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Flashcard 1430670413068

Tags

#cfa #cfa-level-1 #economics #microeconomics #reading-14-demand-and-supply-analysis-consumer-demand #study-session-4-microeconomics-analysis

Question

Demand comes from the [...] and the [...], graphically represented by the indifference curve map.

Answer

utility function

budget constraint

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ir respective negative and positive slopes. That simple model yielded some very powerful implications about how markets work, but we can delve even more deeply to explore the underpinnings of demand and supply. In this reading, we examine the theory of the consumer as a way of understanding where consumer demand curves originate. In a subsequent reading, the origins of the supply curve are sought in presenting the theory of the firm.

Original toplevel document

1. INTRODUCTION
r most fundamental models, the model of demand and supply. And as we have seen, models begin with simplifying assumptions and then find the implications that can then be compared to real-world observations as a test of the model’s usefulness. In the model of demand and supply, we assumed the existence of a demand curve and a supply curve, as well as their respective negative and positive slopes. That simple model yielded some very powerful implications about how markets work, but we can delve even more deeply to explore the underpinnings of demand and supply. In this reading, we examine the theory of the consumer as a way of understanding where consumer demand curves originate. In a subsequent reading, the origins of the supply curve are sought in presenting the theory of the firm. This reading is organized as follows: Section 2 describes consumer choice theory in more detail. Section 3 introduces utility theory, a building block of consumer choice th

Flashcard 1438270491916

Tags

#analyst-notes #cfa-level-1 #corporate-finance #reading-35-capital-budgeting #study-session-10

Question

[...] income calculations reflect non-cash items and ignore the time value of money.

Answer

Accounting

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d>Accounting profits only measure the return on the invested capital. Accounting income calculations reflect non-cash items and ignore the time value of money. They are important for some purposes, but for capital budgeting, cash flows are what are relevant. Economic income is an investment's after-tax cash flow plus the change in the market value. Financing costs are ignored in computing economic income. &

Original toplevel document

Subject 2. Basic Principles of Capital Budgeting
Capital budgeting decisions are based on incremental after-tax cash flows discounted at the opportunity cost of capital. Assumptions of capital budgeting are: Capital budgeting decisions must be based on cash flows, not accounting income. Accounting profits only measure the return on the invested capital. Accounting income calculations reflect non-cash items and ignore the time value of money. They are important for some purposes, but for capital budgeting, cash flows are what are relevant. Economic income is an investment's after-tax cash flow plus the change in the market value. Financing costs are ignored in computing economic income. Cash flow timing is critical because money is worth more the sooner you get it. Also, firms must have adequate cash flow to meet maturing obligations. The opportunity cost should be charged against a project. Remember that just because something is on hand does not mean it's free. See below for the definition of opportunity cost. Expected future cash flows must be measured on an after-tax basis. The firm's wealth depends on its usable after-tax funds. Ignore how the project is financed. Interest payments should not be included in the estimated cash flows since the effects of debt financing are reflected in the cost of capital used to discount the cash flows. The existence of a project depends on business factors, not financing. Important capital budgeting concepts: A sunk cost is a cash outlay that has already been incurred and which

Flashcard 1439305174284

Tags

#python #sicp

Question

locally defined functions are often called [...] because they enclose information

Answer

closures

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The sqrt_update function carries with it some data: the value for a referenced in the environment in which it was defined. Because they "enclose" information in this way, locally defined functions are often called closures.

Original toplevel document

1.6 Higher-Order Functions
r than the global environment. A local function can access the environment of the enclosing function, because the body of the local function is evaluated in an environment that extends the evaluation environment in which it was defined. The sqrt_update function carries with it some data: the value for a referenced in the environment in which it was defined. Because they "enclose" information in this way, locally defined functions are often called closures. 1.6.4 Functions as Returned Values Video: Show Hide We can achieve even more expressive power in our programs by creating functions whose returned values are themselves funct

Flashcard 1442961034508

Tags

#3-1-profit-maximization #cfa-level-1 #economics #microeconomics #reading-15-demand-and-supply-analysis-the-firm #section-3-analysis-of-revenue-costs-and-profit #study-session-4

Question

There are three approaches to calculate the point of profit maximization. All three approaches yield [...]

Answer

the same profit-maximizing quantity of output.

