CFA Level 1- Financial Statement Analysis Study Questions with Correct Answers 2024/2025

CFA Level 1- Financial Statement Analysis Study Questions with Correct Answers 2024/2025 Financial Reporting - Correct Answer Refers to the way companies show their financial performance to investors, creditors, and other interested parties by preparing and presenting financial statements. Role of financial statement analysis - Correct Answer Use the information in a company's financial statements, along with other relevant information, to make economic decisions. Balance sheet (statement of financial position/ condition) - Correct Answer Reports the firm's financial position at a point in time. Fundamental accounting equation: - Correct Answer Assets= liabilities + owner's equity Capital structure - Correct Answer Proportions of liabilities and equity used to finance a company. Statement of comprehensive income - Correct Answer Reports all changes in equity except for shareholder transactions. Income statement (statement of operations or p/ statement) - Correct Answer Reports on the financial performance of the firm over a period of time. Statement of changes in equity - Correct Answer Reports the amounts and sources of changes in equity investors' investment in the firm over a period of time. Statement of cash flows - Correct Answer Reports the company's cash receipts and payments. Operating cash flows - Correct Answer Include the cash effects of transactions that involve the normal business of the firm. Investing cash flows - Correct Answer Those resulting from the acquisition or sale of property, plan, and equipment; of a subsidiary or segment; of securities; and of investments in other firms.