CFA EXAM REVIEW WITH CORRECT 150+
QUESTIONS WITH CORRECTRY ANALYZED
ANSWERS (ACTUAL EXAM) ALREADY
GRADED A+ LATEST 2024
1. The Conceptual Framework sets out certain enhancing
qualitative characteristics of accounting information. Which of
the following is not an enhancing qualitative characteristic?
A. Understandability
B. Profit-oriented
C. Timeliness
D. Comparability - ANSWERS-B. Profit-oriented
2. The overall objective of financial reporting is to provide
information
,a. that is useful for decision making.
b. about an enterprise's assets, liabilities, and owners' equity.
c. about an enterprise's financial performance during a period.
d. that allows owners to assess management's performance. -
ANSWERS-a. that is useful for decision making.
. According to the conceptual framework, the objectives of
financial reporting for business enterprises are based on
a. Generally accepted accounting principles.
b. Reporting on management's stewardship.
c. The need for conservatism.
d. The needs of the users of the information. - ANSWERS-d. The
needs of the users of the information.
3. What is the objective of financial reporting as indicated in the
conceptual framework?
A. Provide information that is useful to those making investing
and credit decisions.
B. Provide information that is useful to management.
C. Provide information about those investing in the entity.
,D. Provide information that is useful to internal users. -
ANSWERS-A. Provide information that is useful to those making
investing and credit decisions.
4. The users of financial information can be divided into two
major categories: external users and internal users. These two
groups have somewhat different decision-making information
needs because of their differing relationships with the company
providing economic information. Which of the following is not a
basic decision-making information need for external users?
a. Whether to buy, to hold, or to sell investments.
b. To know the risk inherent in, and return provided by, their
investments.
c. Whether to extend credit, maintain the credit relationship, or
not extend credit.
d. To make operating decisions. - ANSWERS-d. To make
operating decisions.
5. During a period when an enterprise is under the direction of
a particular management, its financial statements will directly
provide information about
a. Both enterprise performance and management performance.
, b. Management performance but not directly provide
information about enterprise performance.
c. Enterprise performance but not directly provide information
about management performance.
d. Neither enterprise performance nor management
performance. - ANSWERS-c. Enterprise performance but not
directly provide information about management performance.
6. Which of the following is NOT one of the qualitative
characteristics of useful financial information according to the
2018 Revised Conceptual Framework for Financial Reporting of
IASB?
a. Relevance
b. Faithful representation
c. Timeliness
d. Materiality - ANSWERS-Answer: D. Materiality
Explanation: Materiality is a threshold used to assess whether
information is significant enough to influence decision-making.
It is not a qualitative characteristic of useful financial
information. Relevance, faithful representation, and timeliness
are considered qualitative characteristics of useful financial
information according to the framework.
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