Exam (elaborations)
series 86 practice exam 1B. questions and and answers verified 2024
- Course
- Institution
series 86 practice exam 1B. questions and and answers verified 2024
[Show more]
Content preview
series 86 practice exam 1BA U.S. manufacturer imports steel from Japan. The company manufactures
the steel into parts and exports them for sale into Japan. The yen has recently
devalued. All of the following items will decrease, EXCEPT:
A Revenue
B Operating expenses
C Operating profit margin
D Cost of goods sold
B Operating expenses
The operating expenses of the company are expressed in U.S. dollars. These
expenses are unaffected by a devaluation of the yen against the dollar. The
cost of goods sold will decrease since the yen has declined in value against
the dollar. The decline of the yen, however, will also decrease the revenue the
company will receive once the yen (received for the sale of the parts) are
converted into U.S. dollars. A portion of the cost of goods sold (machinery and
labor) is payable in U.S. dollars. The devaluation of the yen will not impact this
portion of the cost of goods sold. Since the operating expenses will not be
affected by the currency change and the decrease in the revenue would be a
greater percentage than the percentage decrease in cost of goods sold, the
profit margin will decrease.
,All of the following are leading economic indicators, EXCEPT:
A. New orders for consumer goods and services
B. Manufacturing and trade sales
C The S&P 500 stock index
D. Money suppl
B. Manufacturing and trade sales
Manufacturing and trade sales is a coincident indicator; the others are leading
indicators.
All of the following factors are pertinent when determining fixed-charge
coverage, EXCEPT?
A Interest, whether expensed or capitalized
B Amortization of debt expense
C Rental expense that can be demonstrated to be representative of interest
D. Paid-in capital
, D. Paid-in capital
All of the items are pertinent when determining fixed-charge coverage except
paid-in capital. Furthermore, the ratio of earnings-to-fixed charges uses pretax
earnings from continuing operations plus the full amount of losses of majority-
owned subsidiaries, provided the debt of the subsidiary is guaranteed by the
parent.
Relevant financial information to answer the following question is found by
using Exhibit 1, Exhibit 2, Exhibit 3, and Exhibit 4. (Clicking each link will open
that exhibit into a new window).
What can an analyst project from these four exhibits?
A Hospital spending is highly correlated with drug spending
B There is no correlation between prescription drugs sales and overall
healthcare expenditures
C. Prescription drugs should continue to grow, but at a slower rate
D Generic prescriptions should decline as a percentage of prescription sales
C. Prescription drugs should continue to grow, but at a slower rate
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller LEWISSHAWN55. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $13.49. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
77858 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now