CFA Institute CFA Level 2 CFA Level 2 Exam Online Training
CFA Institute CFA Level 2 Online Training
The questions for CFA Level 2 were last updated at Nov 24,2024.
- Exam Code: CFA Level 2
- Exam Name: CFA Level 2 Exam
- Certification Provider: CFA Institute
- Latest update: Nov 24,2024
High Plains’ average net operating assets at the end of 2008 and 2007 was $977.89 million and $642.83 million, respectively.
Does High Plains’ accounting treatment of its capital leases and receivable sale lower its earnings quality?
- A . Both treatments lower earnings quality.
- B . The treatment of capital leases lowers earnings quality.
- C . The treatment of the receivables sale lowers earnings quality.
High Plains’ average net operating assets at the end of 2008 and 2007 was $977.89 million and $642.83 million, respectively.
Does High Plains’ accounting treatment of its capital leases and receivable sale lower its earnings quality?
- A . Both treatments lower earnings quality.
- B . The treatment of capital leases lowers earnings quality.
- C . The treatment of the receivables sale lowers earnings quality.
High Plains’ average net operating assets at the end of 2008 and 2007 was $977.89 million and $642.83 million, respectively.
Does High Plains’ accounting treatment of its capital leases and receivable sale lower its earnings quality?
- A . Both treatments lower earnings quality.
- B . The treatment of capital leases lowers earnings quality.
- C . The treatment of the receivables sale lowers earnings quality.
High Plains’ average net operating assets at the end of 2008 and 2007 was $977.89 million and $642.83 million, respectively.
Does High Plains’ accounting treatment of its capital leases and receivable sale lower its earnings quality?
- A . Both treatments lower earnings quality.
- B . The treatment of capital leases lowers earnings quality.
- C . The treatment of the receivables sale lowers earnings quality.
High Plains’ average net operating assets at the end of 2008 and 2007 was $977.89 million and $642.83 million, respectively.
Which of the following statements about evaluating High Plains financial reporting quality is least accurate?
- A . Higher Plains may have manipulated earnings due to the risk of
- B . High Plains’ extreme revenue growth will likely revert back to normal levels over time.
- C . Because of the estimates involved, a higher weighting should be assigned to the accrual component of High Plains’ earnings as compared to the cash component.
Stanley Bostwick, CFA, is a business services industry analyst with Morton world Financial. Currently, his attention is focused on the 2008 financial statements of Global Oilfield Supply, particularly the footnote disclosures related to the company’s employee benefit plans. Bostwick would like to adjust the financial statements to reflect the actual economic status of the pension plans and analyze the effect on the reported results of changes in assumptions the company used to estimate the projected benefit obligation (PBO) and net pension cost. But first, Bostwick must familiarize himself with the differences in the accounting for defined contribution and defined benefit pension plans.
Global Oilfield’s financial statements are prepared in accordance with International Financial Reporting Standards (IFRS). Excerpts from the company’s annual report are shown in the following exhibits.
If Global Oilfield’s retirement plan is a defined contribution arrangement, which of the following statements would be the most correct?
- A . Pension expense and the cash funding amount would be the same.
- B . The potential gains or losses from the assets contributed to the plan are borne by the firm.
- C . The firm would report the difference in the accumulated benefit obligation and the pension assets on the balance sheet.
Stanley Bostwick, CFA, is a business services industry analyst with Mortonworld Financial. Currently, his attention is focused on the 2008 financial statements of Global Oilfield Supply, particularly the footnote disclosures related to the company’s employee benefit plans. Bostwick would like to adjust the financial statements to reflect the actual economic status of the pension plans and analyze the effect on the reported results of changes in assumptions the company used to estimate the projected benefit obligation (PBO) and net pension cost. But first, Bostwick must familiarize himself with the differences in the accounting for defined contribution and defined benefit pension plans.
Global Oilfield’s financial statements are prepared in accordance with International Financial Reporting Standards (IFRS). Excerpts from the company’s annual report are shown in the following exhibits.
What was the most likely cause of the actuarial gain reported in the reconciliation of the projected benefit obligation for the year ended 2008?
- A . Increase in the average life expectancy of the participating employees.
- B . Decrease in the expected rate of return.
- C . Increase in the discount rate.
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