CFA Financial Statements Exam
Questions and Answers Graded A+
Before a company's financial statements can be published, an opinion on the
fairness of the presentation of the statements must be provided b - Correct answer-
auditors
Which of the following groups issues an opinion on the correctness and
presentation of a company's financial statements - Correct answer-Auditors
International financial reporting standard setting is moving in the direction of
having - Correct answer-a compatible set of high-quality standards across countries
With respect to issuance of a company's financial statements, the role of market
regulators, such as the SEC, is to - Correct answer-support and enforce the
adoption and use of financial reporting standards
One of the current trends in accounting standard setting is to - Correct answer-have
countries' standards converge to a compatible set of standards
An example of a current liability is - Correct answer-wages earned but unpaid
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, When a company earns a profit and does not distribute any portion of that profit to
its owners, the result is an increase in - Correct answer-retained earnings
The process of allocating the cost of a long-term asset over its useful life as an
expense on the income statement is called - Correct answer-depreciation
On a company's balance sheet, in order for the equity section to more closely
reflect the current market value of the company's shares, the company would have
to - Correct answer-report its assets and liabilities at fair value
If a company sells goods on credit, at the time of the sale there will also be an
increase in - Correct answer-accounts receivable
Which of the following describes the net book value of a long-term asset - Correct
answer-The gross value of an asset minus its accumulated depreciation
Which of the following is classified as a current asset on a company's balance sheet
- Correct answer-Inventory
Which of the following terms describes credit extended to a company by its
suppliers - Correct answer-Accounts payable
The financial statement that provides information about the resources that a
company controls is called the statement of - Correct answer-financial position
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Questions and Answers Graded A+
Before a company's financial statements can be published, an opinion on the
fairness of the presentation of the statements must be provided b - Correct answer-
auditors
Which of the following groups issues an opinion on the correctness and
presentation of a company's financial statements - Correct answer-Auditors
International financial reporting standard setting is moving in the direction of
having - Correct answer-a compatible set of high-quality standards across countries
With respect to issuance of a company's financial statements, the role of market
regulators, such as the SEC, is to - Correct answer-support and enforce the
adoption and use of financial reporting standards
One of the current trends in accounting standard setting is to - Correct answer-have
countries' standards converge to a compatible set of standards
An example of a current liability is - Correct answer-wages earned but unpaid
©COPYRIGHT 2025, ALL RIGHTS RESERVED 1
, When a company earns a profit and does not distribute any portion of that profit to
its owners, the result is an increase in - Correct answer-retained earnings
The process of allocating the cost of a long-term asset over its useful life as an
expense on the income statement is called - Correct answer-depreciation
On a company's balance sheet, in order for the equity section to more closely
reflect the current market value of the company's shares, the company would have
to - Correct answer-report its assets and liabilities at fair value
If a company sells goods on credit, at the time of the sale there will also be an
increase in - Correct answer-accounts receivable
Which of the following describes the net book value of a long-term asset - Correct
answer-The gross value of an asset minus its accumulated depreciation
Which of the following is classified as a current asset on a company's balance sheet
- Correct answer-Inventory
Which of the following terms describes credit extended to a company by its
suppliers - Correct answer-Accounts payable
The financial statement that provides information about the resources that a
company controls is called the statement of - Correct answer-financial position
©COPYRIGHT 2025, ALL RIGHTS RESERVED 2
