Cfa Level 1 Accounting Exam Questions With 100% Correct And Verified Answers 2025

Cfa Level 1 Accounting Exam
Questions With 100% Correct And
Verified Answers 2025

FinancialiReportingi-iCORRECTiANSWERS-
provideifinancialiinfo.iaboutitheireportingientityithatiisiusef
ulitoiexistingiandipotentialiinvestors,ilenders,iandiothericred
itorsiinimakingidecisionsiaboutiprovidingiresourcesitoitheie
ntity.iDecisionsiareibuying,iselling,ioriholdingidebtiandiequit
y,iloansioricredit

balanceisheeti-iCORRECTiANSWERS-
statementiofifinancialipositionioricondition.
atiaipointiinitime
assets:iresourcesicontrolledibyifirm
liabilities:iamountsioweditoilendersioricreditors
equity:iresidualiinterestiinitheinetiassetsiofianientityiafteride
ductingiliabilities
Ai=iLi+iSE

statementioficomprehensiveiincomei-iCORRECTiANSWERS-
reportsiallichangesiiniequityiexceptiforishareholderitransact
ionsi(stockiissuance,irepurchases,iandidividends)

incomeistatementi-iCORRECTiANSWERS-
profitiandilossiorioperations.iperformanceioveriaiperiodiofiti
me
-revenues,iexpenses,igainsiandilosses.
-
otheriincomeiincludesigainsithatimayinotiariseiinitheiordinar
yicourseiofibusiness
IFRS:iIncomeistatementicanibeicombinediwithiothericompre
hensiveiincomeiandipresentediasiaisingleistatementioficomp
rehensiveiincomeioriseparately


vendarsol

,GAAP:isameiforigaapibutifirmsicanialsoichooseitoireporticom
prehensiveiincomeiinitheistatementiofiSE

statementiofichangesiiniequityi-iCORRECTiANSWERS-
reportsitheiamountsiandisourcesiofichangesiiniequityiinvesto
rsiinvestmentiinitheifirmioveriaiperiodiofitime

statementioficashiflowsi-iCORRECTiANSWERS-
reportsitheicompanysicashireceiptsiandipayments
operating:icashieffectsiofinormalibusinessitransactions
investing:iacquisitioniorisaleiofiPPE,isubsidiary,securities
financing:iissuanceioriretirementiofitheifirmsidebtiandiequit
yisecuritiesiandidividendsipaidiout

financialistatementinotesi-iCORRECTiANSWERS-
footnotes:idisclosuresiprovideifurtheridetailsiaboutitheiinfo.i
summarizediinitheifinancialistatements.i
-discussibasisiofipresentationisuchiasifiscaliperiod/
consolidatedientities
-info.ioniacctgimethods,iassumptions,iandiestimates
-acquisitions/
disposals,ilegaliactions,iemployeeibenefitiplans,icontingenci
es,icommitments,isales

Managementsicommentaryi-iCORRECTiANSWERS-
report,ioperating/
financialireview,iandimanagementidiscussioniandianalysis
-
discussinatureiofitheibusiness,ipastiperformance,iandifuturei
outlook
-
SECisaysipublicicompaniesiiniUSidiscussitrends,ieventsiandi
uncertaintyiaffectingiliquidity,icapital,iandioperations
-inflation,ioff-
balanceisheetiobligations,iacctgipolicies,iforwardispendingie
xpendituresiandidivestitures




vendarsol

,standardiauditorsiopinioni-iCORRECTiANSWERS-
1.iwhereasitheiFSiareipreparedibyiMGMTiandiareiitsiresponsi
bility,itheiauditorihasiperformedianiindependentireview
2.iprovidingireasonableiassuranceithatitheiFSicontaininoima
terialierrors
3.iauditoriisisatisfiedithatistatementsiwereipreparediiniaccor
danceiwithiacceptediacctgiprinciplesiandithereiareireasonab
leiestimates.

unqualifiediopinioni-iCORRECTiANSWERS-
cleaniopinionibyiauditoribelievingitheistatementsiareifreeifro
mimaterialiomissionsiandierrors

qualifiediopinioni-iCORRECTiANSWERS-
statementsimakeianyiexceptionsitoitheiacctgiprinciplesitheia
uditoriexplainsithese

adverseiopinioni-iCORRECTiANSWERS-
statementsiareinotipresentedifairlyioriareimateriallyinonconf
ormingiwithiacctgistandards

disclaimeriofiopinioni-iCORRECTiANSWERS-
auditoriisiunableitoiexpressianiopinion

internalicontrolsi-iCORRECTiANSWERS-
processesiwhereitheicompanyiensuresithatiitipresentsiaccur
ateifinancialistatements
-
USiGaapirequiresiauditoriexpressiopinionionifirmiinternalico
ntrols

proxyistatementsi-iCORRECTiANSWERS-
issueditoishareholdersiwhenithereiareimattersithatirequireiai
shareholderivote
-
infoiaboutielectioniofiboardimembers,icompensation,imanag
ementiqualifications,iandiissuanceiofistockioptions




vendarsol

, financialistatementianalysisiframework:isixistepsi-
iCORRECTiANSWERS-1.istateitheiobjectiveiandicontext

-questionsiseekingitoianswer,ipresentation,iresources
2.igatheritheidata
-acquireiFS,italkitoiMGMT,isuppliers,iandicustomers
3.iprocessitheidata
-adjustiFS,icalculateiratios,igraphs,icommon-sizeiBS
4.ianalyze/interpretitheidata
-useidataitoiansweri1stistepiquestions
5.ireportitheiconclusionsiorirecommendations
-prepareireport,icommunicateitoiaudience,i
6.iupdateitheianalysis
-
periodicallyirepeatisteps,iandichangeiconclusionsiwheninece
ssary

financialistatementielementsi-iCORRECTiANSWERS-
assets,iliabilities,iSE,irevenue,iexpenses
accountsiareispecificirecordsiwithinieachielementiwhereieac
hitransactioniisienterest

contraiaccountsi-iCORRECTiANSWERS-
entriesithatioffsetisomeipartiofitheivalueiofianotheriaccount

assets/economiciresourcesi-iCORRECTiANSWERS-
cash,icashiequivalents,iacctsireceivable,iinventory,ifinanciali
assets,iprepaidiexpenses,iPPE,iinvestmentiiniaffiliates,idefer
reditaxiassets,iintangibleiassets

Liabilitiesi-iCORRECTiANSWERS-
creditoriclaimsionitheicompany'siresources
-
acctsipayable,itradeipayables,ifinancialiliabilities,iunearnedi
revenue,iincomeitaxesipayable,ilongitermidebt,ideferreditaxil
iabilities

ownersiequityi-iCORRECTiANSWERS-
ownersiresidualiclaimioniaifirmsiresources
-capitali(commonistock)


vendarsol