CSI CSC1 Based on Real Exam Environment

The description of a company's fixed assets, including details about their nature, valuation methods, and depreciation, is typically found in thenotes to the financial statements. Thesenotes provide additional context, explanations, and details about the figures presented in the financial statements. The statement of financial position will list fixed assets, but the comprehensive description is found in the notes.

References:

Volume 1, Chapter 11:Corporations and Their Financial Statements, section on "Notes to the Financial Statements" describes how notes are used to provide critical details about items in the financial statements, including fixed assets​.

The gain is calculated as:

Buying Price:5,000 shares purchased at $15.20 = $76,000.

Selling Price:5,000 shares sold at $15.25 = $76,250.

Profit Calculation:$76,250 - $76,000 =$1,000.

This reflects the gain from executing the market orders at the respective bid-ask prices.

Defined contribution (DC) plans have driven the demand for cost-effective, diversified, and easily tradeable investment products like exchange-traded funds (ETFs). Unlike defined benefit plans, where the employer guarantees payouts, DC plans place the responsibility for investment decisions and risks on individuals, who increasingly opt for ETFs for their low costs and broad market exposure.

A. The rise of financial technology companies: While fintech has contributed to the growth of investment products, it is not a primary driver of ETF usage.

C. The emergence of cryptocurrency: Cryptocurrencies are separate financial products and are not directly tied to the use of ETFs.

D. The popularity of robo-advisors: Robo-advisors use ETFs extensively, but this is a result of their popularity rather than a cause of ETF growth.

Thecoupon rateof the bond remains fixed at5%, as it is based on the bond's original par value of $100. Thecurrent yield, however, decreases because the bond's price has increased to $102.75. Current yield is calculated as:

Current Yield=Coupon PaymentCurrent Price\text{Current Yield} = \frac{\text{Coupon Payment}}{\text{Current Price}}Current Yield=Current PriceCoupon Payment​

Given:

Coupon Payment= $5

Current Price= $102.75

Current Yield=5102.75≈4.87%\text{Current Yield} = \frac{5}{102.75} \approx 4.87\%Current Yield=102.755​≈4.87%

A. The coupon is higher than 5%: The coupon remains fixed at 5%.

B. The current yield is higher than 5%: The current yield is lower than 5% due to the increased price.

D. The coupon is lower than 5%: The coupon does not change with the bond's price.