C214OA 2023 / NEWEST 2024 ACTUAL
EXAM QUESTIONS AND CORRECT
DETAILED ANSWERS WITH
RATIONALES (VERIFIED ANSWERS)
|ALREADY GRADED A+
• Thestockpriceofacompanyincreasesandthemarket
isdeemedefficient. Whatassumptioncanbemade?A. Anew,
patented, product wasintroducedtothemarket.
B. Newmachinerywaspurchasedwithauseful lifeof 20years.
C. Managementisoptimizingitsresourcesandoperatingefficie
ntly.
D. Management
hirednewemployeesandinvestedinatrainingprogram.
• Whichstatement istrueabout howtheglobal market affectstheU.S.
, A. AbadoptionstradeexecutedbyaforeignsubsidiaryofaWall Street
bankwill affectlayoffsoverseas.
B. ABadderivativestradeexecutedbyaforeignsubsidiaryof aWall
Street bankwill affectlayoffsoverseas.
C. Americaninvestorsandfundmanagersmakedecisionsbasedonfin
ancial reportingstandardsdevelopedandfinancial statements
auditedoverseas.
D. Foreigninvestorsandfundmanagersmakedecisionsbasedonfina
ncial reportingstandardsdevelopedandfinancial statements
auditedoverseas.
• Whataresecondarymarkets?
A. Marketswheresecuritiesaretradedsubsequenttotheinitial offering.
B. Marketsweresecuritiesareissuedforthefirst time.
C. Marketsweresecuritiesareissuedthroughacompetitivesal
e.
D. Marketswheresecuritiesareissuedthroughanegotiatedsal
e.
• Aspecial interest group in the U.S. has been lobbying intensely for
protectionismthrough increased tariffsandtrade restrictions, with
theargument thatit will savejobsintheindustrytheyrepresent. What
isthemost likelyresult if they aresuccessful?
A. Employeesandshareholdersof
thedomesticindustrythatproducetheprotectivegoodswill
, behurtandthenationwill benefit.
B. Theoverall economywill benefit fromtraderestrictionsandtariffs.
C. Removingthetraderestrictionsandtariffswill resultinanet
economiclosstotheoverall U.S. economy.
D. Employeesandshareholdersof thedomesticindustrythat
producetheprotectedgoodswill benefit andthenationwill behurt.
• What dothecontent andstructureofabalancesheetreport?
Theassets, liabilities, andequity atapoint intime
• What isthebasisusedtocomputeacompany'sincometaxexpense?
A. Pretaxaccountingincome.
B. Taxableincome.
C. Netoperati
ngincome.D.
Taxespaya
ble.
• What isthefirm’scashflowfromfinancing, usingthedataabove?
, Net Income $10
00
DepreciationE $30
xpense 0
Changeinoper $60
atingassets 0
Changeinnet $50
PP&E 00
Changeinlong-termLiabilities $1000
EXAM QUESTIONS AND CORRECT
DETAILED ANSWERS WITH
RATIONALES (VERIFIED ANSWERS)
|ALREADY GRADED A+
• Thestockpriceofacompanyincreasesandthemarket
isdeemedefficient. Whatassumptioncanbemade?A. Anew,
patented, product wasintroducedtothemarket.
B. Newmachinerywaspurchasedwithauseful lifeof 20years.
C. Managementisoptimizingitsresourcesandoperatingefficie
ntly.
D. Management
hirednewemployeesandinvestedinatrainingprogram.
• Whichstatement istrueabout howtheglobal market affectstheU.S.
, A. AbadoptionstradeexecutedbyaforeignsubsidiaryofaWall Street
bankwill affectlayoffsoverseas.
B. ABadderivativestradeexecutedbyaforeignsubsidiaryof aWall
Street bankwill affectlayoffsoverseas.
C. Americaninvestorsandfundmanagersmakedecisionsbasedonfin
ancial reportingstandardsdevelopedandfinancial statements
auditedoverseas.
D. Foreigninvestorsandfundmanagersmakedecisionsbasedonfina
ncial reportingstandardsdevelopedandfinancial statements
auditedoverseas.
• Whataresecondarymarkets?
A. Marketswheresecuritiesaretradedsubsequenttotheinitial offering.
B. Marketsweresecuritiesareissuedforthefirst time.
C. Marketsweresecuritiesareissuedthroughacompetitivesal
e.
D. Marketswheresecuritiesareissuedthroughanegotiatedsal
e.
• Aspecial interest group in the U.S. has been lobbying intensely for
protectionismthrough increased tariffsandtrade restrictions, with
theargument thatit will savejobsintheindustrytheyrepresent. What
isthemost likelyresult if they aresuccessful?
A. Employeesandshareholdersof
thedomesticindustrythatproducetheprotectivegoodswill
, behurtandthenationwill benefit.
B. Theoverall economywill benefit fromtraderestrictionsandtariffs.
C. Removingthetraderestrictionsandtariffswill resultinanet
economiclosstotheoverall U.S. economy.
D. Employeesandshareholdersof thedomesticindustrythat
producetheprotectedgoodswill benefit andthenationwill behurt.
• What dothecontent andstructureofabalancesheetreport?
Theassets, liabilities, andequity atapoint intime
• What isthebasisusedtocomputeacompany'sincometaxexpense?
A. Pretaxaccountingincome.
B. Taxableincome.
C. Netoperati
ngincome.D.
Taxespaya
ble.
• What isthefirm’scashflowfromfinancing, usingthedataabove?
, Net Income $10
00
DepreciationE $30
xpense 0
Changeinoper $60
atingassets 0
Changeinnet $50
PP&E 00
Changeinlong-termLiabilities $1000
