CFA Level 1 Practice Test 55 Questions Answer Keys AMBIPi

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.

CFA Notes Materials and QBanks

CFA Level 1 Notes
CFA Level 1 QBank: 1 to 10CFA Level 1 QBank: 11 to 20
CFA Level 1 QBank: 21 to 30CFA Level 1 QBank: 31 to 40
CFA Level 1 QBank: 41 to 50CFA Level 1 QBank: 51 to 60
CFA Level 1 QBank: 61 to 70CFA Level 1 QBank: 71 to 80
CFA Level 1 QBank: 81 to 90CFA Level 1 QBank: 91 to 100
CFA Level 1 QBank: 101 to 110CFA Level 1 QBank: 111 to 120
CFA Level 1 QBank: 121 to 130CFA Level 1 QBank: 131 to 140
CFA Level 1 QBank: 141 to 150CFA Level 1 QBank: 151 to 160
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CFA Level 1 QBank: 281 to 290CFA Level 1 QBank: 291 to 300
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CFA Level 1 QBank: 541 to 550CFA Level 1 QBank: 551 to 560
CFA Level 1 QBank: 561 to 570CFA Level 1 QBank: 571 to 580
CFA Level 1 QBank: 581 to 590CFA Level 1 QBank: 591 to 600
CFA Level 1 QBank: 601 to 610CFA Level 1 QBank: 611 to 620

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