Use Free CFA-Level-I Exam Questions that Stimulates Actual EXAM [Q939-Q953]

Use Free CFA-Level-I Exam Questions that Stimulates Actual EXAM

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CFA CFA-Level-I: CFA Institute CFA Level I Chartered Financial Analyst Certification Path

In the CFA Level 1 test, the candidates can gain results with CFA Level 1 exam dumps pdf. Candidates will find in the Qualification Issues Forum what they are searching for. If the applicant fully practises these queries, he will comfortably deal with his exam. When they memorize them, they get a sense of the real test. Applicants should recognise all measures a candidate should provide in order to pass the CFA Level 1 Exam Qualification. Candidates are only a few steps away from the performance. So if the candidates schedule our CFA level 1 exam dumps, they will realise their dream.
Be one with your calculator. You must understand how to use the calculator features that are used to answer the learning outcomes (LOS).Examination issues relating to financial reporting and analysis (FRA) are focused, as otherwise defined, on International Financial Reporting Standards (IFRS). When an issue is focused on the U.S. GAAP, the question is specified. Answer all queries. Answer all the questions. There is no punishment for wrong responses. Comfortably dressed up. There is no dress code, but laid-back attire is encouraged.Calm shoes are a bonus. CFA Level 1 practice exams is the best start towards understanding the concepts of examination.

How to book CFA CFA-Level-I: CFA Institute CFA Level I Chartered Financial Analyst Exam

You must follow these steps to apply for CFA Level 1:

1. Go to the Official Site CFA Level 1
2. Carefully read the directions
3. Follow the steps mentioned
4. Apply for the CFA level 1

Topics of CFA CFA-Level-I: CFA Institute CFA Level I Chartered Financial Analyst Exam

Before preparation begins, candidates need to know the examination topics. And it’s going to help them to reach the center. CFA Level 1 exam dumps will include the following topics:

• Quantitative Methods
  In this section, we explore quantitative concepts and techniques used in financial analysis and investment decision making. We present descriptive statistics for conveying important data attributes, such as central tendency, location, and dispersion, and introduce characteristics of return distributions. The section also considers probability theory and its application in quantifying risk for investment decision making.
• Economics
• Ethical and Professional Standards
  The focus of this topic is ethics, related challenges to ethical behavior, and the role ethics and professionalism play in the investment industry. We provide a framework to support ethical decision making and examine the CFA Institute Code of Ethics and Standards of Professional Conduct and Global Investment Performance Standards (GIPS).

In this section, we introduce analysis of fundamental concepts of supply and demand for individual consumers and firms. We also cover the various market structures that firms operate in as well as macroeconomic concepts and principles, including aggregate output and income measurement, aggregate demand and supply analysis, and analysis of economic growth factors. The section concludes with coverage of the business cycle and its effect on economic activity.

• Alternative Investments
  This topic explores alternative investments, including hedge funds, private equity, real estate, commodities, and infrastructure. We cover the use of alternative investments for diversification and higher returns. In this curriculum, we define alternative investments and the characteristics they have in common.

• Portfolio Management
  In this topic, we explain the fundamentals of portfolio and risk management, including return and risk measurement and portfolio planning and construction. We examine the needs of individual and institutional investors along with the range of available investment solutions. The capital asset pricing model is used to identify optimal risk in portfolios.

• Equity Investments
  Here we explore the characteristics of equity investments, security markets, and indexes and explain how to analyze industries, companies, and equity securities as well as the use of basic equity valuation models. Global equities are important for meeting longer-term growth and diversification objectives.

• Financial Reporting and Analysis
  Here we provide a thorough explanation of financial reporting procedures and the standards that govern financial reporting disclosures, with an emphasis on basic financial statements and how alternative accounting methods affect those statements and the analysis of them. We examine primary financial statements and provide a general framework for conducting financial statement analysis.

• Fixed Income
  In this topic, we explain how to describe fixed income securities and their markets, yield measures, risk factors, and valuation measurements and drivers. We also cover calculating yields, values of fixed income securities, the securitization of assets, the fundamentals of bond returns and risks, and basic principles of credit analysis.

NO.939 Which of the following components reduces the annual pension expense amount?

 Actual return on plan assets.

 Expected return on plan assets.

 Amortization of unrecognized prior service cost.

NO.940 According to the quantity theory of money, which one of the following economic variables would change in response to an increase in the money supply?

 prices

 velocity

 employment

The quantity theory of money implies that the existing money stock M multiplied by velocity V equals the nominal GDP (output times the price level). In order to maintain the equality, if M increases, the price level P must also increase.

NO.941 When adjusting for an unpaid expense that has been incurred but not recorded, which of the following occur?

 An expense is increased and a liability is increased.

 An expense is increased and an asset is decreased.

 An expense is increased and a liability is decreased.

When adjusting for an unpaid expense, such as accrued wages, an appropriate expense account (Wages Expense) is debited and an appropriate liability account (Wages Payable) is recorded.

NO.942 Reclassification of capitalized interest as an expense will have the following balance sheet effect:

 Reduction in shareholders’ equity by the product of the change in capitalized interest and (1 – Tax rate).

 Decrease in deferred tax liability by the change in capitalized interest.

 Reduction in capitalized asset by the product of (1 – Tax rate) and capitalized interest adjustment.

