CFA Level 1 Practice Questions — All Questions
AllEthical & Professional StandardsQuantitative MethodsFinancial Reporting & AnalysisCorporate IssuersInvestment Tools (Equity & Fixed Income)
4 questions
Financial Reporting & Analysis
Which statement reports a company's financial position at a point in time?
- a.Income statement
- b.Cash flow statement
- c.Statement of changes in equity
- d.Balance sheet✓
The balance sheet shows assets, liabilities, and equity at a point in time.
Financial Reporting & Analysis
Under accrual accounting, revenue is recognized when it is:
- a.Taxed
- b.Received in cash
- c.Budgeted
- d.Earned, regardless of when cash is received✓
Accrual accounting recognizes revenue when earned, not when cash arrives.
Financial Reporting & Analysis
The basic accounting equation is:
- a.Assets = Revenue - Expenses
- b.Equity = Assets + Liabilities
- c.Assets = Liabilities - Equity
- d.Assets = Liabilities + Equity✓
Assets equal liabilities plus owners' equity.
Financial Reporting & Analysis
Which statement explains the change in a company's cash over a period?
- a.Statement of retained earnings
- b.Income statement
- c.Balance sheet
- d.Cash flow statement✓
The cash flow statement reconciles operating, investing, and financing cash flows.