Cooper Inc

question 74

Multiple Choice

Cooper Inc.took physical inventory at the end of 2015.Purchases that were acquired FOB destination were in transit,so they were not included in the physical count.

• A)Cooper needs to correct an accounting error.
• B)Cooper has made a change in accounting principle,requiring retrospective adjustment.
• C)Cooper is required to adjust a change in accounting estimate prospectively.
• D)Cooper is not required to make any accounting adjustments.

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Definitions:

Working Capital Accruals

The portion of earnings not realized in cash, representing changes in working capital that affect a company's cash flow.

Turnover

The ratio of the trading activity of a portfolio to the assets of the portfolio.

Liquidity Betas

A measure of how sensitive an asset's price is to changes in market liquidity, often used in financial modeling to assess the impact of liquidity risk.

Priced Factor

An element affecting the pricing of securities that is reflected in market prices due to its influence on asset returns.