[单选题]

David Smith, CFA, suspects that a particular company's interest coverage ratio may be overstated compared to that of other companies in the same industry and therefore requires additional adjustment. If the company is a lessee and meanwhile inventory prices and quantities have been decreasing, the accounting methods used for new lease commitments and inventory valuation respectively that are most likely to have overstated the interest coverage ratio are:
New lease commitments   Inventory valuation

A.Capital leases      LIFO

B.Operating leases     FIFO

C.Operating leases     LIFO

参考答案与解析:

相关试题

An analyst suspects that a particular company's financial statements may require adjustment bec

[单选题]An analyst suspects that a particular company's financial statements may re

  • 查看答案
  • A company's asset beta is 2 based on a debt-to-equity ratio of 50%. If the company's tax r

    [单选题]A company's asset beta is 2 based on a debt-to-equity ratio of 50%. If the

  • 查看答案
  • A company's quick ratio is 2. If inventory were purchased for cash, the:

    [单选题]A company's quick ratio is 2. If inventory were purchased for cash, the:A.N

  • 查看答案
  • An analyst has tested LIFO and FIFO inventory method's impact to a company's ratio and gat

    [单选题]An analyst has tested LIFO and FIFO inventory method's impact to a company'

  • 查看答案
  • Given the following information on a company's capital structure, what is the company's we

    [单选题]Given the following information on a company's capital structure, what is t

  • 查看答案
  • On 1 January 2011 the market rate of interest on a company's bonds is 5% and it issues a bond w

    [单选题]On 1 January 2011 the market rate of interest on a company's bonds is 5% an

  • 查看答案
  • Interest payable decreased during a company's fiscal year. Compared with the amount of cash int

    [单选题]Interest payable decreased during a company's fiscal year. Compared with th

  • 查看答案
  • A company's current ratio is 9. If some of the accounts payable are paid off from the cash acco

    [单选题]A company's current ratio is 9. If some of the accounts payable are paid of

  • 查看答案
  • Smith Company's earnings per share are more sensitive to changes in operating income than are t

    [单选题]Smith Company's earnings per share are more sensitive to changes in operati

  • 查看答案
  • A company's $100, 8% preferred is currently selling for $85. What is the company's cost of

    [单选题]A company's $100, 8% preferred is currently selling for $85. What is the co

  • 查看答案
  • David Smith, CFA, suspects that a particular company's interest coverage ratio may be overstate