10 Free CFA Level 1 Mock Exam Questions and Answers on Financial Reporting and Analysis

Practice 10 Free CFA Level 1 Mock Exam Questions and Answers on Financial Reporting and Analysis right now to extensively understand Financial Reporting and Analysis topic area in the CFA exam. Through various multiple choice questions with prompt answers, it’s trouble-free to interpret three financial statements including balance sheet, income statement and cash flow statement which are around the main requirement in this topic.
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- interim reports: quarterly financial statement reports- proxy statements: as a part of integral part, in Financial FootNotes. It related to litigation, excutive compensation,shareholder meeting note...

• Types of assets
• interim reports , proxy statements
• Cash Flow Statement
• Types of audit reports

- Financial FootNotes: thuyết minh BCTC- Supplementary Schedules: give data from outside of company (ex: oil price ... effect on firm's revenue, income.....)

• Accounting Process
• Financial FootNotes and Supplementary Schedules
• interim reports , proxy statements
• When a element should be recognize?

1.Purpose2.Collect3.Process4.Analyse5.Conclusion6.Follow up (the conclusion)

• Types of assets
• Types of audit reports
• Effective financial reporting framework
• Steps in financial analysis framework

• Current asset: cash, marketable securities, AR, Inventories and Prepaid expense ( One-Year Cycle)• Long-term investments• Property, plant, and equipment (Fixed Assets) ( depreciation expense on IS )• Intangible assets ( amortized expense on IS )

• Owner's Equity
• Cash Flow Statement
• Types of assets
• Types of audit reports

- Transparency- Comprehensiveness- Consistency

• Steps in financial analysis framework
• Matching Principle in Accounting
• Types of audit reports
• Effective financial reporting framework

In accrual accounting, the matching principle states that expenses should be recorded during the period in which they are incurred, regardless of when the transfer of cash occurs- Accrued expense allows one to match future costs of products with the proceeds from their sales prior to paying out such costs.- Deferred expense (prepaid expense) allows one to match costs of products paid out and not received yet.- Depreciation matches the cost of purchasing fixed assets with revenues generated by them by spread

• Accounting equations
• Matching Principle in Accounting
• Cash Flow Statement
• Contra-asset account

- it is Probable occur- can be measure

• Adjustment entries
• When a element should be recognize?
• Contra-asset account
• Types of audit reports

- Unqualified opinion report -> Clean report- Qualified opinion report -> contain exception of Accounting principles- Adverse opinion -> not fairly financial presentation- Disclaimer of opinion -> Unable to express opinion

• Cash Flow Statement
• Types of audit reports
• Adjustment entries
• Types of assets

An account of asset that reduce the asset value ( at Credit Side of Ledger)Ex: Accumulated Depreciation Account

• Cash Flow Statement
• Accounting equations
• Types of assets
• Contra-asset account

Owner's Equity = Contributed Capital + Retained Earnings

• Adjustment entries
• Types of assets
• Contra-asset account
• Owner's Equit
• Management Discussion and Analysis (MD&A)
• Steps in financial analysis framework
• Matching Principle in Accounting
• Three groups of business activities