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ource unit with the cost of that unit. Profit contribution occurs when the revenue from an input unit exceeds its cost. The point of profit maximization is reached when resource units no longer contribute to profit. All three approaches yield the same profit-maximizing quantity of output. (These approaches will be explained in greater detail later.)<body><html>

Original toplevel document

3. ANALYSIS OF REVENUE, COSTS, AND PROFITS
Total variable cost divided by quantity; (TVC ÷ Q) Average total cost (ATC) Total cost divided by quantity; (TC ÷ Q) or (AFC + AVC) Marginal cost (MC) Change in total cost divided by change in quantity; (∆TC ÷ ∆Q) 3.1. Profit Maximization In free markets—and even in regulated market economies—profit maximization tends to promote economic welfare and a higher standard of living, and creates wealth for investors. Profit motivates businesses to use resources efficiently and to concentrate on activities in which they have a competitive advantage. Most economists believe that profit maximization promotes allocational efficiency—that resources flow into their highest valued uses. Overall, the functions of profit are as follows: Rewards entrepreneurs for risk taking when pursuing business ventures to satisfy consumer demand. Allocates resources to their most-efficient use; input factors flow from sectors with economic losses to sectors with economic profit, where profit reflects goods most desired by society. Spurs innovation and the development of new technology. Stimulates business investment and economic growth. There are three approaches to calculate the point of profit maximization. First, given that profit is the difference between total revenue and total costs, maximum profit occurs at the output level where this difference is the greatest. Second, maximum profit can also be calculated by comparing revenue and cost for each individual unit of output that is produced and sold. A business increases profit through greater sales as long as per-unit revenue exceeds per-unit cost on the next unit of output sold. Profit maximization takes place at the point where the last individual output unit breaks even. Beyond this point, total profit decreases because the per-unit cost is higher than the per-unit revenue from successive output units. A third approach compares the revenue generated by each resource unit with the cost of that unit. Profit contribution occurs when the revenue from an input unit exceeds its cost. The point of profit maximization is reached when resource units no longer contribute to profit. All three approaches yield the same profit-maximizing quantity of output. (These approaches will be explained in greater detail later.) Because profit is the difference between revenue and cost, an understanding of profit maximization requires that we examine both of those components. Revenue comes from the demand for the firm’s products, and cost comes from the acquisition and utilization of the firm’s inputs in the production of those products. 3.1.1. Total, Average, and Marginal Revenue This section briefly examines demand and revenue in preparation for addressing cost. Unless the firm is a pu

Flashcard 1602861534476

Tags

#cfa-level-1 #eps #financial-reporting-and-analysis #understanding-income-statement

Question

Diluted EPS

Net income
___________________________________
(Weighted average number of shares outstanding + [...] )

Answer

New common shares that would have been issued at conversion

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ulation plus the additional shares of common stock that would be issued upon conversion of the preferred. Thus, the formula to calculate diluted EPS using the if-converted method for preferred stock is: Equation (2) Diluted EPS Net income ___________________________________ (Weighted average number of shares outstanding + New common shares that would have been issued at conversion) A diluted EPS calculation using the if-converted method for preferred stock is provided in Example 15. <body><html>

Original toplevel document

Earnings Per Share
income) from continuing operations.46 Similar presentation is required under US GAAP.47 This section outlines the calculations for EPS and explains how the calculation differs for a simple versus complex capital structure. Simple versus Complex Capital Structure A company’s capital is composed of its equity and debt. Some types of equity have preference over others, and some debt (and other instruments) may be converted into equity. Under IFRS, the type of equity for which EPS is presented is referred to as ordinary. Ordinary shares are those equity shares that are subordinate to all other types of equity. The ordinary shareholders are basically the owners of the company—the equity holders who are paid last in a liquidation of the company and who benefit the most when the company does well. Under US GAAP, this ordinary equity is referred to as common stock or common shares , reflecting US language usage. The terms “ordinary shares,” “common stock,” and “common shares” are used interchangeably in the following discussion. When a company has issued any financial instruments that are potentially convertible into common stock, it is said to have a complex capital structure. Examples of financial instruments that are potentially convertible into common stock include convertible bonds, convertible preferred stock, employee stock options, and warrants.48 If a company’s capital structure does not include such potentially convertible financial instruments, it is said to have a simple capital structure. The distinction between simple versus complex capital structure is relevant to the calculation of EPS because financial instruments that are potentially convertible into common stock could, as a result of conversion or exercise, potentially dilute (i.e., decrease) EPS. Information about such a potential dilution is valuable to a company’s current and potential shareholders; therefore, accounting standards require companies to disclose what their EPS would be if all dilutive financial instruments were converted into common stock. The EPS that would result if all dilutive financial instruments were converted is called diluted EPS . In contrast, basic EPS is calculated using the reported earnings available to common shareholders of the parent company and the weighted average number of shares outstanding. Companies are required to report both basic and diluted EPS. For example, Danone reported basic EPS (“before dilution”) and diluted EPS (“after dilution”) of €2.57 for 2009, somewhat lower than 2008. Kraft reported basic EPS of $2.04 and diluted EPS of $2.03 for 2009, much higher than basic and diluted EPS (from continuing operations) of $1.22 and $1.21 for 2008. (The EPS information appears at the bottom of Danone’s and Kraft’s income statements.) An analyst would try to determine the causes underlying the changes in EPS, a topic we will address following an explanation of the calculations of both basic and diluted EPS. <body><html>

Flashcard 1602962197772

Tags

#analyst-notes #cfa-level-1 #financial-reporting-and-analysis #reading-26-understanding-balance-sheets

Question

The balance sheet provides information regarding the sources of finance [...]

Answer

available for projects and infrastructure.

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Subject 1. Components and Format of the Balance Sheet
d to the company by the creditors. Equity ownership is the owner's investments and the total earnings retained from the commencement of the company. Equity represents the source of financing provided to the company by the owners. The balance sheet provides users, such as creditors and investors, with information regarding the sources of finance available for projects and infrastructure. At the same time, it normally provides information about the future earnings capacity of a company's assets as well as an indication of cash flow implicit in the receivables and invento

Flashcard 1603003092236

Tags

#analyst-notes #cfa-level-1 #financial-reporting-and-analysis #reading-26-understanding-balance-sheets

Question

Balance sheet component

Obligations that are reasonably expected to be liquidated through the use of current assets within one year or within the operating cycle.

Answer

Current Liabilities

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Subject 1. Components and Format of the Balance Sheet
; Other Assets These vary widely in practice. Examples include deferred charges (long-term pre-paid expenses), non-current receivables, intangible assets, assets in special funds, and advances to subsidiaries. Current Liabilities These are obligations that are reasonably expected to be liquidated either through the use of current assets or the creation of other current liabilities within one year or within the operating cycle, whichever is longer. The excess of total current assets over total current liabilities is referred to as working capital. It represents the net amount of a company's relatively liquid resources

Flashcard 1603057093900

Tags

#cfa-level-1 #financial-reporting-and-analysis #reading-26-understanding-balance-sheets

Question

Marketable securities. Valued at [...]

Answer

cost or lower of cost and market value.

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Subject 2. Measurement Bases of Assets and Liabilities
found in the current assets section are: Cash. Valued at its stated value. Cash restricted for purpose other than payment of current obligations or for use in current operations should be excluded from the current asset section. Marketable securities. Valued at cost or lower of cost and market value. Accounts receivables. Amounts owed to the company by its customers for goods and services delivered. Valued at the estimated amount collectible. Inventories. Products that will be sold

Flashcard 1603072560396

Question

what is the meaning of life?

Answer

The MEAN stack is a popular web development stack made up of MongoDB, Express, AngularJS 2, and Node.js.

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Create a Web App and RESTful API Server Using the MEAN Stack | Heroku Dev Center
t Create the contact details template and component Update the main app template to display the contact list Finalize deployment configuration and deploy to Heroku Complete the project and deploy Summary Notes on scaling Optional next steps The MEAN stack is a popular web development stack made up of MongoDB, Express, AngularJS 2, and Node.js. MEAN has gained popularity because it allows developers to program in JavaScript on both the client and the server. The MEAN stack enables a perfect harmony of JavaScript Object Notatio

Annotation 1603075443980

Observe first that strings of different lengths cannot be permutations of each other. There are two easy ways to solve this problem, both of which use this optimization.

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pdf

cannot see any pdfs

Flashcard 1603079113996

Tags

#comedians

Question

Jon _______ and John __________ comedy central

Answer

Stewart and Oliver. Stewart is the boss.

