Exam (elaborations)
CFA-Chartered Financial Analyst New Exam Questions And Answers 100% Correct
- Course
- Institution
CFA-Chartered Financial Analyst New Exam Questions And Answers 100% Correct...
[Show more]
Content preview
CFA-Chartered Financial Analyst New ExamQuestions And Answers 100% Correct
Comprehensive Income - ANSWER It is a more inclusive measure that includes all
changes in equity except for owner contributions and distributions. That is,
comprehensive income is the sum of net income and other comprehensive income.
Other Comprehensive Income - ANSWER Are all costs and gains from items not in the
income statement. Items such as:
1. Foreign currency translation gains and losses.
2. Adjustments for minimum pension liability.
3. Unrealised gains and losses from cash flow hedging derivatives
4. Unrealised gains and Losses on Available-for-sale securities
Available-for-sale securities They are not expected to be held to maturity. The
appreciation or loss is reported on the Stock Holder's Equity as a component of
comprehensive income.
Barter Transactions - ANSWER Revenue from barter transactions can only be
recognized if its fair value can be estimated from historical data on similar non-barter
transactions.
Aggressive Revenue Reporting - ANSWER is when revenue is reported earlier, which
will inflate current period revenue reporting, Percentage of Completion method is more
aggressive than completed contract method.
Basic EPS - ANSWER = [Net Income - Preferred Dividends]/ [Weighted Avg. Number of
Shares Outstanding]
Assets - ANSWER Resources controlled as a result of past transactions that are
expected to provide future economic benefit
, Liabilities - ANSWER Obligations as a result of past events that are expected to require
an outflow of economic resources
Equity - ANSWER The owners' residual interest in the assets after deducting the
liabilities. Also known as: Stockholders' equity, shareholders' equity, or net assets
What are some of the limitations of the balance sheet in financial analysis? - ANSWER
For example, some assets are reported at historical cost, some are reported at
amortized cost and others may be reported at fair value. There are numerous valuation
bases. Even if the balance sheet was reported at fair value, the value may have changed
since the balance sheet date. Also, there are a number of assets and liabilities that do
not
appear on the balance sheet but certainly have value. For example, the value of a firm's
employees and reputation is not reported on the balance sheet.
Liquidity - ANSWER The ability to meet short-term obligations
Solvency - ANSWER The ability to meet long-term obligations.
Classified Balance Sheet - ANSWER Shows assets and liabilities in current/noncurrent
format - Useful to evaluate liquidity
Liquidity-based format - ANSWER under IFRS - lists the assets and liabilities according
to liquidity
CA
Current Assets - ANSWER Cash and those items that are going to be readily converted
to cash within one year or operating cycle
Operating Cycle - ANSWER Time it takes to produce/purchase the inventory to sell
product to collect cash
Working Capital - ANSWER Current Assets - current liabilities
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 Easton. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $13.99. 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