CFA level 1 question and answers graded A+ already passed 2023
2 views 0 purchase
Course
CFA
Institution
CFA (CFA)
CFA level 1 question and answers graded A+ already passed 2023faithful representation, substance over form, prudence, neutrality, completeness - correct answer According to the IFRS what are the 5 qualities of financial information that improve reliability
Costs can be reliably measured - correc...
CFA level 1 question and answers
graded A+ already passed 2023
faithful representation, substance over form, prudence, neutrality, completeness - correct answer
According to the IFRS what are the 5 qualities of financial information that improve reliability
Costs can be reliably measured - correct answer According to IFRS what condition must be met for
revenue recognition to occur?
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. - correct answer 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?
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. - correct answer 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
general requirement for financial statements. - correct answer Under IFRS the preparation of a complete
set of financial statements is best described as a:
Amortized Cost
Bonds payable issued by a company are financial liabilities that are measured at amortized cost. - correct
answer 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:
, Noncurrent Assets and noncurrent liabilities are listed before current assets and current liabilities. Also,
minority interest must be shown as a component of equity. - correct answer What features are unique to
financial statements in IFRS
Current assets and current liabilities are listed before noncurrent assets and noncurrent liabilities.
Minority interest is listed separately from equity or liabilities. - correct answer What features are unique
to financial statements in U.S. GAAP
The debt to equity ratio but not the interest coverage ratio.
The adjustments to convert operating leases would increase the amount of total debt in the debt-equity
ratio thus increasing the ratio; the portion of the lease payments estimated to be lease interest expense
would lower the interest coverage ratio. - correct answer 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 interest coverage?
the common-size balance sheets.
because it expresses all data as a percentage of total assets.
note: current ratio is a measure of a company's ability to repay its short term debt - correct answer To
gain insight into what portion of a company's assets is liquid, an analyst will most likely use:
Has a higher net profit margin
Dupont Analysis: Sales/Total Assets (asset turnover) =1.71 for A and 2.14 for B
equity(assets -liabilities)=45 for A and 100 for B
financial leverage mult. (assets/equity)=1.56 for A and 1.4 for B
ROE = profit mgn x asset turnover x financial leverage mult.
thus prft mgn A = 5.6% prft mgn B = 5% - correct answer The following info is available
Company A Company B
Sales 120M 300M
Assets 70M 140M
liabilities 25M 40M
If both companies achieve a ROE = 15%, company B compared to company A, regarding profit margin,
total asset turnover, and financial leverage will have:
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 EFT, 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 this summary from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller maxiscore. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy this summary for R232,84. You're not tied to anything after your purchase.