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Flashcard 1603080949004

Tags

#broker #estate #real

Question

[...] -built housing is defined as dwellings that are not constructed at the site but are built off-site and trucked to a building lot where they are installed or assembled. [...] -built housing includes modular, panelized, precut, and mobile homes. Use of the term [...] homes was phased out with the passage of the National Manufactured Housing Construction and Safety Standards Act of 1976, when manufactured homes became federally regulated. Manufactured housing is that which is built specifically to the standards of the Department of Housing and Urban Development (HUD), although the term mobile home is still commonly used. Most states have agencies that administer and enforce the federal regulations for manufactured housing. State and local building codes regulate the construction and installation of other types of [...] -built housing. A useful resource is the Manufactured Housing Institute, www.manufacturedhousing.org.

The distinction between real and [...] property is not always obvious. Factory-built components are found in virtually every building and become part of the real estate once installed. Manufactured housing may be considered [...] property, even though its mobility may be limited to a single trip to a park or development to be hooked up to utilities. Any type of factory-built or manufactured housing may, however, be considered real property if it becomes permanently affixed to the land. The distinction is generally one of state law. Real estate professionals should be familiar with local laws before attempting to sell factory-built housing of any type.

Answer

Factory Built
mobile
personal property

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Flashcard 1603149892876

Tags

#cfa-level-1 #financial-reporting-and-analysis #reading-26-understanding-balance-sheets

Question

Current liabilities are typically paid from current assets or [...]

Answer

by incurring new short-term liabilities.

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Subject 2. Measurement Bases of Assets and Liabilities
whichever is longer. Typical examples are pre-paid rent, advertising, taxes, insurance policies, and office or operating supplies. They are reported at the amount of un-expired or unconsumed cost. Current Liabilities Current liabilities are typically paid from current assets or by incurring new short-term liabilities. They are not reported in any consistent order. A typical order is: accounts payable, notes payable, accrued items (e.g., accrued warranty costs, compensation and benefits), income taxes

Flashcard 1603152252172

Tags

#cfa-level-1 #financial-reporting-and-analysis #reading-26-understanding-balance-sheets

Question

A typical order for presenting [...] is: accounts payable, notes payable, accrued items (e.g., accrued warranty costs, compensation and benefits), income taxes payable, current maturities of long-term debt, unearned revenue, etc.

Answer

Current liabilities

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Subject 2. Measurement Bases of Assets and Liabilities
t the amount of un-expired or unconsumed cost. Current Liabilities Current liabilities are typically paid from current assets or by incurring new short-term liabilities. They are not reported in any consistent order. A typical order is: accounts payable, notes payable, accrued items (e.g., accrued warranty costs, compensation and benefits), income taxes payable, current maturities of long-term debt, unearned revenue, etc. Tangible Assets These are carried at their historical cost less any accumulated depreciation or accumulated depletion. See Reading 29 [Long-Lived Assets] for d

Flashcard 1603154611468

Tags

#cfa-level-1 #financial-reporting-and-analysis #reading-26-understanding-balance-sheets

Question

At what cost are identifiable intangible assets generally recorded

Answer

only when purchased (at acquisition costs)

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Subject 2. Measurement Bases of Assets and Liabilities
ion. See Reading 29 [Long-Lived Assets] for details. Intangible Assets Intangible assets are long-term assets that have no physical substance but have a value based on rights or privileges that belong to their owner. Generally, identifiable intangible assets are recorded only when purchased (at acquisition costs). The cost of internally developed identifiable intangible assets is typically expensed when incurred. For example, R&D costs are not in themselves intangible assets. They should be

Flashcard 1603156970764

Tags

#cfa-level-1 #financial-reporting-and-analysis #reading-26-understanding-balance-sheets

Question

The cost of internally developed identifiable intangible assets is typically expensed [...]

Answer

when incurred.

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Subject 2. Measurement Bases of Assets and Liabilities
tangible assets are long-term assets that have no physical substance but have a value based on rights or privileges that belong to their owner. Generally, identifiable intangible assets are recorded only when purchased (at acquisition costs). The cost of internally developed identifiable intangible assets is typically expensed when incurred. For example, R&D costs are not in themselves intangible assets. They should be treated as revenue expenditures and charged to expense in the period in which they are incurred. One e

Flashcard 1603159330060

Tags

#cfa-level-1 #financial-reporting-and-analysis #reading-26-understanding-balance-sheets

Question

Are R&D costs intangible assets?

