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NEW QUESTION: 1
Tobin Yoakam, CFA, is analyzing the financial performance of Konker Industries, a U.S. company which is publicly traded under the ticker KONK. Yoakam is particularly concerned about the quality of Konker's financial statements and its choices of accounting methodologies.
Below is a summary of Konker's financial statements prepared by Yoakam.
Konker has an operating lease for several of its large machining tools. The lease term expires in five years, and the annual lease payments are $2 million. The applicable interest rate on the operating lease is 9%.
Yoakam believes that the operating lease should be capitalized and treated as a finance lease. For purposes of adjusting the financial statements, Yoakam believes that the machining tools should be depreciated using straight-line depreciation with a salvage value of $3 million.
At the beginning of 20X8, Konker formed a qualified special purposes entity (QSPE) and sold a portion of its accounts receivables to the QSPE. The total amount of accounts receivables sold to the QSPE was
$13.5 million. Yoakam has noted in his research that the Financial Accounting Standards Board (FASB) is considering the elimination of qualified special purposes entities.
Konker has three major operating divisions: Konker Industrial, Konker Defense, and Konker Capital.
Yoakam has computed the EBIT margin for each division over the last three years as well as the ratio of the percentage of total capital expenditures to the percentage of total assets for each division.
Since Yoakam is concerned about the quality of Konker's earnings, he decides to analyze the accrual ratios using the balance sheet approach. The table below contains the last three years of accrual ratios for Konker and the industry average.
Regarding the three operating divisions of Konker, Yoakam should be most concerned that:
A. the ratio of the Capex percent change to the asset percentage is significantly less than one for the Defense division.
B. the operating ROA of the Capital division has fallen over the last year.
C. Konker is growing the Industrial division over time.
Answer: C
Explanation:
Explanation/Reference:
Explanation:
The fact that Konker is growing the Industrial division most rapidly (highest capex percent to asset percent ratio) is a likely cause for concern and further investigation, since this division has the lowest operating return on assets. The decrease in the operating ROA for the Capital division is not particularly troublesome as it mirrors the pattern for the other divisisions and likely just reflects year-to-year variation in profitability.
The fact that the percent of capex for the Defense division is less than its percent of total assets is not a primary cause for concern since that division has a lower operating ROA, and growth in capital assets likely follows contract awards in the defense industry, rather than drives business. Also, the apparent overinvestment in the Industrial division will decrease the capex percent for other divisions, other things equal. (Study Session 7, LOS 26.b)
NEW QUESTION: 2
Aus dem neuesten Earned Value (EV) -Bericht eines Projekts geht hervor, dass für eine bestimmte Aufgabe eine Schätzung bei Abschluss (EAC) von USS55CL000 und ein Budget bei Abschluss (BAC) von 500.000 US-Dollar vorliegt. Was sollte der Projektmanager mit dieser Aufgabe erleben?
A. Fertigstellung genau im Budget
B. Fertigstellung unter Budget
C. Eine Budgetüberschreitung nach Abschluss
D. Ein Budget, das die Genehmigung des Sponsors benötigt, um fortzufahren
Answer: C
NEW QUESTION: 3
What layer of the OSI/ISO model does Point-to-point tunnelling protocol (PPTP) work at?
A. Data link layer
B. Transport layer
C. Network layer
D. Session layer
Answer: A
Explanation:
PPTP operates at the data link layer (layer 2) of the OSI model and uses native PPP authentication and encryption services. Designed for individual client to server connections, it enables only a single point-to-point connection per session. PPTP - Point-to-Point Tunneling Protocol - extends the Point to Point Protocol (PPP) standard for traditional dial-up networking. PPTP is best suited for the remote access applications of VPNs, but it also supports LAN internetworking.
PPTP operates at Layer 2 of the OSI model. Using PPTP PPTP packages data within PPP packets, then encapsulates the PPP packets within IP packets (datagrams) for transmission through an Internet-based VPN tunnel. PPTP supports data encryption and compression of these packets. PPTP also uses a form of General Routing Encapsulation (GRE) to get data to and from its final destination.
Reference(s) used for this question: KRUTZ, Ronald L. & VINES, Russel D., The CISSP Prep Guide: Mastering the Ten Domains of Computer Security, John Wiley & Sons, 2001, Chapter 3: Telecommunications and Network Security (page 95). and http://compnetworking.about.com/od/vpn/l/aa030103a.htm
and http://technet.microsoft.com/en-us/library/cc768084.aspx
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