1. A bookstore earned USD200,000 over the past year. At a tax rate of 40%, that bookstore incurs an income tax expense of USD80,000. Under which of the following accounting systems would the expense typically be categorized as an operating activity?

I. IFRS
II. U.S. GAAP

2. Joyce Price issues weekly investment reports. Joyce looks for trends and commonalities within the research community. She then presents the findings as her own research and doesn’t cite any sources. Joyce gives them to her boss, Soojung Yu, CFA. Soojung peer-reviews the reports and does not mention anything about citing sources.

Has Soojung most likely violated the Standards?

3. Given the following data, determine the cash flow from operations:

Sales = USD2,100m
Increase in inventory = USD200m
Depreciation = USD125m
Increase in accounts receivable = USD75m
Decrease in accounts payable = USD70m
After tax profit margin = 35%
Gain on sale of machinery = USD30m

4. If you were to finance a $25,000 car purchase with a 6 year, 5% compounded monthly loan, your monthly payments will be closest to:

5. Medialink is an American company specializing in business intelligence consulting. One of Medialink’s current project is a 2-year commitment with Isotics, with a total estimated revenue of USD2.0 million and estimated cost of USD1.0 million. Costs are expected to be spread out evenly over each month.

After the first month, under IFRS, Medialink’s recognized revenue is expected to be closest to: