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AZ-204 Exam Simulator
  • Exam Code: AZ-204
  • Exam Name: Developing Solutions for Microsoft Azure
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NEW QUESTION: 1
Galena Petrovich, CFA, is an analyst in the New York office of TRS Investment Management, Inc.
Petrovich is an expert in the industrial electrical equipment sector and is analyzing Fisher Global. Fisher is a global market leader in designing, manufacturing, marketing, and servicing electrical systems and components, including fluid power systems and automotive engine air management systems.
Fisher has generated double-digit growth over the past ten years, primarily as the result of acquisitions, and has reported positive net income in each year. Fisher reports its financial results using International Financial Reporting Standards (IFRS).
Petrovich is particularly interested in a transaction that occurred seven years ago, before the change in accounting standards, in which Fisher used the pooling method to account for a large acquisition of Dartmouth Industries, an industry competitor. She would like to determine the effect of using the purchase method instead of the pooling method on the financial statements of Fisher. Fisher exchanged common stock for all of the outstanding shares of Dartmouth.
Fisher also has a 50% ownership interest in a joint venture with its major distributor, a U.S. company called Hydro Distribution. She determines that Fisher has reported its ownership interest under the proportioned consolidation method, and that the joint venture has been profitable since it was established three years ago. She decides to adjust the financial statements to show how the financial statements would be affected if Fisher had reported its ownership under the equity method. Fisher is also considering acquiring 80% to
100% of Brown and Sons Company. Petrovich must consider the effect of such an acquisition on Fisher's financial statements.
Petrovich determines from the financial statement footnotes that Fisher reported an unrealized gain in its most recent income statement related to debt securities that are designated at fair value. Competitor firms following U.S. GAAP classify similar debt securities as available-for-sale.
Finally, Petrovich finds a reference in Fisher's footnotes regarding a special purpose entity (SPE). Fisher has reported its investment in the SPE using the equity method, but Petrovich believes that the consolidation method more accurately reflects Fisher's true financial position, so she makes the appropriate adjustments to the financial statements.
What are the likely effects on return on assets (ROA) and net profit margin (ignoring any tax effects) of correctly adjusting for Fisher Global's investment in the SPE using the acquisition method?
ROANet profit margin
A. Decrease No change
B. No change Decrease
C. Decrease Decrease
Answer: C
Explanation:
Explanation/Reference:
Explanation:
The acquisition method results in higher assets and higher sales, but the same net income. Therefore, both ROA (net income divided by assets) and net profit margin (net income divided by sales) will decrease.
(Study Session 5. LOS 21.c)

NEW QUESTION: 2
Which three Demisto incident type features can be customized under Settings > Advanced > Incident Types?
(Choose three.)
A. Define the way that incidents of a specific type are displayed in the system
B. Drop new incidents of the same type that contain similar information
C. Define whether a playbook runs automatically when an incident type is encountered
D. Add new fields to an incident type
E. Set reminders for an incident SLA
Answer: A,B,C

NEW QUESTION: 3
You are training machine learning models in Azure Machine Learning. You use Hyperdrive to tune the hyperparameters. In previous model training and tuning runs, many models showed similar performance. You need to select an early termination policy that meets the following requirements:
* accounts for the performance of all previous runs when evaluating the current run
* avoids comparing the current run with only the best performing run to date Which two early termination policies should you use? Each correct answer presents part of the solution.
NOTE: Each correct selection is worth one point.
A. Default
B. Bandit
C. Truncation selection
D. Median stopping
Answer: A

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