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NEW QUESTION: 1
William Jones, CFA, is analyzing the financial performance of two U.S. competitors in connection with a potential investment recommendation of their common stocks. He is particularly concerned about the quality of each company's financial results in 2007-2008 and in developing projections for 2009 and 2010 fiscal years.
Adams Company has been the largest company in the industry but Jefferson Inc. has grown more rapidly in recent years. Adams's net sales in 2004 were 33-1/3% higher than Jefferson but were only 18% above Jefferson in 2008. During 2008, a slowing U.S. economy led to lower domestic revenue growth for both companies. The 10-k reports showed overall sales growth of 6% for Adams in 2008 compared to 7% for
2007 and 9% in 2006. Jefferson's gross sales rose almost 12% in 2008 versus 8% in 2007 and 10% in
2006. In the past three years, Jefferson has expanded its foreign business at a faster pace than Adams. In
2008, Jefferson's growth in overseas business was particularly impressive. According to the company's 10- k report, Jefferson offered a sales incentive to overseas customers. For those customers accepting the special sales discount, Jefferson shipped products to specific warehouses in foreign ports rather than directly to those customers' facilities.
In his initial review of Adams's and Jefferson's financial statements, Jones was concerned about the quality of the growth in Jefferson's sales, considerably higher accounts receivables, and the impact of overall accruals on earnings quality. He noted that Jefferson had instituted an accounting change in 2008. The economic life for new plant and equipment investments was determined to be five years longer than for previous investments. For Adams, he noted that the higher level of inventories at the end of 2008 might be cause for concern in light of a further slowdown expected in the U.S. economy in 2009.
The accompanying table shows financial data for both companies' Form 10-k reports for 2006-2008 used by Jones for his analysis. To evaluate sales quality, he focused on trends in sales and related expenses for both companies as well as cash collections and receivables comparisons. Inventory trends relative to sales and the number of days' sales outstanding in inventory were determined for both companies. Expense trends were examined for Adams and Jefferson relative to sales growth and accrual ratios on a balance sheet and cash flow basis were developed as overall measures of earnings quality.

Jones also observed that inventory 3nd cost of goods sold comparisons showed:
A. Jefferson's inventory decline suggests possible problems in inventory management to meet the stronger customer demand from the special offer; Adams's large inventory increase suggests better inventory management to meet future sales growth.
B. Jefferson's inventory decline and large increase in cost of goods sold may be related to the success of the special offer; Adams's large increase in inventories suggests possible inventory obsolescence.
C. Jefferson's inventory levels may be understated and sales overstated to the extent of product shipments for the special offer; Adams inventory increase may reflect slowing product demand and possible inventory obsolescence.
Answer: C
Explanation:
Explanation/Reference:
Explanation:
Jefferson's revenue and inventor)' levels may be distorted by revenue recognition for new business from ihc special offer. Although the customers agreed to delay delivery of ihe products, recognition of these sales prior to customer delivery lowers the quality of these sales and understates inventory. Inventory is understated if the sale is not totally complete. (Study Session 7, LOS 25.f)

NEW QUESTION: 2

A. Option C
B. Option A
C. Option D
D. Option B
Answer: A

NEW QUESTION: 3
Refer to the exhibit.

A customer has a three-site configuration, where Site-A is running critical production applications, Site-B receives data from Site-A in SRDF/S mode and is used exclusively for disaster recovery. Site-C is a new location designed to receive data from Site-B using Cascaded SRDF. During the initial establish of data between Site-B and Site-C, significant performance issues were encountered at Site-A. What action should be taken to improve Site-A performance?
A. Use separate RF-ports between Site-B and Site-C
B. Use SRDF/acp_dsk mode from Site-A to Site-B
C. Use SRDF/S mode from Site-B to Site-C
D. Use different RF-ports on Site-C
Answer: A

NEW QUESTION: 4
Your network contains one Active Directory domain named contoso.com. The domain contains 10 domain controllers and a read-only domain controller (RODC) named RODC01.
You need to add an RODC to the domain by using the Install From Media (IFM) option.
Which tool should you use to create the media?
A. the Install-ADDSDomain cmdlet
B. the Set-ADForest cmdlet
C. the dsamain command
D. the Set-ADDomain cmdlet
E. the ntdsutil command
F. the net user command
G. the dsadd command
H. the dsmgmt command
Answer: E
Explanation:
Explanation
You can use the Ntdsutil.exe tool to create installation media for additional domain controllers that you are creating in a domain. By using the Install from Media (IFM) option, you can minimize the replication of directory data over the network. This helps you install additional domain controllers in remote sites more efficiently.
Reference: Installing AD DS from Media
https://technet.microsoft.com/en-us/library/cc770654(v=ws.10).aspx