CFA Institute CFA LEVEL I
Q: 1
Simon Steel Inc. had the following unusual financial events occur this year: Bonds payable were
retired 5 years before their scheduled maturity, resulting in a $260,000 gain, Simon has frequently
retired bonds early when interest rates declined significantly. A steel forming segment suffered
$255,000 in losses from hurricane damage. This was the fourth similar loss sustained in a 5-year
period at that location. A segment of Simon's operations, steel transportation, was sold at a net loss
of $350,000. This was Simon's first divestiture of one of its operating segments. Before income taxes,
what amount should be disclosed as the gain (loss) from extraordinary times for this year?
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Q: 2
Assume you buy a computer for $1,450 and agree to pay for it with 36 monthly payments of $55,
beginning next month. What is the size of the final payment needed at month 36 to completely pay
off the computer, if the interest rate you are being charged is 16% per year, compounded monthly?
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Q: 3
When a researcher uses the classes 129-147, 147-165, 165-183 to create a distribution, he is violating
which of the following suggested practices?
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Q: 4
Which of the following statements is correct?
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Q: 5
When creating composites, ________ returns must not be mixed with asset-plus-cash returns.
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Q: 6
James Morrison is a profit-seeking banker. His bank has $25 million in excess reserves. Mr. Morrison
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Q: 7
The Jones company had a net receivable balance at the beginning of 1998 of $350,000 and ended
1998 with a receivable balance of $400,000. During the year the company had credit sales of
$1,000,000 and cash sales of $200,000. How much cash did the company collect during 1998?
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Q: 8
Examples of Common Stock Equivalents (CSE's) include all of the following except:
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Q: 9
Which one of the following will most likely reduce aggregate supply?
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Q: 10
Which of the following is/are true about Goodwill?
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Question 1 of 10
