CFA Exam 108 Questions with Answers 2023,100% CORRECT
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Course
CFA
Institution
CFA (CFA)
CFA Exam 108 Questions with Answers 2023
Equity equals: - CORRECT ANSWER Assets - Liabilities = Equity
(4)Shareholders' equity reported on the balance sheet is most likely to differ from the market value of shareholders' equity because: - CORRECT ANSWER B)Some factors that affect the genera...
(4)Shareholders' equity reported on the balance sheet is most likely to differ from
the market value of shareholders' equity because: - CORRECT ANSWER B)Some
factors that affect the generation of future cash flows are excluded.
(8)All of the following are current assets except: - CORRECT ANSWER B)goodwill.
(9)The most likely costs included in both the cost of inventory and property, plant,
and equipment are: - CORRECT ANSWER C) delivery costs.
(10)Debt due within one year is considered: - CORRECT ANSWER A)current.
(13)The carrying value of inventories reflects: - CORRECT ANSWER C) the lower of
historical cost or net realizable value.
(15)Accrued expenses (accrued liabilities) are: - CORRECT ANSWER C) expenses
that have been reported on the income statement but not yet paid.
(17)Defining total asset turnover as revenue divided by average total assets, all
else equal, impairment write-downs of long-lived assets owned by a company will
most likelyresult in an increase for that company in: - CORRECT ANSWER C)both
the debt-to-equity ratio and the total asset turnover.
(23)The item "retained earnings" is a component of: - CORRECT ANSWER
C)shareholders' equity.
(24)When a company buys shares of its own stock to be held in treasury, it
records a reduction in: - CORRECT ANSWER B)both assets and shareholders'
equity.
, (25)Which of the following would an analyst most likely be able to determine
from a common-size analysis of a company's balance sheet over several periods? -
CORRECT ANSWER B)An increase or decrease in financial leverage.
(26)An investor concerned whether a company can meet its near-term obligations
is most likely to calculate the: - CORRECT ANSWER A)current ratio.
(27)The most stringent test of a company's liquidity is its: - CORRECT ANSWER
A)cash ratio.
(28)An investor worried about a company's long-term solvency would most likely
examine its: - CORRECT ANSWER C) debt-to-equity ratio.
(31)Based on Exhibit 1, which statement is most likely correct? - CORRECT
ANSWER C)Company A has made one or more acquisitions.
(33)Based on Exhibit 1, the financial leverage ratio for Company B is closest to: -
CORRECT ANSWER C)2.22.
(34)Based on Exhibit 1, which ratio indicates lower liquidity risk for Company A
compared with Company B? - CORRECT ANSWER A)Cash ratio
1. The three factor DuPont Analysis is comprised of - CORRECT ANSWER a. Asset
turnover, profit margin, financial leverage
1. Within the Dupont Analysis - CORRECT ANSWER a. An increase in financial
leverage is met with an increase in the use of debt.
1. In DuPont Analysis where the financial leverage has consistently increased over
the past several years - CORRECT ANSWER a. The ROE will be higher than the
ROA.
1. The current ROA of a firm is 13% and it has an Equity Multiplier of 3.0. The
resulting ROE will be approximately - CORRECT ANSWER a. 39%
1. The ACME Company has current sales of $2,340,000 and Total Assets of
$990,000. It also has earnings of $250,000, and Total Equity of $750,000. The
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