CFA Level 1 Exam 1 || With Questions & Answers (100% Accurate)
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Course
CFA - Chartered Financial Analyst
Institution
CFA - Chartered Financial Analyst
CFA Level 1 Exam 1 || With Questions & Answers (100% Accurate)
CFA Level 1 Exam 1 || With Questions & Answers (100% Accurate)
According to the IFRS what are the 5 qualities of financial information that improve reliability - ANSWER - faithful representation, substance over form, prudence, neutr...
, CFA Level 1 Exam 1 || With Questions
& Answers (100% Accurate)
According to the IFRS what are the 5 qualities of financial information that improve
reliability - ANSWER - faithful representation, substance over form, prudence,
neutrality, completeness
According to IFRS what condition must be met for revenue recognition to occur? -
ANSWER - Costs can be reliably measured
A company accrued wages of $2,000 and collected accounts receivable of $10,000.
What best describes the effect of these two transactions on the company? -
ANSWER - Current ratio will decrease.
Accruing wages increases both current liabilities and expenses, but collecting
receivables has no effect on current assets or sales therefore the current ratio and
net income both decrease.
A company had 100,000 shares outstanding on 1 Jan 2009. The company has no
plans to issue additional shares or purchase treasury shares during the year, but is
planning either a two-for-one stock split or a 100 percent stock dividend on 1 July.
The number of shares used to determine eps at 31 Dec 2009 is - ANSWER -
200,000 for both the stock split and the stock dividend.
Stock dividends and splits are treated in the same way for purposes of determining
weighted average number of shares outstanding the adj in the # of shares is made
as if the stock split or dividend occurred at the beginning of the year.
Under IFRS the preparation of a complete set of financial statements is best
described as a: - ANSWER - general requirement for financial statements.
A company issued bonds in 2009 that mature in 2019. The measurement basis that
will most likely be used on the 2009 balance sheet for the bonds is: - ANSWER -
Amortized Cost
Bonds payable issued by a company are financial liabilities that are measured at
amortized cost.
What features are unique to financial statements in IFRS - ANSWER - Noncurrent
Assets and noncurrent liabilities are listed before current assets and current
liabilities. Also, minority interest must be shown as a component of equity.
What features are unique to financial statements in U.S. GAAP - ANSWER - Current
assets and current liabilities are listed before noncurrent assets and noncurrent
liabilities. Minority interest is listed separately from equity or liabilities.
An analyst makes the appropriate adjustments to the financial statements of retail
companies that are lessees using a substantial number of operating leases.
Compared to ratios computed from the unadjusted statements, the ones computed
from the adjusted statements would most likely be higher for: debt to equity or
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