CFA Level 1: FSA with all Correct & 100% Verified
Answers |Actual Complete Exam |Already Graded A+
(Just Released)
IFRS Conceptual Framework ✔Correct Answer-1. Fundamental characteristics of financial
statements are relevance and faithful representation.
2. Elements of financial statements are assets, liabilities, and owners' equity (for measuring financial
position) and income and expenses (for measuring performance)
3. Constraints on financial statement preparation include cost versus benefit and the difficulty of
capturing non-quantifiable information in financial statements
4. The two primary assumptions that underlie the preparation of financial statements are the accrual
basis and the going concern assumption
Describe the role of financial reporting and financial statement analysis ✔Correct Answer-The role
of financial reporting is to provide users with information about a company's performance and
financial position
The role of financial statement analysis is to utilize financial statements to aid users in making
economic decisions
Describe the objective of audits of financial statement ✔Correct Answer-The objective of audits is
to provide an opinion on financial statements' fairness and reliability
What are the type of audit reports? ✔Correct Answer-1. Unqualified: The best kind of opinion. No
departures from GAAP
2. Qualified: Mostly ok. Just a few things that the auditor points out.
3. Disclaimer of opinion: The auditor can't give an opinion for some reason.
4. Adverse opinion: Really bad. Significant departures from GAAP
What are some information sources that analysts use beside annual reports? ✔Correct Answer-
Quarterlies, Semiannual reports, proxy statements, earnings calls, press releases, third party industry
reports
What are the steps in the financial statement analysis framework? ✔Correct Answer-1. State
objective of analysis
2. Gather data
3. Process data
4. Analyze data
5. Report the conclusions or recommendations
6. Update analysis
, Describe the importance of financial reporting standards in security analysis and valuation
✔Correct Answer-Financial reporting standards are designed to ensure that different firms'
statements are comparable to one another
Describe the role of financial reporting standard-setting bodies ✔Correct Answer-The role of
financial reporting standard-setting bodies is to create a set of reporting standards that companies
abide by. The two main standard-setting bodies are the FASB in the US and the IASB for the rest of
the world.
Describe the role of financial regulatory bodies ✔Correct Answer-Financial regulatory bodies
enforce compliance with the reporting standards set forth by the standard-setting bodies. The two
main regulatory bodies are the SEC in the US and the FSA in the UK. The IOSCO is an international
collective of these regulatory bodies.
Describe the status of global convergence of accounting standards ✔Correct Answer-Global
convergence is well on its way, with more and more countries adopting IASB standards.
What are some ongoing barriers to developing one universally accepted set of financial reporting
standards? ✔Correct Answer-1. Changes of opinion among standard-setting bodies and financial
regulatory agencies
2. Political pressure within countries by groups that would be affected by changes
IASB Conceptual Framework: Fundamental Characteristics ✔Correct Answer-The fundamental
characteristics are:
1. Relevance
2. Faithful Representation
IASB Conceptual Framework: Enhancing Characteristics ✔Correct Answer-The enhancing
characteristics are:
1. Comparability
2. Verifiability
3. Timeliness
4. Understandability
IASB Conceptual Framework: Required Reporting Elements ✔Correct Answer-1. Assets
2. Liabilities
3. Owners' Equity
4. Income
5. Expenses
IASB Conceptual Framework: Constraints on financial statement preparation ✔Correct Answer-
Constraints Include:
1. Cost vs. benefit
2. Difficulty of capturing non-quantifiable information in the statements
IASB Conceptual Framework: Two Primary Assumptions ✔Correct Answer-1. The entity is a going
concern
2. Accrual basis
Answers |Actual Complete Exam |Already Graded A+
(Just Released)
IFRS Conceptual Framework ✔Correct Answer-1. Fundamental characteristics of financial
statements are relevance and faithful representation.
2. Elements of financial statements are assets, liabilities, and owners' equity (for measuring financial
position) and income and expenses (for measuring performance)
3. Constraints on financial statement preparation include cost versus benefit and the difficulty of
capturing non-quantifiable information in financial statements
4. The two primary assumptions that underlie the preparation of financial statements are the accrual
basis and the going concern assumption
Describe the role of financial reporting and financial statement analysis ✔Correct Answer-The role
of financial reporting is to provide users with information about a company's performance and
financial position
The role of financial statement analysis is to utilize financial statements to aid users in making
economic decisions
Describe the objective of audits of financial statement ✔Correct Answer-The objective of audits is
to provide an opinion on financial statements' fairness and reliability
What are the type of audit reports? ✔Correct Answer-1. Unqualified: The best kind of opinion. No
departures from GAAP
2. Qualified: Mostly ok. Just a few things that the auditor points out.
3. Disclaimer of opinion: The auditor can't give an opinion for some reason.
4. Adverse opinion: Really bad. Significant departures from GAAP
What are some information sources that analysts use beside annual reports? ✔Correct Answer-
Quarterlies, Semiannual reports, proxy statements, earnings calls, press releases, third party industry
reports
What are the steps in the financial statement analysis framework? ✔Correct Answer-1. State
objective of analysis
2. Gather data
3. Process data
4. Analyze data
5. Report the conclusions or recommendations
6. Update analysis
, Describe the importance of financial reporting standards in security analysis and valuation
✔Correct Answer-Financial reporting standards are designed to ensure that different firms'
statements are comparable to one another
Describe the role of financial reporting standard-setting bodies ✔Correct Answer-The role of
financial reporting standard-setting bodies is to create a set of reporting standards that companies
abide by. The two main standard-setting bodies are the FASB in the US and the IASB for the rest of
the world.
Describe the role of financial regulatory bodies ✔Correct Answer-Financial regulatory bodies
enforce compliance with the reporting standards set forth by the standard-setting bodies. The two
main regulatory bodies are the SEC in the US and the FSA in the UK. The IOSCO is an international
collective of these regulatory bodies.
Describe the status of global convergence of accounting standards ✔Correct Answer-Global
convergence is well on its way, with more and more countries adopting IASB standards.
What are some ongoing barriers to developing one universally accepted set of financial reporting
standards? ✔Correct Answer-1. Changes of opinion among standard-setting bodies and financial
regulatory agencies
2. Political pressure within countries by groups that would be affected by changes
IASB Conceptual Framework: Fundamental Characteristics ✔Correct Answer-The fundamental
characteristics are:
1. Relevance
2. Faithful Representation
IASB Conceptual Framework: Enhancing Characteristics ✔Correct Answer-The enhancing
characteristics are:
1. Comparability
2. Verifiability
3. Timeliness
4. Understandability
IASB Conceptual Framework: Required Reporting Elements ✔Correct Answer-1. Assets
2. Liabilities
3. Owners' Equity
4. Income
5. Expenses
IASB Conceptual Framework: Constraints on financial statement preparation ✔Correct Answer-
Constraints Include:
1. Cost vs. benefit
2. Difficulty of capturing non-quantifiable information in the statements
IASB Conceptual Framework: Two Primary Assumptions ✔Correct Answer-1. The entity is a going
concern
2. Accrual basis
