CDCS-001 Practice Questions

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NEW QUESTION: 1
Viper Motor Company, a publicly traded automobile manufacturer located in Detroit, Michigan, periodically invests its excess cash in low-risk fixed income securities. At the end of 2009, Viper's investment portfolio consisted of two separate bond investments: Pinto Corporation and Vega Incorporated.
On January 2, 2009, Viper purchased $10 million of Pinto's 4% annual coupon bonds at 92% of par. The bonds were priced to yield 5%. Viper intends to hold the bonds to maturity. At the end of 2009, the bonds had a fair value of $9.6 million.
On July I, 2009, Viper purchased $7 million of Vega's 5% semi-annual coupon mortgage bonds at par. The bonds mature in 20 years. At the end of 2009, the market rate of interest for similar bonds was 4%. Viper intends to sell the securities in the near term in order to profit from expected interest rate declines.
Neither of the bond investments was sold by Viper in 2009.
On January 1,2010, Viper purchased a 60% controlling interest in Gremlin Corporation for $900 million.
Viper paid for the acquisition with shares of its common stock.
Exhibit 1 contains Viper's and Gremlin's pre-acquisition balance sheet data.

Exhibit 2 contains selected information from Viper's financial statement footnotes.

Using only the information contained in Exhibit 2, which of the following statements is most correct when presenting Viper's consolidated income statement for the year ended 2010?
A. No impairment loss is recognized under U.S. GAAP or IFRS.
B. An impairment loss of $275 million should be recognized under U.S. GAAP.
C. An impairment loss of $5 million should be recognized under IFRS.
Answer: A
Explanation:
Explanation/Reference:
Explanation:
According to U.S. GAAP, the goodwill is not impaired since the $1,475 million fair value of Gremlin exceeds the $1,425 million carrying value. Thus, no impairment loss is recognized.
Under IFRS, no impairment loss is recognized since the $1,430 million recoverable amount exceeds the
$1,425 million carrying value. (Study Session 5, LOS 21.b)

NEW QUESTION: 2
-- Exhibit -
user@router> show route protocol static
inet.0: 12 destinations, 12 routes (12 active, 0 holddown, 0 hidden)
+ = Active Route, - = Last Active, * = Both
192.168.1.128/27 *[Static/5] 00:03:13 > to 10.20.106.10 via fe-0/0/5.106 192.168.1.144/29 *[Static/5] 00:03:13 > to 10.20.14.131 via ge-0/0/0.0 192.168.1.192/27 *[Static/5] 00:03:13 > to 10.18.1.1 via ge-0/0/1.0 192.168.1.128/28 *[Static/5] 00:01:06 > to 10.20.14.130 via ge-0/0/0.0 -- Exhibit -
Given the routing entries shown in the exhibit, which next-hop IP address will be used for the destination IP address 192.168.1.159? (Assume that only static routes are available for the destination.)
A. 10.20.14.131
B. 10.18.1.1
C. 10.20.106.10
D. 10.20.14.130
Answer: C

NEW QUESTION: 3
REST is a(n) ...
A. Web service protocol similar to SOAP with a strict XML schema.
B. Principle to exchange information using XML and HTTP.
C. API to get information from social networking sites.
Answer: B