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NEW QUESTION: 1
Which of the following is the BEST practice to maintain awareness of new technologies?
A. Checking vendor websites and the Internet for updates after encountering issues
B. Periodically checking vendor websites for updated news and software releases
C. Registering for email updates from appropriate vendors, OEMs, and related companies
D. Attending a primary industry trade show annually
Answer: C
NEW QUESTION: 2
Your organization is using Microsoft PPM to manage and track all projects.
The Project Management Office (PMO) needs to know which of the projects are aligned to the organization's strategic objectives.
You need to configure Microsoft PPM to use Portfolio Analyses.
Which two activities should you perform? Each correct answer presents part of the solution.
A. Define business drivers.
B. Set up Project Departments
C. Configure the Full-time Equivalent calculation.
D. Prioritize the drivers by specifying the priority value for each driver.
Answer: B,C
NEW QUESTION: 3
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 I: Employers often face onerous disclosure requirements.
Statement 2: Employers often bear all the investment risk.
Carson is responsible for following Samilski Enterprises (Samilski), a publicly traded firm that produces motorcycles and other mechanical parts. It operates exclusively in the United States. At the end of its 2009 fiscal year, Samilski's employee pension plan had a projected benefit obligation (PBO) of $320 million.
Also, unrecognized prior service costs were $35 million, the fair value of plan assets was $316 million, and the unrecognized actuarial gain was $21 million.
Carson believes the rate of compensation increase will be 5% as opposed to 4% in the previous year, and the discount rate will be 7% as opposed to 8% in the previous year.
This past year, Samilski began using special purpose entities (SPEs) for various reasons. In preparation for analyzing the SPE disclosures in the footnotes to the financial statements, Carson prepares a memo on SPEs. In the memo, he correctly concludes that the company will be required under new accounting rules to classify them as variable interest entities (VIE) and consolidate the entities on the balance sheet rather than report them using the equity method as in the past.
What are the likely effects of the required change in accounting for SPEs on Samilski's:
Return on assets? Return on equity?
A. No effect ;Decrease
B. Decrease ;Decrease
C. Decrease ;No effect
Answer: C
Explanation:
Explanation/Reference:
Explanation:
As a result of consolidating SPEs that were previously accounted for using the equity method, assets will increase but net income and equity won't change. Therefore, return on assets will decrease, but there will be no effect on return on equity. (Study Session 5, LOS 21. c)
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