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Università: Politecnico di Milano
Corso di laurea: Management Engineering
Materia: Accounting, Finance & Control
Classificazione: Esame · Altro
Contenuto: Testo d’esame
Formato originale: PDF
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Materiale universitario di Accounting, Finance & Control per il corso di Management Engineering presso Politecnico di Milano. Il documento tratta: Teoria AFC Financial Accounting Exercise 1 Which one of the following sentences on accounting principles is CORRECT? A. According to the accrual logic, transactions are recorded in the Income Statement when they can be considered as “completed”, i.e. when cash is received…

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Pagina 1

Teoria AFC Financial Accounting Exercise 1 Which one of the following sentences on accounting principles is CORRECT? A. According to the accrual logic, transactions are recorded in the Income Statement when they can be considered as “completed”, i.e. when cash is received (and/or payments are made). B. The impairment test is not used with the cost model. C. If an asset is evaluated according to the fair value model, depreciation must not be calculated. D. With the fair value model, the change in the value of an asset can be balanced either in the Income Statement or in the Equity section of the Balance Sheet. Exercise 2 Considering the “matching principle”, which of the following statements does NOT refer to a consequence of this principle? A. Equipment must be depreciated. B. Buying raw materials for the warehouse does not affect the EBIT. C. Financial costs associated with bank loans must be paid at the end of every year. D. Period costs must be included in the Income Statement of the fiscal year when they are incurred. Exercise 3 Considering the “matching principle”, which of the following statements does refer to a consequence of this principle? A. Equipment must be recorded in the Balance Sheet among the Assets. B. Buying raw materials for the warehouse does not affect the EBIT. C. Financial costs associated with bank loans must be paid at the end of every year. D. Intangible assets with indefinite life must be assessed for impairment on a yearly basis. Exercise 4 According to the Financial Leverage formula: A. Increasing the D/E ratio has always a positive impact on ROE. B. If D/E = 0, ROE always equals ROI. C. The capital structure of the company (i.e. the D/E ratio) amplifies the fluctuations (i.e. the variance) of ROE (i.e. the higher D/E, the higher the…

Pagina 4

B. The company is going to face a liquidity issue in 2022, and the CFO should ask for a short term loan. C. The company is going to face a liquidity issue in 2022, but there is not enough information to choose between the potential funding alternatives. D. There will be no liquidity issue in 2022. Exercise 4 In estimating the Cost of Equity (Ke) using the Capital Asset Pricing Model (CAPM), which of the following statements is correct? A. The value of Beta ranges between -1 and 1. B. For an unlisted company, knowing the financial leverage (D/E) is necessary for the calculation of the Cost of Equity (Ke). C. Knowing the Credit Default Spread (CDS) is necessary for the calculation of the Cost of Equity (Ke). D. None of the other answers. WACC Exercise 1 Which of the following sentences regarding Weighted Average Cost of Capital (WACC) is WRONG? A. The financial leasing policy influences the computation of WACC. B. The computation of WACC takes into account the credit default spread. C. Because of the tax shield effect, WACC is generally lower than the cost of debt. D. The computation of WACC takes into account the volatility of returns of a company. Exercise 2 Company A is going to increase its leverage significantly by opening new bank loans. No variation on Equity is planned. What do you expect will happen reasonably to the cost of equity (i.e. the cost of shareholders’ capital) of company A? A. It will not vary because the increase of financial costs as a result of the increased bank loans will be compensated by the increase of EBIT, with the result that the Interest Coverage Ratio (ICR) will remain reasonably constant. B. It will increase because the banks will perceive Company A as riskier and, in the light of this, they will increase the Credit Default Spread…

