CFA Level I — Financial Reporting & Analysis　考古題與解析

(A)Incorrect. 0.11 inverts the ratio.

(B)Incorrect. 40.6 is days of sales outstanding, 365 / 9.0.

(C)Correct. Receivables turnover = revenue / average receivables = 3,600 / 400 = 9.0 times.

(A)Incorrect. Dividend policy is a competing use of the same cash, not a measure of repayment capacity.

(B)Correct. It is a core rating-agency metric, expressing debt as a multiple of the cash the business reliably produces before working capital swings.

(C)Incorrect. Valuation is a market judgement about the equity, not a measure of the cash available to service debt.

(A)Incorrect. Both presentations are permitted, but that is precisely why they are not comparable as reported.

(B)Correct. Comparability requires a single consistent convention; the analyst restates one company to match the other before computing CFO-based ratios.

(C)Incorrect. Interest paid was never deducted from the IFRS company's CFO, so adding it back there double-counts and overstates operating cash flow.

(A)Incorrect. USD 280 stops at cash from customers less operating payments, omitting interest and tax.

(B)Incorrect. USD 250 omits the taxes paid.

(C)Correct. 900 - 620 - 30 - 55 = USD 195, assuming interest paid is classified as operating.

(A)Incorrect. The full contract price is recognised only when the performance obligation is fully satisfied.

(B)Incorrect. USD 2.0 million is the cost incurred, not the revenue; recognising cost as revenue would report zero profit.

(C)Correct. Progress = 2 / 8 = 25%; revenue = 25% x 10 million = USD 2.5 million, giving USD 0.5 million of profit to date.

(A)Incorrect. That rule applies to non-cumulative preferred shares.

(B)Correct. Cumulative preferred dividends accrue to the preferred holders regardless of declaration, so the full periodic entitlement reduces income available to common shareholders.

(C)Incorrect. Undeclared cumulative dividends are generally not recognised as a liability, but they still reduce the EPS numerator.

(A)Incorrect. Substituting a different ratio does not resolve the misstatement of coverage.

(B)Incorrect. Capitalised interest is still a cash obligation to lenders; excluding it flatters the coverage ratio.

(C)Correct. Total interest incurred, whether expensed or capitalised, is the economically relevant charge; analysts adjust both the denominator and, if appropriate, EBIT for the depreciation of capitalised interest.

(A)Correct. A systematic pattern of disposal gains means carrying amounts are consistently below realisable value, which points to overly short useful lives or understated residual values.

(B)Incorrect. Too little depreciation would leave carrying amounts above realisable value and produce disposal losses, not gains.

(C)Incorrect. Revaluation would move carrying amounts toward fair value, eliminating systematic gains.

(A)Correct. A shrinking reserve against a slower-paying book releases prior charges into income and is a well-known earnings-management pattern.

(B)Incorrect. Reducing reserves in the face of deteriorating collection metrics is aggressive, not conservative.

(C)Incorrect. Genuinely improving credit quality would normally shorten, not lengthen, the collection period.

(A)Incorrect. Deferred revenue is precisely the amount not yet recognised as revenue.

(B)Incorrect. Falling deferred revenue is the warning sign, since it signals a shrinking contracted backlog.

(C)Correct. Deferred revenue is cash already collected against obligations still to be performed, so it represents revenue with high visibility.

(A)Correct. 5,000 + 300 + 250 - 200 + 100 = USD 5,450. Benefits paid reduce the obligation; an actuarial loss increases it.

(B)Incorrect. USD 5,850 adds the benefits paid instead of deducting them.

(C)Incorrect. USD 5,250 omits the actuarial loss and mishandles a component.

(A)Incorrect. Outward freight and selling commissions are incurred after the inventory is ready for sale and are period expenses.

(B)Correct. Inward freight is a cost of purchase, along with the purchase price, import duties, and non-recoverable taxes, net of trade discounts and rebates.

(C)Incorrect. Administrative overhead not related to bringing inventories to their present location and condition is expensed.

(A)Incorrect. A direct charge to retained earnings is not the route for revaluation tax, which IAS 12 sends to OCI alongside the gain itself.

(B)Incorrect. Not every deferred tax movement reaches tax expense; routing this one through profit or loss while the gain sits in OCI would break the matching of an item with its tax effect.

(C)Correct. IAS 12 requires the tax effect to follow the item: tax on OCI items goes to OCI, tax on items in equity goes to equity.

(A)Incorrect. Liquidity ordering is a permitted presentation choice for entities where it is more relevant.

(B)Incorrect. Completeness is a defining characteristic of a high-quality balance sheet.

(C)Correct. Balance sheet quality requires completeness, unbiased measurement, and clear presentation; structures that keep real obligations off the statement fail the first of these.

(A)Incorrect. International auditing standards are issued by the IAASB.

(B)Incorrect. IFRS is issued by the IASB.

(C)Correct. FASB issues US GAAP through the Accounting Standards Codification, with authority delegated by the SEC for public issuers.

(A)Correct. Anchoring on the observed range and then adjusting explicitly for input cost trends, mix shift, and pricing power keeps the forecast disciplined and auditable.

(B)Incorrect. Assuming convergence to best-in-class performance without an identified reason is unsupported optimism.

(C)Incorrect. A single quarter embeds seasonality and one-off effects, and extrapolating it carries both into every forecast year.

(A)Correct. The single-line presentation hides both the associate's debt and the composition of its earnings; where the stake is strategically material, understanding it is necessary even without a formal restatement.

(B)Incorrect. Equity-method income is genuine earnings of the investor; the cash timing question belongs in the cash flow statement, not in deleting the income.

(C)Incorrect. Full consolidation would overstate the investor's control and its claim on the associate's assets and cash flows.

(A)Correct. It is unaudited; the auditor's responsibility is limited to reading it and considering material inconsistency with the audited statements.

(B)Incorrect. IFRS Practice Statement 1 encourages management commentary, forward-looking discussion included; it is not prohibited.

(C)Incorrect. The audit opinion covers the primary financial statements; MD&A is generally outside its scope.

(A)Correct. eXtensible Business Reporting Language tags each reported figure to a taxonomy element, which is what allows bulk extraction and cross-company screening.

(B)Incorrect. It has no role in audit methodology.

(C)Incorrect. XBRL is a data format, not a recognition or measurement standard.

(A)Incorrect. USD 100 has no basis in either method.

(B)Correct. Full goodwill = consideration + fair value of NCI - fair value of identifiable net assets = 800 + 190 - 900 = USD 90.

(C)Incorrect. USD 80 is partial goodwill, 800 - (80% x 900), which is the alternative IFRS measurement.