Exam Details

  • Exam Code
    :CFA-LEVEL-1
  • Exam Name
    :CFA Level I - Chartered Financial Analyst
  • Certification
    :CFA Institute Certifications
  • Vendor
    :CFA Institute
  • Total Questions
    :3960 Q&As
  • Last Updated
    :Jul 07, 2025

CFA Institute CFA Institute Certifications CFA-LEVEL-1 Questions & Answers

  • Question 2291:

    In its 1996 income statement, Coopers Co. reported income before income taxes of $300,000. Coopers estimated that, because of permanent differences, taxable income for 1996 would be $280,000. During 1996, Coopers made estimated tax payments of $50,000, which were charged to income tax expense. Coopers is subject to a 30% tax rate. What amount should Coopers report as income tax expense?

    A. $84,000

    B. $40,000

    C. $34,000

    D. $90,000

    E. $50,000

  • Question 2292:

    Current liabilities are recorded at ________.

    A. their market value

    B. their present value

    C. their maturity value

    D. the lower of cost or market value

  • Question 2293:

    Which of the following is/are revenue recognition methods?

    I. Cost Recovery Method

    II. Installment Method

    III. Sales Cost Method

    IV.

    Successful Efforts Method

    A.

    II, III and IV

    B.

    I and II

    C.

    I, II and III

    D.

    III and IV

  • Question 2294:

    Which of the following is/are true under accrual accounting?

    I. Revenues are recognized when goods are delivered.

    II. Revenues are recognized when cash is received.

    III. Revenues are recognized in proportion to expenditures incurred.

    IV.

    Revenues are matched with the associated costs.

    A.

    II and IV

    B.

    I, III and IV

    C.

    II and III

    D.

    I and IV

  • Question 2295:

    Which of the following does not affect a firm's cash flows:

    A. warranty expenses.

    B. sale of an "impaired" asset.

    C. purchase of a trademark financed by stock issuance.

    D. change of depreciation method.

  • Question 2296:

    Which of the following expenses can be capitalized?

    I. Research costs incurred in developing a new medicine.

    II. Purchase of intangibles for RandD activities which have alternative future uses.

    III.

    Salaries of research personnel.

    A.

    II only

    B.

    I and II

    C.

    III only

    D.

    none of them

  • Question 2297:

    The statement of cash flows provides us with important clues on all of the following except:

    A. Financial practices of management.

    B. Projected changes for the following year in current liability accounts.

    C. Feasibility of financing capital expenditures.

    D. Ability to meet debt service requirements.

  • Question 2298:

    Stock splits have the following effects on the financial statements:

    A. contributed capital and retained earnings are unchanged

    B. all of these answers are correct

    C. the account title for common stock changes to reflect the change in the par value of stock

    D. disclosures about the stock on the balance sheet are changed to reflect the additional outstanding shares and the revised par value per share

  • Question 2299:

    Birch Ltd. had net income for the year of $101,504 and a simple capital structure consisting of the following common shares outstanding:

    Months Outstanding Number of Shares

    January - February 24,000 March - June 29,400 July - November 36,000 December 35,040

    Birch's earnings per share (rounded to the nearest cent) were ________.

    A. $2.90

    B. $3.45

    C. $4.23

    D. $3.20

    E. $3.25

  • Question 2300:

    A firm had retained earnings of $100,000 at the beginning of the year. During the year, the firm had a net income of $55,000 and paid dividends worth $20,000. Then, the change in the firm's retained earnings equals ________.

    A. $155,000

    B. $35,000

    C. $55,000

    D. $135,000

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