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NEW QUESTION: 1
When you copy an asset, the asset text is copied as well. How can you avoid this?
A. By changing the asset class definitions
B. By changing the assigned tab layout
C. By changing the assigned screen layout
D. By creating a dummy reference asset with no text
Answer: C
Explanation:
You define which fields get carried over when an asset is used for reference in the screen layout. This isn't maintained in the tab layout or the asset class. The dummy reference asset isn't a good solution; it's more of a hack workaround, and you wouldn't ever do something like this. Nevertheless, the option would probably be rejected from entering the certification as ambiguous answers are avoided.

NEW QUESTION: 2
At your client site, the Payables period-close processes have been performed. The Payables transfer to GL has been completed, and the resulting journal entries have been posted to GL. The current Payables period has been closed. The Accounts Payable Trial Balance (last day of prior period) + Posted Invoices - Posted Payments equals the Accounts Payable Trial Balance (last day of current period).
However, the balance in the AP liability account in GL for the current period does not equal the Accounts Payable Trial Balance (last day of the current period). What is the possible reason?
A. Inventory has not closed for the current period.
B. Manual journals have been posted to the AP liability account in the current period in GL.
C. Period-end accrual journals have been reversed in GL.
D. Purchasing has not closed for the current period.
Answer: B

NEW QUESTION: 3
Amie Lear, CFA, is a quantitative analyst employed by a brokerage firm. She has been assigned by her supervisor to cover a number of different equity and debt investments. One of the investments is Taylor, Inc. (Taylor), a manufacturer of a wide range of children's toys. Based on her extensive analysis, she determines that her expected return on the stock, given Taylor's risks, is 10%. In applying the capital asset pricing model (CAPM), the result is a 12% rate of return.
For her analysis of the returns of Devon, Inc. (Devon), a manufacturer of high-end sports apparel, Lear intends to use the Fama-French model (FFM). Devon is a small-cap growth stock that has traded at a low market-to-book value in recent years. Lear's analysis has provided a wealth of quantitative information to consider. The return on a value-weighted market index minus the risk-free rate is 5.5%, the small-cap return premium is 3.1%, the value return premium is 2.2%, and the liquidity premium is 3.3%. The risk-free rate is 3.4%. The market, size, relative value, and liquidity betas for Devon are 0.7, -0.3, 1.4, and 1.2, respectively. In estimating the appropriate equity risk premium, Lear has chosen to use the Gordon growth model.
Lear's assistant, Doug Saunders, presents her with a report on macroeconomic multifactor models that includes the following two statements:
Statement 1: Business cycle risk represents the unexpected change in the difference between the return of risky corporate bonds and government bonds.
Statement 2: Confidence risk represents the unexpected change in the level of real business activity.
Lear is also attempting to determine the most appropriate method for determining the required return for Densmore, Inc. (Densmore), a closely held company that is considering a debt issue within the next year.
The company has not previously issued debt securities to the public, relying instead on bank financing.
She realizes that there are a number of models to consider, including the CAPM, multifactor models, and build-up models.
Lear's choice of the Gordon growth model is an example of which of the following types of estimates of the equity risk premium?
A. Macroeconomic model estimate.
B. Historical estimate.
C. Forward-looking estimate.
Answer: C
Explanation:
Explanation/Reference:
Explanation:
The Gordon growth model is a popular method to generate forward-looking estimates using current information and expectations concerning economic and financial variables.
A historical estimate of the equity risk premium consists of the difference between the historical mean return for a broad-based equity market index and a risk-free rate over a given time period.
A macroeconomic model estimate of the equity risk premium is based on the relationships between macroeconomic variables and financial variables. (Study Session 10, LOS 35.b, c, d)