1、The diagram below shows the domestic demand and supply curves for a country that imports a commodity, where PW is the commodity’s world price and PT is its domestic price after the imposition of a tariff.

　　The gain in government revenues arising from the imposition of the tariff is best described by area(s):

　　A. J.

　　B. L.

　　C. K + M.
 

　　2、The following data are available on a company:

　　The least likely explanation for the change in the cash conversion cycle is that the firm improved on its:

　　A. payments to suppliers.

　　B. inventory management.

　　C. ability to collect from customers.
 

　　3、An e‐commerce company sells hotel room nights on its website under agreement from a large number of major hotel chains. The hotel chains grant the company flexibility for the rooms they supply to the company’s website and for the prices charged. These major chains bear the responsibility for providing all services once a customer books a room from the website. During 2011, the company received $5 million in payments from the sale of hotel rooms. The cost of these rooms was $4.5 million, which does not include $250,000 in direct selling costs. Under U.S. GAAP, the company’s cost of sales is closest to:

　　A. $250,000.

　　B. $4,500,000.

　　C. $4,750,000.
 

　　4、The following information is available about a company with potentially dilutive securities in its capital structure:

　　1）2011 net income of $32 million.

　　2）Weighted average number of common shares outstanding of 4.5 million.

　　3）$15 million of 12% convertible bonds, convertible into 50,000 shares.

　　4）200,000 options with an exercise price of $50 per share.

　　5）A verage market price of $80 per share during the fiscal year.

　　6）Tax rate of 30%.

　　The company’s diluted EPS is closest to:

　　A. $6.99.

　　B. $7.19.

　　C. $7.31.
 

　　5、Which of the following statements about the direct method for presenting cash from operating activities is most appropriate? The direct method:

　　A.shows the impact of accruals.

　　B.shows the reasons for differences between net income and operating cash flows.

　　C. provides information on the specific sources of operating cash receipts and payments.
 

　　6、Interest payable decreased during a company’s fiscal year. Compared with the amount of cash interest payments made, interest expense is most likely:

　　A. lower.

　　B. higher.

　　C. the same.
 

　　7、Unused tax losses and credits that a company expects to use in future periods will most likely give rise to:

　　A. deferred tax assets.

　　B. valuation allowances.

　　C. deferred tax liabilities.