By treating capitalized interest as an expense, net income will be reduced by the amount of capitalized interest with a tax saving of the capitalized interest multiplied by the tax rate. The net is given by, Reduction in shareholders’ equity = (1 – Tax rate) x Capitalized interest

NO.943 Which of the following statement is not true about treasury bills?

 Treasury bills have maturities less than a year and do not pay any coupons.

 Treasury bills are generally issued at par.

 Treasury bills have no credit risk.

NO.944 Which of the following items would have a tax consequence for financial accounting purposes?
I). Fines Paid for Law Violations
II). Product Warranty Liabilities
III). Life Insurance Proceeds Received (co. is beneficiary)

 II only.

 II and III.

 I and II.

Fines paid for law violations are never deductible for tax purposes, and life insurance proceeds where the company is the beneficiary are never taxed. Therefore, these are permanent differences and do not have tax consequences. Differences due to warranty expenses, however, will create temporary differences and do have tax consequences.

NO.945 Imagine a fictional derivative that pays $100 on Christmas Day, but only if that day is a Sunday. Prior to introduction of this imaginary derivative, it was impossible to achieve this specific payoff. The new fictional derivative has:

 increased market completeness

 left market completeness unchanged

 created an arbitrage opportunity

Since the imaginary derivative offers a unique payoff pattern that was not previously available, it has made the market more complete.

NO.946 The revaluation model is:
I). An alternative to the cost model.
II). Not permitted under IFRS.
III). Not permitted under U.S. GAAP.

 I and II.

 I and III.

 III only.

IFRS permits the use of either the revaluation model or the cost model.

NO.947 Which of the following strategies would you advise against the most if you were expecting stock prices to appreciate significantly?

 Writing a put while owning the underlying asset.

 Writing a put without actually owning the underlying asset.

 Writing calls without actually owning the underlying asset.

If stock prices are expected to increase, it would be very risky to sell securities that appreciate in value due to a market appreciation. Writing a call option would be exactly that. Uncovered call writing simply refers to the practice of selling a call when the underlying stock is not owned by the investor.

NO.948 In a given year, Gondolpha had total imports of 976 and total exports of 734. It also made direct foreign investments of 297. There were no other transactions on the BOP account. What’s the current account deficit?

 242

 55

 539

976 – 734 = 242. It’s a deficit.

NO.949 Abbey Company issued $1,000,000 of 10-year bonds with a contractual interest rate of LIBOR + 2%.
The interest rate is to be reset annually. Bondholders will receive interest annually. The LIBOR for the year 2000 is 5.5%. The entry to record interest expense for the year 2000 is

 Interest expense (debit) 55,000; Discount on bonds payable (debit) 20,000; Accrued interest payable
(credit) 75,000

 Interest expense (debit) 75,000; Discount on bonds payable (credit) 20,000; Accrued interest payable
(credit) 55,000

 Interest expense (debit) 75,000; Accrued interest payable (credit) 75,000

Floating rate debt is almost always issued at par, so there is no premium or discount to be amortized. Interest expense is debited for $75,000 which is the face value of $1 million * the interest rate of 7.5% (the LIBOR of 5.5% plus 2%).

NO.950 On June 28, 2001, a business sold for $1,500 a plant asset that cost $5,000. The asset had a 5-year service life, no salvage value, and had been used by the business since January 1, 1998. Straight-line depreciation was used. The fiscal year ends on December 31. What will be the result of selling the plant asset?

 A $500 gain on the disposal of a plant asset.

 A $500 loss on the disposal of a plant asset.

 No gain or loss on the disposal of the plant asset.

The annual depreciation was $1,000 ($5,000 / 5). The book value on June 28 was $1,500
($5,000 – ($1,000 X 3) – ($1,000 X 1/2)). The sales price was equal to the book value; there was no gain or loss.

NO.951 Which of the following statements is true concerning the use of LIFO in a period of rising prices?

 The use of LIFO will lead to a useful working capital number and inventory turnover

 The debt-to-equity ratio will be higher than under FIFO

 The use of LIFO will lead to lower cash flows

When FIFO is used, the cost of goods sold is lower, income is higher, and retained earnings is higher. This makes the equity LIFO higher; thus the debt-to-equity ratio under FIFO will be lower than under LIFO.

NO.952 Susan Brown has recently received her CFA charter. She sends a letter to her clients announcing her new designation. In the letter she describes the examination series and other requirements that she has fulfilled.

 She has violated the Standards because she sent the information in an unsolicited letter.

 She has violated the Standards because she must not use the abbreviation “CFA.”

 She has not violated the Standards.

NO.953 An analyst has gathered the following information about a company:
Balance Sheet
Assets Cash 100 Accounts Receivable 750 Marketable Securities 300 Inventory 850 Property, Plant &
Equip 900 Accumulated Depreciation (150) Total Assets 2750
Liabilities and Equity Accounts Payable 300 Short-Term Debt 130 Long-Term Debt 700 Common Equity
1 000 Retained Earnings 620 Total Liab. and Stockholder’s equity 2750
Income Statement
Sales 1500 COGS 1100 Gross Profit 400 SG&A 150 Operating Profit 250 Interest Expense 25 Taxes 75
Net Income 150
What is the inventory turnover ratio?

 1.29.

 1.59.

 0.77.

Inventory turnover = 1100(COGS)/850(inventory) = 1.29

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