CFA Institute Investment Foundations
Certificate questions with answers.
absolute advantage ANS -when a country is more efficient in producing a good or a service than other
countries -- that is, it needs less resources to produce the good or service
absolute returns ANS -the returns achieved over a certain time period. Absolute returns do not consider
the risk of investment or the returns achieved by similar investments
accounting profit ANS -difference between the revenue generated from selling products and services
and the explicit costs of producing them
accounts payable ANS -money owed by a company to suppliers that have extended the company credit
accounts receivable ANS -money owed to a company by customers who purchase on credit
accrual basis ANS -accounting method in which revenues and related expenses are recorded when the
revenues are earned and the expenses are recognized rather than when the cash is received and paid
accrued liabilities ANS -liabilities related to expenses that have been incurred but not yet paid as of the
end of an accounting period
active investment managers ANS -Investment managers who try to predict which securities and assets
will outperform or underperform comparable securities and assets and who act on their opinions by
buying the securities and assets that they expect to outperform and selling (or simply not buying) the
securities and assets that they expect to underperform.
ad hoc documents ANS -documents that are typically informal, such as letters, memos, and emails
adverse selection ANS -tendency of people who are most at risk to buy insurance, causing insured losses
to be greater than average losses
Certificate questions with answers.
absolute advantage ANS -when a country is more efficient in producing a good or a service than other
countries -- that is, it needs less resources to produce the good or service
absolute returns ANS -the returns achieved over a certain time period. Absolute returns do not consider
the risk of investment or the returns achieved by similar investments
accounting profit ANS -difference between the revenue generated from selling products and services
and the explicit costs of producing them
accounts payable ANS -money owed by a company to suppliers that have extended the company credit
accounts receivable ANS -money owed to a company by customers who purchase on credit
accrual basis ANS -accounting method in which revenues and related expenses are recorded when the
revenues are earned and the expenses are recognized rather than when the cash is received and paid
accrued liabilities ANS -liabilities related to expenses that have been incurred but not yet paid as of the
end of an accounting period
active investment managers ANS -Investment managers who try to predict which securities and assets
will outperform or underperform comparable securities and assets and who act on their opinions by
buying the securities and assets that they expect to outperform and selling (or simply not buying) the
securities and assets that they expect to underperform.
ad hoc documents ANS -documents that are typically informal, such as letters, memos, and emails
adverse selection ANS -tendency of people who are most at risk to buy insurance, causing insured losses
to be greater than average losses
