments. For Adams, he noted that the higher level of inventories at the end of 2008 might be cause for concern in light of a further slowdown expected in the U.S. economy in 2009.
The accompanying table shows financial data for both companies' Form 10-k reports for 2006-2008 used by Jones for his analysis. To evaluate sales quality, he focused on trends in sales and related expenses for both companies as well as cash collections and receivables comparisons. Inventory trends relative to sales and the number of days' sales outstanding in inventory were determined for both companies. Expense trends were examined for Adams and Jefferson relative to sales growth and accrual ratios on a balance sheet and cash flow basis were developed as overall measures of earnings quality.
The quality of earnings as measured by balance sheet based accruals ratios showed:
A. strong improvement in Jefferson's earnings quality relative to Adams due to the sharp jump in the ratio in 2008 compared to the much smaller increase for Adams.
B. both companies' earnings quality improved due to the increase in the ratio with Jefferson showing the most improvement.
C. decrease in Jefferson's earnings quality relative to Adams due to the sharp jump in the ratio in 2008 compared to a much smaller increase for Adams.
Answer: A
Explanation:
Explanation/Reference:
Explanation:
The lower the ratio the higher will be the earnings quality. Jefferson's ratio rose sharply in 2008 compared to the previous years and was subitaniially above Adams. Thus, Jefferson's earnings quality is lower.
(Study Session 7» LOS 25-f)
NEW QUESTION: 3
A user brings in a smartphone for repair. The device is unable to send/receive calls or connect to WiFi. All applications on the device are working unless they require connectivity. Which of the following is MOST likely causing the problem?
A. VPN
B. Airplane mode
C. Tethering
D. Disabled hot-spot
Answer: B
NEW QUESTION: 4
When multiple warehouses are combined into one centralized warehouse, the requirement for safety stock is reduced because:
A. average cycle stock is reduced.
B. the total variability of demand is reduced.
C. safety stock becomes available-to-promise.
D. there is less in-transit inventory.
Answer: B