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NEW QUESTION: 1
Bryan Stephenson is an equity analyst and is developing a research report on Iberia Corporation at the request of his supervisor. Iberia is a conglomerate entity with significant corporate holdings in various industries. Specifically, Stephenson is interested in the effects of Iberia's investments on its financial performance and has decided to focus on two investments: Midland Incorporated and Odessa Company.
Midland Incorporated
On December 31, 2007, Iberia purchased 5 million common shares of Midland Incorporated for €80 million. Midland has a total of 12.5 million common shares outstanding. The market value of Iberia's investment in Midland was €89 million at the end of 2008 and €85 million at the end of 2009. For the year ended 2008, Midland reported net income of €30 million and paid dividends of €10 million. For the year ended 2009, Midland reported a loss of €5 million and paid dividends of €4 million.
During 2010, Midland sold goods to Iberia and reported 20% gross profit from the sale. Iberia sold all of the goods to a third party in 2010.
Odessa Company
On January 2, 2009, Iberia purchased 1 million common shares of Odessa Company as a long-term investment. The purchase price was €20 per share and on December 31, 2009, the market price of Odessa was €17 per share. The decline in value was considered temporary. For the year ended 2009, Odessa reported net income of €750 million and paid a dividend of €3 per share. Iberia considers its investment in Odessa as an investment in financial assets.
In addition, Iberia has a number of foreign investments, so Stephenson's supervisor has asked him to draft a report on accounting methods and ratio analysis. The following are statements from Stephenson's research report.
Statement 1: Under U.S. GAAP, firms are required to use proportionate consolidation to account for joint ventures.
Statement 2: In general, if the parent's consolidated net income is positive, the equity method reports a higher net profit margin than the acquisition method.
Is Stephenson's statement regarding the effect on profit margin correct?
A. No. Net profit margin will be lower using the equity method.
B. Yes.
C. No. Net profit margin will be the same using either the equity method or the acquisition method.
Answer: B
Explanation:
Explanation/Reference:
Explanation:
In a profitable year, net profit margin (net income/sales) will be higher under the equity method because sales are lower under the equity method. Acquisition includes the sales figures for both the parent and subsidiary while the equity method only includes the sales figure for the parent company. Net income is the same under both methods. Therefore, the statement is correct. (Study Session 5, LOS 21.c)

NEW QUESTION: 2
Your company hosts a web application in Azure. The company uses Azure Pipelines for the build and release management of the application.
Stakeholders report that the past few releases have negatively affected system performance.
You configure alerts in Azure Monitor.
You need to ensure that new releases are only deployed to production if the releases meet defined performance baseline criteria in the staging environment first
What should you use to prevent the deployment of releases that fail to meet the performance baseline?
A. an Azure Scheduler job
B. a gate
C. an Azure function
D. a trigger
Answer: B

NEW QUESTION: 3
Which describes an off-specification?
A. The production of more than the defined quantity of a specialist product
B. A prototype demonstrating a possible design solution
C. The addition of an improvement to a product description
D. An interdependency between products that was previously unidentified
E. That the right people are involved in appropriate roles
Answer: D
Explanation:
Explanation
Reference https://www.prince2primer.com/prince2-change-control/

NEW QUESTION: 4
Which option describes how a VTPv3 device responds when it detects a VTPv2 device on a trunk port?
A. It sends VTPv3 packets only.
B. It sends VTPv3 and VTPv2 packets.
C. It sends VTPv2 packets only.
D. It sends a special packet that contains VTPv3 and VTPv2 packet information.
Answer: B
Explanation:
When a VTP version 3 device on a trunk port receives messages from a VTP version 2 device, the VTP version 3 device
sends a scaled-down version of the VLAN database on that particular trunk in a VTP version 2 format. A VTP version 3
device does not send out VTP version 2-formatted packets on a trunk port unless it first receives VTP version 2 packets
on that trunk. If the VTP version 3 device does not receive VTP version 2 packets for an interval of time on the trunk
port, the VTP version 3 device stops transmitting VTP version 2 packets on that trunk port.
Even when a VTP version 3 device detects a VTP version 2 device on a trunk port, the VTP version 3 device continues
to send VTP version 3 packets in addition to VTP version 3 device 2 packets, to allow two kinds of neighbors to coexist
on the trunk. VTP version 3 sends VTP version 3 and VTP version 2 updates on VTP version 2-detected trunks.
Reference: http://www.cisco.com/c/en/us/td/docs/switches/lan/catalyst6500/ios/12-
2SX/configuration/guide/book/vtp.html