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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.

Based on the financial results of Adams and Jefferson in 2007 and 2008, the company demonstrating the lower earnings quality would be:
A. Jefferson due to sharply higher accruals ratios and less conservative accounting methods indicated by the change in depreciation policies and the impact of changes in shipment terms on revenue recognition and inventories for the special overseas offer.
B. Adams due to slower revenue growth, higher expense growth compared to Jefferson, possible inventory obsolescence related to higher 2008 inventories despite slowing customer demand, and lower balance sheet and cash flow based accrual ratios in 2008 compared to Jefferson.
C. Adams due to lower cash collection measures, possible inventory obsolescence related to higher 2008 inventories despite slowing customer demand, higher expense growth compared to Jefferson, and lower balance sheet and cash flow accrual ratios relative to Jefferson.
Answer: A
Explanation:
Explanation/Reference:
Explanation:
According to the simple measures of earnings quality, balance sheer and cash flew accruals ratios, Jefferson's earnings quality in 2008 was lower than its 2007 levels and relative to Adams. The more aggressive accounting treatment for the overseas special offer lowered the quality of revenues and may have understated inventories if some oF these customers don't take deliver)' of the shipments. Jefferson also instituted a more liberal policy toward depreciable lives versus Adams, another indicator of lower earnings quality. (Study Session 7, LOS 25.d,f)

NEW QUESTION: 2
Which of the following measures is used to show the ratio of defects to units?
A. DPMO
B. PPM
C. DPU
D. DPO
Answer: C

NEW QUESTION: 3
Your company has a main office in Australia and several branch offices in Asia.
The company's data center uses a VMware virtualization infrastructure to host several virtualized servers.
You purchase an Azure subscription and plan to move all virtual machines to Azure to a resource group in the Australia Southeast location.
You need to create an Azure Migrate migration project.
Which geography should you select?
A. Australia Southeast
B. United States
C. Central India
D. Australia Central
Answer: B
Explanation:
References:
https://docs.microsoft.com/en-us/azure/migrate/migrate-overview

NEW QUESTION: 4
Scenario: A Citrix Architect needs to design a multi-datacenter XenApp and XenDesktop environment that will use Provisioning Services (PVS) to manage Virtual Delivery Agent (VDA) machine images. Each datacenter will have a separate Provisioning Services farm. During the design discussions, the architect creates a diagram to depict the way vDisk files will be replicated between PVS farms, based on the available storage for the vDisk Stores.
Click the Exhibit button to view the diagram.

Overall, the customer has identified the following objectives for the image replication process:
* Minimize the administrative time required to replicate images between farms
* Must be usable by storage administrators without PVS farm administrative permissions
* Utilize pre-existing infrastructure and processes where possible
Which method should the architect use to replicate the vDisk files between datacenters?
A. Scheduled robocopy commands
B. SAN replication
C. Manual copy
D. vDisk Replicator Tool
E. Microsoft DFS-R
Answer: D