Exam (elaborations)
CFA Financial Statements Exam Questions with correct Answers 2024( A+ GRADED 100% VERIFIED).
- Course
- Institution
CFA Financial Statements Exam Questions with correct Answers 2024( A+ GRADED 100% VERIFIED).
[Show more]
Seller
Follow
Content preview
CFA Financial StatementsBefore a company's financial statements can be published, an opinion on the fairness of the
presentation of the statements must be provided b - ANS auditors
Which of the following groups issues an opinion on the correctness and presentation of a
company's financial statements - ANS Auditors
International financial reporting standard setting is moving in the direction of having - ANS a
compatible set of high-quality standards across countries
With respect to issuance of a company's financial statements, the role of market regulators,
such as the SEC, is to - ANS support and enforce the adoption and use of financial reporting
standards
One of the current trends in accounting standard setting is to - ANS have countries' standards
converge to a compatible set of standards
An example of a current liability is - ANS wages earned but unpaid
When a company earns a profit and does not distribute any portion of that profit to its owners,
the result is an increase in - ANS retained earnings
The process of allocating the cost of a long-term asset over its useful life as an expense on the
income statement is called - ANS depreciation
On a company's balance sheet, in order for the equity section to more closely reflect the current
market value of the company's shares, the company would have to - ANS report its assets and
liabilities at fair value
If a company sells goods on credit, at the time of the sale there will also be an increase in -
ANS accounts receivable
Which of the following describes the net book value of a long-term asset - ANS The gross value
of an asset minus its accumulated depreciation
Which of the following is classified as a current asset on a company's balance sheet - ANS
Inventory
, Which of the following terms describes credit extended to a company by its suppliers - ANS
Accounts payable
The financial statement that provides information about the resources that a company controls
is called the statement of - ANS financial position
The financial statement used to find information about the shareholders' investment in the
company is called the - ANS balance sheet
Which of the following assets is reported at its original cost minus any accumulated depreciation
- ANS Machinery
Information about the expenses incurred to earn revenue is found on the - ANS statement of
operations
Which of the following financial statements identifies the profit or loss generated by a company
over a given period of time - ANS Statement of operations
The calculation of a company's operating income would include the deduction of which of the
following expenses - ANS Depreciation expense
Operating income is calculated as - ANS gross profit minus other operating expenses
A company's reported profits will be lower than its cash flow for the same period if the company
- ANS owes employees wages at the end of the period
If a company makes a sale of a product in December on credit and collects the payment for the
sale in January, which of the following statements related to this sale is true? In December -
ANS profit will be higher than cash flow
To understand the changes in a company's long-term assets over the year, an investor would
review the company's - ANS cash flow statement
The collection of amounts in accounts receivable would result in an increase in - ANS cash
from operations on the cash flow statement
When the cash flow statement is prepared using the indirect method, depreciation expense is a
non-cash expense that - ANS increases the cash from operations
Information about the cash received and spent throughout the year by a company is found on
the - ANS cash flow statement
A company purchases a capital asset for cash. In the year of purchase, this asset will decrease
- ANS cash from investing activities by the cost of the asset
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller KINGJAY. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $11.99. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
53920 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now