[单项选择]Which of the following situations will most likely require a company to record a valuation allowance on its balance sheet（）
A. To report depreciation, a firm uses the double-declining balance method for tax purposes and the straight-line method for financial reporting purposes. 
B. A firm with deferred tax assets expects an increase in the tax rate. 
C. A firm is unlikely to have future taxable income that would enable it to take advantage of deferred tax assets.

[单项选择]Which of the following situations is most closely analogous to the situation described by the author as a tremendous irony
A. That of restaurant customers whose food has not arrived because the manager forgot to oversee its preparation.
B. That of a highway maintenance crew who cannot reach a pothole they must fix because the highway is congested with traffic from the pothole.
C. That of a man who saves his excess income in a bank account, only to find out the bank has charged fees so high that he has less money than when he began.
D. That of an unknown artist who dies just weeks before being recognized in an exhibition.
E. That of scientists trying to find a means of traveling at the speed of light, but find that their innovations can only asymptotically approach the speed, but never reach it.

[单项选择]Which of the following situations is least likely to lead to high barriers to entry and monopoly supply（）
A. Natural resources are spread among many firms.
B. Governmental licensing and regulations are present.
C. Economies of scale are present.

[单项选择]Which of the following distribution is most likely a discrete distribution（）
A. A normal distribution.
B. A binomial distribution.
C. A univariate distribution.

[单项选择]Which of the following situations is more likely to predispose a client to postpartum hemorrhage
A. Birth of a 7 lb (3,175g) infant.
B. Prolonged first stage of labor.
C. Pregnancy-induced hypertension (PIH).
D. Birth of twins.

[单项选择]Which of the following statements is most likely to characterize the principal-agent problem between buyers and sellers of services（）
A. Principals can impose their own objectives on agents.
B. Principals can have complete information about agent behavior.
C. Agents cannot be completely monitored.

[单项选择]Which of the following strategies is most likely to be considered good payables management（）
A. Paying trade invoices on the day they arrive.
B. Paying invoices on the last possible day to still get the supplier’s discount for early payment.
C. Taking trade discounts only if the firm’s annual return on short-term investments is less than the discount percentage.

[单项选择]Which of the following firms is most likely to have a board of directors that considers the best interest of all shareholders（）
A. Firms that assign a single vote to each share, but not firms with different classes of common equity with supermajority rights given to one class.
B. Firms that assign a single vote to each share, and firms with different classes of common equity with supermajority rights given to one class.
C. Firms with different classes of common equity with supermajority rights given to one class, but not firms that assign a single vote to each share.

[单项选择]Which of the following are most likely recognized as cash flows for capital budgeting purposes（）
A. Sunk costs.
B. Financing costs.
C. Opportunity costs.

[单项选择]Which of the following are most likely handled prospectively, with the change affecting the financial statements for the period of change and future period（）
A. Changes in accounting policies.
B. Changes in accounting estimates.
C. Correction of an error for a prior period.

[单项选择]Which of the following is most likely a recommended procedure for compliance with the Standards of Professional Conduct relating to loyalty, prudence, and care Members should:
A. make their clients aware of all forms of manager compensation.
B. seek best execution for their clients in any circumstance.
C. diversify investments to reduce the risk of loss in any circumstance.

[单项选择]Which of the following is most likely to concern an investor evaluating a corporation’s shareowner rights provisions（）
A. Shareowners may nominate board members.
B. Shares held by the founding family have supernormal voting rights.
C. To ensure accuracy, company executives tabulate and verify shareowner voting.

[单项选择]Which of the following will most likely lead to cost-push inflation（）
A. A decrease in the cost of financing.
B. An increase in the prices of raw materials.
C. A technology change that lowers production costs.

[单项选择]Which of the following is most likely to cause the short-run aggregate supply shift to the right（）
A. An increase in nominal wages.
B. A decrease in government subsidies.
C. Appreciation of domestic currency.

[单项选择]Which of the following is most likely under a company's management control
A. Operating risk.
B. Financial risk.
C. Systematic risk.

[单项选择]Which of the following is most likely to include detailed information on a company's revenue recognition（）
A. The auditor's report.
B. The cash flow statement.
C. The financial notes and supplementary schedule.

[单项选择]Which of the following is most likely related to the change in polarity principle（）
A. Volatility.
B. Price.
C. Volume.

[单项选择]Which of the following is the man most likely to do in Italy
A. Drawing pictures.
B. Attending an art school.
C. Visiting art galleries.
D. Lying on the beach.

[单项选择]Which of the following statements is most accurate regarding a firm’s cost of preferred shares A firm’s cost of preferred stock is:（）
A. the market price of the preferred shares as a percentage of its issuance price.
B. the dividend yield on the firm’s newly-issued preferred stock.
C. approximately equal to the market price of the firm’s debt as a percentage of the market price of its common shares.