Answer

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Subject 2. Measurement Bases of Assets and Liabilities
or privileges that belong to their owner. Generally, identifiable intangible assets are recorded only when purchased (at acquisition costs). The cost of internally developed identifiable intangible assets is typically expensed when incurred. For example, R&D costs are not in themselves intangible assets. They should be treated as revenue expenditures and charged to expense in the period in which they are incurred. One exception is that IFRS allows costs in the development stage to be capitalized if certain criteria (including technological feasibility) are met. A company should assess whether the useful life of an intangible asset is finite or infinite and, if finite, the length of its life. The straight-line method is typically u

Flashcard 1603160378636

Tags

#cfa-level-1 #financial-reporting-and-analysis #reading-26-understanding-balance-sheets

Question

How should R&D costs treated?

Answer

as revenue expenditures

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Flashcard 1603163000076

Tags

#cfa-level-1 #financial-reporting-and-analysis #reading-26-understanding-balance-sheets

Question

When should R&D costs be expensed?

Answer

in the period in which they are incurred.

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Flashcard 1603163524364

Tags

#business

Question

John _______ founder of Whole Foods Corporation. First store was _______ r-way in Austin Texas. First Whole Foods was destroyed in a 100 year flood in 19___

Answer

Mackey
Safe r way
1981

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Flashcard 1603167980812

Tags

#politics

Question

Nikki ______ is the US Ambassador to the UN. Was Governor of _______. Critic of _______

Answer

Haley
South Carolina
Donald Trump

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Flashcard 1603169815820

Tags

#cfa-level-1 #financial-reporting-and-analysis #reading-26-understanding-balance-sheets

Question

How should an intangible asset be amortised if it has a finite life?

Answer

The straight-line method is typically used for amortization.

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Subject 2. Measurement Bases of Assets and Liabilities
pment stage to be capitalized if certain criteria (including technological feasibility) are met. A company should assess whether the useful life of an intangible asset is finite or infinite and, if finite, the length of its life. The straight-line method is typically used for amortization. Goodwill is an example of an unidentifiable intangible asset which cannot be acquired singly and typically possesses an indefinite benefit period. It stems from such factor

Flashcard 1603172175116

Tags

#cfa-level-1 #financial-reporting-and-analysis #reading-26-understanding-balance-sheets

Question

[...] is an example of an unidentifiable intangible asset which cannot be acquired singly.

Answer

Goodwill

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Subject 2. Measurement Bases of Assets and Liabilities
feasibility) are met. A company should assess whether the useful life of an intangible asset is finite or infinite and, if finite, the length of its life. The straight-line method is typically used for amortization. Goodwill is an example of an unidentifiable intangible asset which cannot be acquired singly and typically possesses an indefinite benefit period. It stems from such factors as a good reputation, loyal customers, and superior management. Any business that earns significantly more than a normal rate of return actually has goodwill.

Flashcard 1603174534412

Tags

#cfa-level-1 #financial-reporting-and-analysis #reading-26-understanding-balance-sheets

Question

Goodwill is recorded in the accounts only if it is purchased by [...]

Answer

acquiring another business at a price higher than the fair market value of its net identifiable assets.

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Subject 2. Measurement Bases of Assets and Liabilities
lly possesses an indefinite benefit period. It stems from such factors as a good reputation, loyal customers, and superior management. Any business that earns significantly more than a normal rate of return actually has goodwill. Goodwill is recorded in the accounts only if it is purchased by acquiring another business at a price higher than the fair market value of its net identifiable assets. It is not valued directly but inferred from the values of the acquired assets compared with the purchase price. It is the premium paid for the target company's reputation, brand names,

Flashcard 1603176893708

Tags

#cfa-level-1 #financial-reporting-and-analysis #reading-26-understanding-balance-sheets

Question

[...] is the premium paid for the target company's reputation, brand names, customers or suppliers, technical knowledge, key personnel, and so forth.

