CFA (Chartered Financial Analyst) Level 1 FRA practice Concepts with Complete Solutions.

A priori probability Correct Answer A probability based on logical analysis rather than on observation or personal judgment. Abnormal profit Correct Answer Equal to accounting profit less the implicit opportunity costs not included in total accounting costs; the difference between total revenue (TR) and total cost (TC). Absolute advantage Correct Answer A country's ability to produce a good or service at a lower absolute cost than its trading partner. Absolute dispersion Correct Answer The amount of variability present without comparison to any reference point or benchmark. Absolute frequency Correct Answer The number of observations in a given interval (for grouped data). Accelerated book build Correct Answer An offering of securities by an investment bank acting as principal that is accomplished in only one or two days. Accelerated methods Correct Answer Depreciation methods that allocate a relatively large portion of the cost of an asset to the early years of the asset's useful life. Accounting (or explicit) costs Correct Answer Payments to non-owner parties for services or resources they supply to the firm. Accounting loss Correct Answer When accounting profit is negative. Accounting profit Correct Answer Income as reported on the income statement, in accordance with prevailing accounting standards, before the provisions for income tax expense. Also called income before taxes or pretax income. Accounts Correct Answer With the accounting systems, a formal record of increases and decreases in a specific asset, liability, component of owners' equity, revenue, or expense. Accounts receivable turnover Correct Answer Ratio of sales on credit to the average balance in accounts receivable.