Pagina 8

B. Must include the estimated value of purchases of long-term assets (e.g. plant and equipment, intangible assets) and the distribution of corresponding cash outflows over time. C. Must include the estimated payments to all the different suppliers for the following year. D. None of the other answers is correct. Financial Planning Exercise 1 To support the introduction of a new line of production, Company C plans to lease a production equipment, instead of buying it for 15,000€. The leasing contract requires Company C to pay a rent of 3,500€ each year for the next 5 years (starting from year 1), with a leasing interest rate equal to 8.36%. The equipment will be depreciated by 3,000€ each year over its useful life. Based on the available data, calculate the value of the capital quota on the first year of the leasing contract (year 1). A. On the first year, the capital quota is 3,500€, that is equivalent to the leasing rent. B. On the first year, the capital quota is 2,246€, that is equivalent to the leasing rent minus the interest quota. C. On the first year, the capital quota is 11,500€, that is equivalent to the value of the asset minus the leasing rent. D. On the first year, the capital quota is 2,343€, that is equivalent to the leasing rent minus the interest quota. Exercise 2 Which of the following statements regarding the lines of credit as a financing option is CORRECT? A. Lines of credit are the less expensive among short term financing possibilities. B. Lines of credit are a good instrument for investment activities. C. Lines of credits are used mostly to cover short-term imbalances. D. Interest rates of line of credits are always floating. Exercise 3 Assuming that only the Balance Sheet of the last fiscal year is available, which of the following…

Pagina 11

D. Assuming that the price of the final product remains unchanged, if the entity of the transaction costs saved by one of the two business units is much higher than the amount saved by the other unit, the transfer price may be slightly adapted to rebalance profitability (i.e. to evenly distribute the higher profitability enabled by the internal transaction due to the reduction of transaction costs). Exercise 5 About transfer pricing based on costs and mark-up, where: • cv = actual variable cost per unit • CF = total fixed actual costs • Q = actual quantity to be transferred from the selling business unit to the buyer business unit a = selling business unit’s mark-up cv’ = standard variable cost per unit CF’ = total fixed standard costs • Q’ = standard quantity planned to be transferred from the selling business unit to the buyer business unit which of the following transfer price (TP) is more appropriate if the corporation wants to incentivize the efficiency of selling business unit: A. TP = (cv + CF/Q) * (1 + a) B. TP = (cv’ + CF’/Q’) * (1 + a) C. TP = (cv’ + CF’/Q) * (1 + a) D. The corporate level should prefer negotiated transfer prices Exercise 6 Company A has a full actual cost policy for transfer pricing, but it is now deciding to move to full standard cost. The transfer pricing policy is used for all the transactions between the two subsidiaries of A: specifically, the upstream subsidiary A1 sells to the downstream subsidiary A2. Which one of the following sentences is CORRECT, considering that the production capacity of A1 is abundantly superior to the total demand (i.e., the internal demand of A2 and the external one)? A. With the same quantity produced and sold by A1, moving to the full standard cost policy, the EBIT of subsidiary A2 will be always higher…

Pagina 15

A. The corporate costs associated with the exploration of Gen AI should not be allocated to the BUs because the research has not yet generated value for them. B. The costs incurred for the exploration of Gen AI cannot be considered corporate costs because they are not directly associated with the business of the three BUs. C. The corporate costs associated with the exploration of Gen AI should be allocated to the BUs through a fee- based approach because it is the approach that maximizes the application of the “specific responsibilities” requirement. D. None of the other answers is correct. Exercise 11 Which of the following statements about organizational reporting is CORRECT? A. Indicators at all levels should always prioritize financial metrics over non-financial ones. B. Cost centers are responsible for generating revenues and controlling costs. C. Indicators for top management primarily focus on detailed operational metrics. D. None of the others Exercise 12 Company “Pietro” is a large company with two corporate-level resources: a Human Resources department and a Legal Office. It is composed of 2 BUs: “One” and “Le”. The cost of the Human Resources (HR) department is allocated based on an hourly fee and the time spent by HR staff in supporting activities based on its annual capacity. The cost of the Legal Office is instead fully allocated to BUs based on BU’s revenues. Based on this information, which of the following statements is TRUE? A. The higher the time spent by HR for “Le”, the lower the HR cost allocated to “One” B. If some employees working in the Legal office spend some hours working for the HR department, these related costs will not be allocated to the BUs. C. If some employees working in the HR department make use of Legal Office’s services, the…

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