Answer

Goodwill

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Subject 2. Measurement Bases of Assets and Liabilities
only if it is purchased by acquiring another business at a price higher than the fair market value of its net identifiable assets. It is not valued directly but inferred from the values of the acquired assets compared with the purchase price. It is the premium paid for the target company's reputation, brand names, customers or suppliers, technical knowledge, key personnel, and so forth. Goodwill only has value insofar as it represents a sustainable competitive advantage that will result in abnormally high earnings. Analysts need to be aware of the possibil

Annotation 1603179253004

#cfa-level-1 #financial-reporting-and-analysis #reading-26-understanding-balance-sheets

Goodwill only has value insofar as it represents a sustainable competitive advantage that will result in abnormally high earnings. Analysts need to be aware of the possibility, however, that the goodwill recognized by accountants may, in fact, represent overpayment for the acquired company. Since goodwill is inferred rather than computed directly, it will increase as the payment price increases. It is only after the passage of time that analysts will be able to evaluate the extent to which the purchase price was justified.

Under U.S. GAAP SFAS No. 142, goodwill is no longer amortized, but is tested annually for impairment. It is not amortized. Impairment of goodwill is a non-cash expense which is charged against income in the current period.

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Subject 2. Measurement Bases of Assets and Liabilities
inferred from the values of the acquired assets compared with the purchase price. It is the premium paid for the target company's reputation, brand names, customers or suppliers, technical knowledge, key personnel, and so forth. Goodwill only has value insofar as it represents a sustainable competitive advantage that will result in abnormally high earnings. Analysts need to be aware of the possibility, however, that the goodwill recognized by accountants may, in fact, represent overpayment for the acquired company. Since goodwill is inferred rather than computed directly, it will increase as the payment price increases. It is only after the passage of time that analysts will be able to evaluate the extent to which the purchase price was justified. Under U.S. GAAP SFAS No. 142, goodwill is no longer amortized, but is tested annually for impairment. It is not amortized. Impairment of goodwill is a non-cash expense which is charged against income in the current period. <body><html>

Annotation 1603183185164

There are times when companies, especially large companies, make or lose money from the change in value of certain assets. These changes can be found on the cash flow statement; however, the net impact to earnings is found in comprehensive or other comprehensive income on the income statement.

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Parent (intermediate) annotation

Open it
r earnings, but net income on the income statement is not necessarily all inclusive. That is, it only includes income from business operations. These are the activities that occur due to the company's business model and day-to-day activities. There are times when companies, especially large companies, make or lose money from the change in value of certain assets. These changes can be found on the cash flow statement; however, the net impact to earnings is found in comprehensive or other comprehensive income on the income statement.<body><html>

Original toplevel document

Comprehensive Income Definition | Investopedia
exclusive of something or unfinished in some way. So it is not surprising that when accountants speak of detail, they reference the word comprehensive. The more comprehensive a financial statement, the more detailed. Comprehensive Income One of the most important financial statements is the income statement. It provides an overview of sales and expenses, including taxes and interest. At the end of the income statement is net income or earnings, but net income on the income statement is not necessarily all inclusive. That is, it only includes income from business operations. These are the activities that occur due to the company's business model and day-to-day activities. There are times when companies, especially large companies, make or lose money from the change in value of certain assets. These changes can be found on the cash flow statement; however, the net impact to earnings is found in comprehensive or other comprehensive income on the income statement. A Few Examples For a personal finance example, say a co-worker won the lottery. The lottery winnings are considered part of his taxable or comprehensive income but not regular incom

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Question

Everything in seduction depends on [...].

Answer

suggestion

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Everything in seduction, however, depends on suggestion. You cannot announce your intentions or reveal them directly in words. Instead you must throw your targets off the scent.

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Article 1603188690188

Subject 3. Financial Instruments: Financial Assets and Financial Liabilities
#cfa-level-1 #reading-26-understanding-balance-sheets

Financial instruments are contracts that give rise to both a financial asset of one company and a financial liability of another company. Financial instruments come in a variety of forms which include derivatives, hedges, and marketable securities. Measured at fair market value: Financial assets: Financial assets held for trading. Available-for-sale financial assets. Derivatives (whether stand-alone or embedded in non-derivative instruments). Non-derivative instruments with fair value exposures hedged by derivatives. Financial liabilities: Derivatives. Financial liabilities held for trading. Non-derivative instruments with fair value exposures hedged by derivatives. Measured at cost or amortized cost: Financial assets: Unlisted instruments (there is no reliable valuation measure). Held-to-maturity investments (bonds). Loans and receivables. Financial liabilities: All other liabilities (such as bonds payable or notes payable). Accounting for Gains and Losses

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#cfa-level-1 #reading-26-understanding-balance-sheets

Question

[...] are contracts that give rise to both a financial asset of one company and a financial liability of another company.

