Exam (elaborations)
Comprehensive Questions & Answers Chartered Financial Analyst (CFA)
- Course
- Institution
Comprehensive Questions & Answers Chartered Financial Analyst (CFA)
[Show more]
Seller
Follow
Content preview
Comprehensive Questions &Answers Chartered Financial
Analyst (CFA)
Comprehensive Income - //It is a more inclusive measure that
includes all changes in equity except for owner contributions and
distributions. That is, comprehensive income is the sum of net
income and other comprehensive income.
Other Comprehensive Income - //Are all costs and gains from
items not in the income statement. Items such as:
1 . Foreign currency translation gains and losses.
2. Adjustments for minimum pension liability.
3 . Unrealized gains and losses from cash flow hedging
derivatives.
4 . Unrealized gains and losses from available-for-sale securities.
Available-for-sale securities - //They are not expected to be held
to maturity. The appreciation or loss is reported on the Stock
Holder's Equity as a component of comprehensive income.
Barter Transactions - //Revenue from barter transactions can only
be recognized if its fair value can be estimated from historical
data on similar non-barter transactions.
Aggressive Revenue Reporting - //is when revenue is reported
earlier, which will inflate current period revenue reporting,
, Percentage of Completion method is more aggressive than
completed contract method.
Basic EPS - //= [Net Income - Preferred Dividends]/ [Weighted
Avg. Number of Shares Outstanding]
Assets - //Resources controlled as a result of past transactions
that are expected to provide future economic benefit
Liabilities - //Obligations as a result of past events that are
expected to require an outflow of economic resources
Equity - //The owners' residual interest in the assets after
deducting the liabilities. Also known as: Stockholders' equity,
shareholders' equity, or net assets
What are the limitations of the balance sheet in financial analysis?
- //For example, some assets are reported at historical cost, some
are reported at amortized cost, and others may be reported at fair
value. There are numerous valuation bases. Even if the balance
sheet was reported at fair value, the value may have changed
since the balance sheet date. Also, there are a number of assets
and liabilities that do not
appear on the balance sheet but certainly have value. For
example, the value of a firm's employees and reputation is not
reported on the balance sheet.
Liquidity - //The ability to meet short-term obligations
Solvency - //The ability to meet long-term obligations.
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller williecaroline11. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $9.99. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
84866 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now