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CFA Financial Statements Exam Questions with correct Answers 2024( A+ GRADED 100% VERIFIED).
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CFA Financial Statements Exam Questions with correct Answers 2024( A+ GRADED 100% VERIFIED).
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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
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