Jennifer Frye, CFA, is comparing the financial performance of a firm that presents its results under IFRS to that of a firm that complies with U.S. GAAP. The U.S. firm uses the LIFO method for inventory accounting and the other firm uses the FIFO method. If Frye performs the appropriate adjustments to make the U.S. firm’ s financial statements comparable to the firm that reports under IFRS, her adjustments are least likely to change the firm’ s :（）
A. quick ratio.
B. net profit margin.
C. debt-to-equity ratio.
参考答案：A
解析：
The analyst should add the U. S. GAAP firm’ s LIFO reserve to its balance sheet inventory and subtract the change in the LIFO reserve from its cost of goods sold. This adjustment will increase the firm’ s total assets and change its pretax income, income taxes, net income, and retained earnings ( increasing them if the LIFO reserve increased, or decreasing them if the LIFO reserve decreased). These adjustments will change the firm’ s debt-to-equity ratio by changing total equity; net profit margin by changing net income; and cash conversion cycle by changing inventories. The adjustments do not change current liabilities or current assets other than inventories, so the quick ratio is not affected.