Answer

Financial instruments

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Subject 3. Financial Instruments: Financial Assets and Financial Liabilities
Financial instruments are contracts that give rise to both a financial asset of one company and a financial liability of another company. Financial instruments come in a variety of forms which include derivatives, hedges, and marketable securities. Measured at fair market value: Financial assets:

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#cfa-level-1 #reading-26-understanding-balance-sheets

Question

Financial instruments come in a variety of forms which include derivatives, [...] , and marketable securities.

Answer

hedges

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#cfa-level-1 #reading-26-understanding-balance-sheets

Question

Measured at fair market value:

Financial assets:

[...]
Available-for-sale financial assets.
[...]
Non-derivative instruments with fair value exposures hedged by derivatives.

Answer

Financial assets held for trading.

Derivatives (whether stand-alone or embedded in non-derivative instruments).

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Subject 3. Financial Instruments: Financial Assets and Financial Liabilities
struments are contracts that give rise to both a financial asset of one company and a financial liability of another company. Financial instruments come in a variety of forms which include derivatives, hedges, and marketable securities. Measured at fair market value: Financial assets: Financial assets held for trading. Available-for-sale financial assets. Derivatives (whether stand-alone or embedded in non-derivative instruments). Non-derivative instruments with fair value exposures hedged by derivatives. Financial liabilities: Derivatives. Financial liabilities held for trading. Non-derivative instruments with fair value exposures hedged by derivatives. &

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Question

Measured at fair market value:

Financial liabilities:

Derivatives.
[...]
Non-derivative instruments with fair value exposures hedged by derivatives.

Answer

Financial liabilities held for trading.

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Subject 3. Financial Instruments: Financial Assets and Financial Liabilities
13; Financial assets held for trading. Available-for-sale financial assets. Derivatives (whether stand-alone or embedded in non-derivative instruments). Non-derivative instruments with fair value exposures hedged by derivatives. Financial liabilities: Derivatives. Financial liabilities held for trading. Non-derivative instruments with fair value exposures hedged by derivatives. Measured at cost or amortized cost: Financial assets: Unlisted instruments (there is no reliable valuation measure). Held-to-maturity investments

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Question

Measured at cost or amortized cost:

Financial assets:

Unlisted instruments (there is no reliable valuation measure).
[...]
Loans and receivables.

Financial liabilities:

All other liabilities (such as bonds payable or notes payable).

Answer

Held-to-maturity investments (bonds).

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Subject 3. Financial Instruments: Financial Assets and Financial Liabilities
ts with fair value exposures hedged by derivatives. Financial liabilities: Derivatives. Financial liabilities held for trading. Non-derivative instruments with fair value exposures hedged by derivatives. Measured at cost or amortized cost: Financial assets: Unlisted instruments (there is no reliable valuation measure). Held-to-maturity investments (bonds). Loans and receivables. Financial liabilities: All other liabilities (such as bonds payable or notes payable). Accounting for Gains and Losses on Marketable Securities Held-to-maturity securities. Debt securities that management intends to hold to their m

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#cfa-level-1 #reading-26-understanding-balance-sheets

Question

[...] are debt securities that management intends to hold to their maturity dates.

Answer

Held-to-maturity securities

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Subject 3. Financial Instruments: Financial Assets and Financial Liabilities
(bonds). Loans and receivables. Financial liabilities: All other liabilities (such as bonds payable or notes payable). Accounting for Gains and Losses on Marketable Securities Held-to-maturity securities. Debt securities that management intends to hold to their maturity dates. At year-end, they are reported at cost adjusted for the effect of interest (debit the securities account and credit the interest income account) and unrealized holding gains and losses are not recognized. Trading securities. Debt and equity securities bought and held mainly for sale in the short term to generate income on price changes. At year-end, they are report

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Question

Held-to-maturity securities. At year-end, they are reported at cost adjusted for the effect of interest (debit [...] account and credit the [...] account) and unrealized holding gains and losses are not recognized.

Answer

the securities

interest income

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Question

[...] . Debt and equity securities bought and held mainly for sale in the short term to generate income on price changes.

