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NEW QUESTION: 1
Jason Bennett is an analyst for Valley Airlines (Valley), a U.S. firm. Valley owns a stake in Southwest Air Cargo (Southwest), also a U.S. firm. The two firms have had a long-standing relationship. The relationship has become even closer because several of Valley's top executives hold seats on Southwest's Board of Directors.
Valley acquired a 45% ownership stake in Southwest on December 31, 2007. Acquisition of the ownership stake cost $9 million and was paid in cash. Valley's stake in Southwest is such that management can account for the investment using either the equity method or the acquisition method. While Valley's management desires to fairly represent the firm's operating results, they have assigned Bennett to assess the impact of each method on reported financial statements.
Immediately prior to the acquisition. Valley's current asset balance and total equity were $96 million and
$80 million, respectively. Southwest's current assets and total equity were $32 million and $16 million, respectively.
While analyzing the use of the equity method versus the acquisition method, Bennett calculates the return on assets (ROA) ratio. He arrives at two conclusions:
Statement 1: Compared to the acquisition method, the equity method results in a higher ROA because of the higher net income under the equity method.
Statement 2: Compared to the acquisition method, the equity method results in a higher ROA because of the smaller level of total assets under the equity method.
In order to get a better picture of Valley's operating condition, Bennett is also considering the use of proportionate consolidation to account for Southwest. He makes the following statements regarding the acquisition method and a proportionate consolidation:
Statement 3: Both methods are widely accepted under the provisions of U.S. GAAP and International Financial Reporting Standards (IFRS).
Statement 4: Both methods report the same level of assets on the parent's balance sheet.
Statement 5: Both methods report all of Southwest's liabilities on the parent's balance sheet.
In addition. Valley has always wanted to pursue its goal of vertical integration by expanding its scope of operations to include the manufacturing of airline parts for its own airplanes. Therefore, it established a subsidiary, Mountain Air Parts (Mountain), in Switzerland on January 1,2008. Switzerland was chosen as the location for economic and geographical diversification reasons. Mountain will operate as a self- contained, independent subsidiary. Local management in Switzerland will make the majority of operating, financing, and investing decisions.
The Swiss franc (CHF) is the official currency in Switzerland. On January 1, 2008, the USD/CHF exchange rate was 0.77. At December 31, 2008, the exchange rate had changed to 0.85 USD/CHF. The average exchange rate in 2008 was 0.80 USD/CHF. In its first year of operations. Mountain paid no dividends and no taxes. Mountain uses the FIFO assumption for its flow of inventory.

Are Bennett's Statements 1 and 2 regarding ROA correct?
Statement 1 ;Statement 2
A. Yes ;Yes
B. Yes ;No
C. No ;Yes
Answer: C
Explanation:
Explanation/Reference:
Explanation:
ROA is calculated as net income / total assets. Both methods result in the same net income, so Statement
1 is incorrect. However, the acquisition method leads to higher reported total assets. Hence, the ROA is greater under the equity method and lower under the acquisition method (Statement 2 is correct). (Study Session 5, LOS 21.b)

NEW QUESTION: 2
You discover that the Large Audience MailTip is not displayed when users compose an email message to the 20 new distribution groups.
You need to ensure that the Large Audience MailTip is displayed for the new distribution groups immediately.
Which cmdlet should you use?
A. Set-ClientAccessServer
B. Start-ManagedFolderAssistant
C. Set-DistributionGroup
D. Set-MailboxServer
Answer: D
Explanation:
We need to use the Set-MailboxServer cmdlet with the ForceGroupMetricsGeneration parameter to force a count of the number of members of the distribution groups.
The ForceGroupMetricsGeneration parameter specifies that group metrics information must be generated on the Mailbox server regardless of whether that server generates an offline address book (OAB). By default, group metrics are generated only on servers that generate OABs. Group metrics information is used by MailTips to inform senders about how many recipients their messages will be sent to. You need to use this parameter if your organization doesn't generate OABs and you want the group metrics data to be available.

NEW QUESTION: 3
Why would we not include an end user's PC device in a QoS trust boundary?
A. The end user could incorrectly tag their traffic to advertise their PC as a default gateway.
B. The end user may incorrectly tag their traffic to be prioritized over other network traffic
C. There is no reason not to include an end user's PC device m a QoS trust boundary
D. The end user could incorrectly tag their traffic to bypass firewalls.
Answer: C

NEW QUESTION: 4
CORRECT TEXT
Fill in the blank with the appropriate word.
______refers to conveying a message from an individual person to another or to several people, whether verbally or non-verbally
Answer:
Explanation:
Communication