Question30 of 40Which of the following statements is leastaccurate? IFRS Foundation trustees oversee the policy decisions of the FASB.The IASB is monitored by a board that includes the U.S. SEC.IFRS Foundation trustees appoint members of the IASB.Incorrect.The Financial Accounting Foundation, not the IFRS, oversees FASB.CFA Level I“Financial Reporting Standards,” by Elaine Henry, Jan Hendrik van Greuning, and Thomas R. RobinsonSections 3.1.1–3.1.2 Question31 of 40A company entered into a three-year construction project with a total contract price of $10.6 million and an expected total cost of $8.8 million. The following table provides cash flow information relating to the contract: ($ millions)Year 1Year 2Year 3TotalCosts incurred and paid$1.2$6.0$1.6$8.8Amounts billed and payments received$2.4$5.6$2.6$10.6If the company uses the percentage-of-completion method, the amount of revenue recognized (in millions) in Year 2 is closestto:
CFA Level I “Understanding Income Statements,” Elaine Henry and Thomas R. Robinson Section 3.2.1 Question32 of 40A company's balance sheet shows the following values (€):Cash12,000Marketable securities3,000Accounts receivable16,500Inventory8,745Prepaid expenses2,305Current liabilities32,580The company’s cash ratio is closestto: CFA Level I “Understanding Balance Sheets,” by Elaine Henry and Thomas R. Robinson Section 7.2 “Financial Analysis Techniques,” by Elaine Henry, Thomas R. Robinson, and Jan Hendrik van Greuning Section 4.3.1 Question33 of 40Which of the following ratios will most likelyresult in an increase in a company's sustainable growth rate?
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