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What is the most likely effect of High Plains' revenue recognition policy on net income and inventory turnover?
High Plains' average net operating assets at the end of 2008 and 2007 was $977.89 million and $642.83 million, respectively. What is the most likely effect of High Plains' revenue recognition policy on net income and inventory turnover?A . Net income and inventory turnover are overstated.B . Only net income...
Does High Plains' accounting treatment of its capital leases and receivable sale lower its 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...
Which of the following is most likely consistent with CFA Institute Standards of Professional Conduct?
Susan Foley, CFA, is Chief Investment Officer of Federated Investment Management Co. (FIMCO), a large investment management firm that includes a family of mutual funds as well as individually managed accounts. The individually managed accounts include individuals, personal trusts, and employee benefit plans. In the past few months, Foley has...
Which of the following is least likely to prevent earnings manipulation?
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 is least likely to prevent earnings manipulation?A . The independent audit.B . SEC certification filed by High Plains' CEO and CFD . High Plains' bond covenants.View...
Which of the following statements is most accurate with regard to Ryan's taking the out of date version of the SelectStock software?
Susan Foley, CFA, is Chief Investment Officer of Federated Investment Management Co. (FIMCO), a large investment management firm that includes a family of mutual funds as well as individually managed accounts. The individually managed accounts include individuals, personal trusts, and employee benefit plans. In the past few months, Foley has...
Charles Connor, CFA, is a portfolio manager at Apple Investments, LLC. Apple is a U.S.-based firm offering a wide spectrum of investment products and services. Connor manages the Biogene Fund, a domestic equity fund specializing in small capitalization growth stocks. The Biogene Fund generally takes significant positions in stocks, commonly owning 4.5-5% of the outstanding shares. The fund's prospectus limits positions to a maximum of 5% of the shares outstanding. The performance of the Biogene Fund has been superior over the last few years, but for the last two quarters the fund has underperformed its benchmark by a wide margin. Connor is determined to improve his performance numbers going forward.
Charles Connor, CFA, is a portfolio manager at Apple Investments, LLC. Apple is a U.S.-based firm offering a wide spectrum of investment products and services. Connor manages the Biogene Fund, a domestic equity fund specializing in small capitalization growth stocks. The Biogene Fund generally takes significant positions in stocks, commonly...
PBO? Pension expense?
Andrew Carson is an equity analyst employed at Lee, Vincent, and Associates, an investment research firm. In a conversation with his supervisor, Daniel Lau, Carson makes the following two statements about defined contribution plans. Statement 1: Employers often face onerous disclosure requirements. Statement 2: Employers often bear all the investment...
According to CFA Institute Research Objectivity Standards (ROS), which of the following statements is most accurate with regard to the rating system used by Holly in his investment report on BlueNote Inc.?
Pat Wilson, CFA, is the chief compliance officer for Excess Investments, a global asset management and investment banking services company. Wilson is reviewing two investment reports written by Peter Holly, CFA, an analyst and portfolio manager who has worked for Excess for four years. Holly's first report under compliance review...
Chester Brothers, LLC, is an investment management firm with $200 million in assets under management. Chester's equity style is described to clients as a "large cap core" strategy. One year ago, Chester instituted a new compensation plan for its equity portfolio managers. Under this new plan, each portfolio manager receives an annual bonus based upon that manager's quarterly performance relative to the S&P 500 index. For each quarter of aut-performance, the manager receives a bonus in the amount of 20% of his regular annual compensation. Chester has not disclosed this new plan to clients. Portfolio managers at Chester are not bound by non-compete agreements.
Chester Brothers, LLC, is an investment management firm with $200 million in assets under management. Chester's equity style is described to clients as a "large cap core" strategy. One year ago, Chester instituted a new compensation plan for its equity portfolio managers. Under this new plan, each portfolio manager receives...
PBO? Pension expense?
Andrew Carson is an equity analyst employed at Lee, Vincent, and Associates, an investment research firm. In a conversation with his supervisor, Daniel Lau, Carson makes the following two statements about defined contribution plans. Statement 1: Employers often face onerous disclosure requirements. Statement 2: Employers often bear all the investment...
