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NEW QUESTION: 1
Delicious Candy Company (Delicious) is a leading manufacturer and distributor of quality confectionery products throughout Europe and Mexico. Delicious is a publicly-traded firm located in Italy and has been in business over 60 years.
Caleb Scott, an equity analyst with a large pension fund, has been asked to complete a comprehensive analysis of Delicious in order to evaluate the possibility of a future investment.
Scott compiles the selected financial data found in Exhibit 1 and learns that Delicious owns a 30% equity interest in a supplier located in the United States. Delicious uses the equity method to account for its investment in the U.S. associate.

Scott reads the Delicious's revenue recognition footnote found in Exhibit 2.
Exhibit 2: Revenue Recognition Footnote
__________________________________________________________________________________ in millions__________________________________________________________________________ Revenue is recognized, net of returns and allowances, when the goods are shipped to customers and collectability is assured. Several customers remit payment before delivery in order to receive additional discounts. Delicious reports these amounts as unearned revenue until the goods are shipped. Unearned revenue was €7,201 at the end of 2009 and €5,514 at the end of 2008.
Delicious operates two geographic segments: Europe and Mexico. Selected financial information for each segment is found in Exhibit 3.

At the beginning of 2009, Delicious entered into an operating lease for manufacturing equipment. At inception, the present value of the lease payments, discounted at an interest rate of 10%, was 6300 million. The lease term is six years and the annual payment is 669 million. Similar equipment owned by Delicious is depreciated using the straight-line method and no residual values are assumed.
Scott gathers the information in Exhibit 4 to determine the implied "stand-alone" value of Delicious without regard to the value of its U.S. associate.

Using the data found in Exhibit 1 and Exhibit 2, which of the following best describes the impact on Delicious's financial leverage in 2009 as compared to 2008?
A. Financial leverage increased, and the true nature of the leverage increased.
B. Financial leverage and the true nature of the leverage were unchanged.
C. Financial leverage increased, but the true nature of the leverage decreased.
Answer: C
Explanation:
Explanation/Reference:
Explanation:
Delicious's financial leverage ratio was 1.8 (54,753 average assets / 29,983 average equity) for 2009 and was 1.7 for 2008 (49,354 average assets / 28,738 average equity). Although leverage was higher, the nature of the true leverage was lower. This is because the increasing customer advances (unearned revenue) will not require an outflow of cash in the future and are, thus, less onerous than Delicious's other liabilities. (Study Session 7, LOS 26.b)

NEW QUESTION: 2
HOTSPOT
Your network contains an Active Directory domain named contoso.com. The domain contains a server named Server1 that runs Windows Server 2012 R2. Server1 has the Active Directory Federation Services (AD FS) server role installed.
Adatum.com is a partner organization.
You are helping the administrator of adatum.com set up a federated trust between adatum.com and contoso.com. The administrator of adatum.com asks you to provide a file
containing the federation metadata of contoso.com.
You need to identify the location of the federation metadata file. Which node in the AD FS
console should you select?
To answer, select the appropriate node in the answer area.

Answer:
Explanation:

NEW QUESTION: 3
What is required when setting up SSL communications with LDAP?
A. The LDAP server's public and private key.
B. The LDAP server's private key.
C. The LDAP server's public key stash file.
D. TheLDAP server's CA signer certificate.
Answer: D

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