CFA Level 1: Intro to FSA and Financial Reporting
Standards with all Correct & 100% Verified Answers
The financial statement that presents a shareholder's residual claim on assets is the ✔Correct
Answer-balance sheet - Owners' equity is the owners' residual claim on assets, which is shown on the
balance sheet
Where is Information about management and director compensation found? ✔Correct Answer-
Proxy statement, as well as partial information in the notes to the financial statements
What type of audit opinion is preferred when analyzing financial statements? ✔Correct Answer-An
unqualified opinion.
the Sarbanes-Oxley Act requires an auditor for a publicly traded firm in the United States to
✔Correct Answer-express an opinion about the effectiveness of the company's internal control
systems
What is an example of something that is not an enhancing qualitative characteristic of information in
financial statements? ✔Correct Answer-Accuracy
Valuing assets at the amount of cash or equivalents paid or the fair value of the consideration given
to acquire them at the time of acquisition most closely describes ✔Correct Answer-Historical Cost
complete set of financial statements includes: ✔Correct Answer-balance sheet, income statement
and other cimprehensive income, statement of changes in equity, statement of cash flows, notes
Expenses on the income statement may be grouped by ✔Correct Answer-IAS No. 1 states that
expenses may be categorized by either nature or function
increases in economic benefits from increases in assets, enhancement of assets, and decreases in
liabilities are defined as ✔Correct Answer-income under IFRS
Net Revenue equals ✔Correct Answer-Revenue less returns and allowances
Standards with all Correct & 100% Verified Answers
The financial statement that presents a shareholder's residual claim on assets is the ✔Correct
Answer-balance sheet - Owners' equity is the owners' residual claim on assets, which is shown on the
balance sheet
Where is Information about management and director compensation found? ✔Correct Answer-
Proxy statement, as well as partial information in the notes to the financial statements
What type of audit opinion is preferred when analyzing financial statements? ✔Correct Answer-An
unqualified opinion.
the Sarbanes-Oxley Act requires an auditor for a publicly traded firm in the United States to
✔Correct Answer-express an opinion about the effectiveness of the company's internal control
systems
What is an example of something that is not an enhancing qualitative characteristic of information in
financial statements? ✔Correct Answer-Accuracy
Valuing assets at the amount of cash or equivalents paid or the fair value of the consideration given
to acquire them at the time of acquisition most closely describes ✔Correct Answer-Historical Cost
complete set of financial statements includes: ✔Correct Answer-balance sheet, income statement
and other cimprehensive income, statement of changes in equity, statement of cash flows, notes
Expenses on the income statement may be grouped by ✔Correct Answer-IAS No. 1 states that
expenses may be categorized by either nature or function
increases in economic benefits from increases in assets, enhancement of assets, and decreases in
liabilities are defined as ✔Correct Answer-income under IFRS
Net Revenue equals ✔Correct Answer-Revenue less returns and allowances