Answer

Trading securities

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Subject 3. Financial Instruments: Financial Assets and Financial Liabilities
aturity dates. At year-end, they are reported at cost adjusted for the effect of interest (debit the securities account and credit the interest income account) and unrealized holding gains and losses are not recognized. Trading securities. Debt and equity securities bought and held mainly for sale in the short term to generate income on price changes. At year-end, they are reported at their fair market value. Any unrealized holding gains or losses are recognized on the company's income statement as part of net income. When they are s

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#cfa-level-1 #reading-26-understanding-balance-sheets

Question

At year-end, Trading securities are reported at [...]

Answer

their fair market value.

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Subject 3. Financial Instruments: Financial Assets and Financial Liabilities
interest income account) and unrealized holding gains and losses are not recognized. Trading securities. Debt and equity securities bought and held mainly for sale in the short term to generate income on price changes. At year-end, they are reported at their fair market value. Any unrealized holding gains or losses are recognized on the company's income statement as part of net income. When they are sold, the realized gains or losses will also appear on the i

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#cfa-level-1 #reading-26-understanding-balance-sheets

Question

Trading securities.

Any unrealized holding gains or losses are recognized on [...]

Answer

the company's income statement as part of net income.

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Subject 3. Financial Instruments: Financial Assets and Financial Liabilities
losses are not recognized. Trading securities. Debt and equity securities bought and held mainly for sale in the short term to generate income on price changes. At year-end, they are reported at their fair market value. Any unrealized holding gains or losses are recognized on the company's income statement as part of net income. When they are sold, the realized gains or losses will also appear on the income statement. Realized gains and losses are not affected by any unrealized gains or losses recognized before

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Question

When Trading securities are sold, the realized gains or losses will also appear on [...]

Answer

the income statement.

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Subject 3. Financial Instruments: Financial Assets and Financial Liabilities
d mainly for sale in the short term to generate income on price changes. At year-end, they are reported at their fair market value. Any unrealized holding gains or losses are recognized on the company's income statement as part of net income. When they are sold, the realized gains or losses will also appear on the income statement. Realized gains and losses are not affected by any unrealized gains or losses recognized before. Available-for-sale securities. Debt and equity securities not classified

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#cfa-level-1 #reading-26-understanding-balance-sheets

Question

[...] debt and equity securities not classified as held-to-maturity or trading securities.

Answer

Available-for-sale securities

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Subject 3. Financial Instruments: Financial Assets and Financial Liabilities
ncome statement as part of net income. When they are sold, the realized gains or losses will also appear on the income statement. Realized gains and losses are not affected by any unrealized gains or losses recognized before. Available-for-sale securities. Debt and equity securities not classified as held-to-maturity or trading securities. Unrealized gains and losses are reported as part of other comprehensive income (in contrast, the unrealized gains or losses of trading securities are reported in the income statement as

Flashcard 1603218050316

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#cfa-level-1 #reading-26-understanding-balance-sheets

Question

Available-for-sale securities.

Unrealized gains and losses are reported as part of [...] (in contrast, the unrealized gains or losses of trading securities are reported in the income statement as part of net income).

Answer

other comprehensive income

Other than that, they are accounted for in the same way as trading securities.

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Subject 3. Financial Instruments: Financial Assets and Financial Liabilities
me statement. Realized gains and losses are not affected by any unrealized gains or losses recognized before. Available-for-sale securities. Debt and equity securities not classified as held-to-maturity or trading securities. Unrealized gains and losses are reported as part of other comprehensive income (in contrast, the unrealized gains or losses of trading securities are reported in the income statement as part of net income). Other than that, they are accounted for in the same way as trading securities. <body><html>

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#news

Question

Russian Foreign Minister Sergei _______
Russian Ambassador Sergei ______

Answer

Lavrov (FML)
Kislyak (AK)

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#estate #real

Question

For affordable housing, AMI means ___________

Answer

Area Median Income

Typical AMI may be $109,000 to $144,000.
An Affordable requirement may be 80% of AMI

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Question

Gangam Style is by ______

Answer

Psy

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#new #toll #york

Question

Pleasantville NY
Benenson
Bruce ______
Michael _______
Neil ________
Goldfard and
Gary ________
50 Lots
South of Chappaqua

Answer

Leffler (dead)
Bollag
Weinstein
Fleece
Sedorak

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