Test your basic knowledge |

CFA Level2 Vocab

Subjects : certifications, cfa
Instructions:
  • Answer 50 questions in 15 minutes.
  • If you are not ready to take this test, you can study here.
  • Match each statement with the correct term.
  • Don't refresh. All questions and answers are randomly picked and ordered every time you load a test.

This is a study tool. The 3 wrong answers for each question are randomly chosen from answers to other questions. So, you might find at times the answers obvious, but you will see it re-enforces your understanding as you take the test each time.
1. Costs of inven tories including costs of purchase - costs of conversion - other costs to bring the inventories to their present location and condition - and the allocated portion of) fixed production overhead costs.






2. An adjustment used to facilitate delivery on bond futures contracts in which any of a number of bonds with different characteristics are eligible for delivery.






3. Bias that may result when failed or defunct companies are excluded from member-ship in a group.






4. A merger in which one company ceases to exist as an identifiable entity and all its assets and liabilities become part of a purchasing company.






5. Sales price less disposition costs - amortized mortgage loan bal-ance - and capital gains taxes.






6. A variation of VAR that reflects the risk of a company's cash flow instead of its market value.






7. The study of how data can besummarized effectively.






8. A number between - 1 and + 1 that measures the co-movement (linear association) between two random variables.






9. The difference between the third and fi rst quarti les of a dataset.






10. The capital structure at which the value of the company is maximized.






11. Covering or containing all possible outcomes.






12. A forward contract in which the underlying is a bond.






13. For accounting purposes - the spot exchange rate on the balance sheet date.






14. A legal corporate entity whose shareholders are its members. The members of the exchange have the privilege of executing transactions directly on the exchange.






15. An activity ratio calculated as purchases divided by average trade payables.






16. The money of other countries regardless of whether that money is in the form of notes - coins - or bank deposits.






17. An exchange rate pegged at a value decided by the government or central bank and that blocks the unregulated forces of demand and supply by direct intervention in the foreign exchange market.






18. With reference to statistical infer-ence - the subdivision dealing with the testing ofhypotheses about one or more populations.






19. The part of the execution step of the portfolio management process that involves the implementation of port-folio decisions by trading desks.






20. Common sharehold-ers' equity minus intangible assets from the bal-ance sheet - divided by the number of shares outstanding.






21. With reference to grouped data - the most frequently occurring interval.






22. The sum of the real risk-free interest rate and the inflation premium.






23. A variation of a forward contract that has essentially the same basic definition but with some additional features - such as a clearing-house guarantee against credit losses - a daily settlement of gains and losses - and an organized electronic or fl






24. The amount at which an asset or liability is valued according to account-ing principles.






25. The financial state-ment that presents an entity's current financial position by disclosing resources the entity con-trols (its assets) and the claims on those resources (its liabilities and equity claims) - as of a particular point in time (the date






26. The currency of the primary economic environment in which an entity operates.






27. Under U.S. GAAP -a special purpose entity structured to avoid consol-idation that must meet qualification criteria.






28. An agreement between two parties in which one party - the buyer - agrees to buy from the other party - the seller - an underlying asset at a later date for a price established at the start of the contract.






29. Theories that posit that cor-porate executives are motivated to engage in mergers to maximize the size of their company rather than shareholder value.






30. A gain in value caused bychanges in price levels. Monetary liabilities expe-rience purchasing power gains during periods ofinflation.






31. An algorithm that pro-duces uniformly distributed random numbers between 0 and 1.






32. A list of accounts used in an entity's accounting system.






33. A possible value of a random variable.






34. The process of using an option to buy or sell the underlying.






35. With respect to double-entry accounting - a debit records increases of asset and expense accounts or decreases in liability and owners' equity accounts.






36. A contract that spans a number of accounting periods.






37. An interest rate swap in which one party pays a fixed rate and the other pays a float-ing rate - with both sets of payments in the same currency.






38. A contract in which the under-lying asset is oil - a precious metal - or some other commodity.






39. Common-size analysis using only one reporting period or one base financial state-ment; fo r example - an income statement in which all items are stated as percentages of sales.






40. A loan that is secured with com-panyassets.






41. A measure of VAR equivalentto the analytical method bu t that refers to the use of delta to estimate the option's price sensitivity.






42. The number of shares that would beoutstanding if all potentially dilutive claims oncommon shares (e.g. - convertible debt - convert-ible preferred stock - and employee stock options)were exercised.






43. A condition in the futures markets in which the price at which a transaction would be made is at or beyond the price limits.






44. A rate of interest based on the secu-rity's face value.






45. A legal restriction that dividends cannot exceed retained earnings.






46. A test in which the null hypothesis is rejected only if the evidence indicates that the population parameter is greater than (smaller than) eo- The alternative hypothesis also has one side.






47. A tax that is imposed by the importing coun-try when an imported good crosses its interna-tional boundary.






48. Equity shares that are subordinate to all other types of. equity (e.g. - p refe rred equi ty) .






49. The ability to terminate a proj-ect at some future time if the financial results are disappointing.






50. Correlation between adj acent observations in a time ser ies.







Sorry!:) No result found.

Can you answer 50 questions in 15 minutes?


Let me suggest you:

Browse all subjects

Browse all tests

Most popular tests



Major Subjects

Tests & Exams


AP
CLEP
DSST
GRE
SAT
GMAT

Browse all subjects

Browse all tests

Most popular tests