Hi CFA Aspirants, welcome to AKVTutorials. Are you preparing for CFA Level 1, 2, 3 exams for making a career in CFA (Charted Financial Analyst). According to CFA Wikipedia, CFA The Chartered Financial Analyst (CFA) program is a postgraduate professional certification offered internationally by the American-based CFA Institute. A candidate who successfully completes the program and meets other professional requirements is awarded the “CFA charter” and becomes a “CFA charter holder”. Therefore, you need CFA Study Notes and CFA Level 1 Practice Test 55 Questions Answer Keys AMBIPi
In this article, you will get Free CFA Level 1 Mock Exam Practice Questions.
Free CFA Level 1 Mock Practice Exam Questions Bank
Free CFA Level 1 Practice Question No: 541:
A company purchased a warehouse for $35 million and incurred the following additional costs in getting the warehouse ready to use:
- $2.0 million for repairs to the building’s roof and windows
- $0.5 million to modify the interior layout to meet their needs (moving walls and doors, inserting and removing partitions, etc.)
- $0.1 million on an orientation and training session for employees to familiarize them with the facility
The cost to be capitalized to the building account (in millions) is closest to:
Option A : $37.6
Option B : $37.5
Option C : $37.0
Show/Hide Answer
Option B : $37.5
CFA Level 1 Exam Question No: 542:
Notes to financial statements most likely include:
Option A: a discussion of significant trends, events and uncertainties that affect the operating results.
Option B: supplementary information about accounting policies, methods and estimates.
Option C: an auditor’s opinion as to the fair presentation of the financial statements.
Show/Hide Answer
Option B : supplementary information about accounting policies, methods and estimates.
Free CFA Level 1 Mock Exam Question No: 543:
At the beginning of the year, a company purchased a fixed asset for $500,000 with no expected residual value. The company depreciates similar assets on a straight line basis over 10 years, whereas the tax authorities allow declining balance depreciation at the rate of 15% per year. In both cases, the company takes a full year’s depreciation in the first year and the tax rate is 40%. Which of the following statements concerning this asset at the end of the year is most accurate?
Option A: The temporary difference is $25,000.
Option B: The tax base is $500,000
Option C: The deferred tax asset is $10,000.
Show/Hide Answer
Option A : The temporary difference is $25,000.
CFA Level 1 Free Practice Question No: 544:
The following data is available on a company for the current year:
The company will most likely report other comprehensive income (OCI) (in $’000) as a:
Option A: Gain of 301,000.
Option B: Gain of 186,000.
Option C: Loss of 55,000
Show/Hide Answer
Option C : Loss of 55,000
Free CFA Practice Question No: 545:
A company that prepares its financial statements in accordance with International Financial Reporting Standards (IFRS) is attempting to produce lighter and longer-lasting batteries for portable electronic devices. The most appropriate accounting treatment for the related costs incurred in this project is to:
Option A: capitalize costs directly related to the development.
Option B: expense costs until technical feasibility has been established.
Option C: expense them as incurred.
Show/Hide Answer
Option B : expense costs until technical feasibility has been established.
CFA Level 1 Sample Question No: 546:
A company incurs the following costs related to its inventory during the year:
The amount charged to inventory cost(in millions) is closest to:
Option A: $177,000.
Option B: $175,000.
Option C: $185,000.
Show/Hide Answer
Option B : $175,000.
Free CFA Level 1 Quiz Question NO: 547:
An analyst has compiled the following information on a company:
The amount of dividends declared ($ thousands) during the year is closest to:
Option A: 150.
Option B: 650.
Option C: 300.
Show/Hide Answer
Option B : 650.
Free CFA Level 1 Quiz Question NO: 548:
Interim reports most likely:
Option A: are issued semi-annually or quarterly.
Option B: include a full set of financial statements and notes.
Option C: are audited.
Show/Hide Answer
Option A : are issued semi-annually or quarterly.
Free CFA Practice Question No: 549:
At the start of a month, a retailer paid $5,000 in cash for candies. Не sold $2,000 worth of candies for $3,000 during the month. The most likely effect of these transactions on the retailer’s accounting equation for the month is that assets will:
Option A: be unchanged.
Option B: decrease by $2,000.
Option C: increase by $1,000.
Show/Hide Answer
Option C : increase by $1,000.
CFA Mock Exam Free Question No: 550:
The use of estimates in financial reporting is best described as:
Option A: acceptable despite the risk of manipulation by management.
Option B: a factor that reduces the understandability of financial statements.
Option C: avoidable through sophisticated accounting and auditing techniques.
Show/Hide Answer
Option A : acceptable despite the risk of manipulation by management.
