Decrease in accounts payable (190) Increase in wages payable 133 Operating cash flows 3,142 An analyst is converting the cash flow statement to the direct method. The amount (in $ 000s) that she calculates for "Cash paid to suppliers" is closest to: 11,222. 8,582. 9,984. Question not answered Metric $ 000s Cost of goods sold $ 9,283 Add: increase in inventory 511 Equals purchases from suppliers 9,794 Add: decrease in accounts payable 190 Cash paid to suppliers $9,984 CFA Level I "Understanding Cash Flow Statements," Elaine Henry, Thomas R. Robinson, Jan Hendrik van Greuning , and Michael A. Broihahn Sections 126.96.36.199, 3.3 Question 51 of 240 Which of the following inventory valuation methods best matches the actual historical cost of the inventory items sold to their physical flow?
FIFO Specific identification LIFO Question not answered Specific identification best matches the physical flow of the inventory items because it tracks the actual units that are sold. CFA Level I “Inventories,” Michael A. Broihahn Sections 3.1, 3.2, 3.4 Question 52 of 240 In 2013, a software company recorded unearned revenue related to a software license that it will recognize as revenue during 2014. Ignoring income taxes, the recognition of the software revenue in 2014 will most likely result in 2014 cash from operations being: lower. higher. unchanged. Question not answered The company received the cash in 2013 when it recorded the unearned revenue, and it increased cash from operations in that year. In 2014, the revenue is earned, but there is no cash exchanged and thus no effect on the cash from operations, ignoring taxes. CFA Level I "Financial Reporting Mechanics," Thomas R. Robinson, Jan Hendrik van Greuning, Karen O'Connor Rubsam, Elaine Henry, and Michael A. Broihahn Section 5.1 "Understanding Cash Flow Statements," Elaine Henry, Thomas R. Robinson, Jan Hendrik van Greuning, and Michael A. Broihahn Sections 3.1, 3.2.5 Question 53 of 240 According to the International Accounting Standards Board's (IASB) Conceptual Framework for Financial Reporting, the two fundamental qualitative characteristics that make financial information useful are best described as: relevance and faithful representation. timeliness and accrual accounting. understandability and verifiability. Question not answered Relevance and faithful representation are the two fundamental qualitative characteristics that make financial information useful, according to the IASB Conceptual Framework. CFA Level I "Financial Reporting Standards," Elaine Henry, Jan Hendrik van Greuning, and Thomas R. Robinson Section 5.2 Question
54 of 240 For which of the following assets is it most appropriate to test for impairment at least annually? A patent with a legal life of 20 years A trademark with an indefinite expected life Land Question not answered Intangible assets with indefinite lives need to be tested for impairment at least annually.
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