Free IFPUG ABV Practice Test & Real Exam Questions
The analyst should keep in mind that (1) if earnings are adjusted from LIFO to FIFO and
(2)
if after-tax income or
after-tax cash flow is used as the appropriate
measure of economic income, then the adjustment should be:
(2)
if after-tax income or
after-tax cash flow is used as the appropriate
measure of economic income, then the adjustment should be:
Correct Answer: C
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The capital asset pricing model is part of a larger body of economic theory known as capital market theory. Capital market theory also includes:
Correct Answer: B,C,D
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When there is a choice among accounting practices, private companies tend towards a more conservative selection in order to minimize taxes, while public companies may account more aggressively in order to report:
Correct Answer: B
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According to the American institute of Certified Public Accountants (AICPA), the term financial statement refers to:
Correct Answer: A
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Which of the following is NOT the method of computing depreciation charges all acceptable to the IRS for income tax purposes?
Correct Answer: D
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Statutory law Case law
Administrative rulings
Company documents
Contracts between parties precedent established by prior transactions Legal documents. These are some of the most important sources of guidance as to:
Administrative rulings
Company documents
Contracts between parties precedent established by prior transactions Legal documents. These are some of the most important sources of guidance as to:
Correct Answer: B
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If one assumes that the business will continue indefinitely as a viable going concern after the number of years for which discrete projections were made, the procedure/s commonly used to estimate the terminal value at the end of discrete projection period is/are:
Correct Answer: A,B
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In comparing companies with very different accounting practices, one way for an analyst to adjust for intangible items on the financial statements is to eliminate:
Correct Answer: C
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"The value of an asset is the present value of its expected returns. Specifically, you expect an asset to provide a stream of returns during the period of time you own it. To convert this estimated stream of returns to a value for the security, you must discount this stream at your required rate of return. This process requires estimates of (1) the stream of expected returns and (2) the required rate of return on the investment. Value today always equals future cash flow discounted at the opportunity cost of capital." This is actually:
Correct Answer: D
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The analyst will begin which process of revaluing each of the asset accounts and, if necessary, each of the liability accounts?
Correct Answer: C
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Documentable, arm's-length, bona fide offers to buy or sell may also be useful evidence of value. Funded bona fide offers (i.e. offers for which the financing for the offer is already in place) should be gives more weight and more consideration than:
Correct Answer: A
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Most of the mechanisms for setting prices in buy-sell agreements generally fall into one or a combination of following categories EXCEPT:
Correct Answer: A
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