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CFA Exam Level 1 > FRA > Flashcards

FRA Flashcards

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1
Q

The preparation of financial information and statements to stakeholders including shareholders and creditors to help inform their economic decision making is known as …?

A

Financial Reporting

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2
Q

What is the difference between financial statements and management accounts?

A

Financial statements are prepared for external use, management accounts are internal

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3
Q

A snapshot of financial position at a given moment in time and consists of a companies assets, liabilities and equity is what sort of financial statement?

A

Balance sheet

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4
Q

What is the equity equation?

A

Equity = Net Assets = A – L

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5
Q

What is capital structure?

A

The blend of equity and liabilities used to fund a company

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6
Q

What are the 2 elements of a firms equity?

A
  1. Retained earnings

2. Contributed Capital

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7
Q

Which financial statement reconciles the equity at the beginning of the period and the equity at the end of the period by incorporating profit for the year, dividends paid, revaluation gain

A

Statement of Changes in Equity

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8
Q

What are the three components of a cash flow statement?

A
  1. Operating CF
  2. Investing CF
  3. Financing CF
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9
Q

What is the purpose of the Management Discussion & Analysis section of financial statements?

A

Management discuss the nature of the business, objectives, historic performance, key relationships, resources and risks etc

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10
Q

What are the 5 types of audit opinion

A 
Unqualified opinion
Qualified opinion
Adverse opinion
Disclaimer of opinion
Modified opinion
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11
Q

A firm will continue to operate for the next 12 months is said to be a …?

A

Going Concern

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12
Q

What is the objective of an audit?

A

To certifying the trueness and fairness of the financial statements

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13
Q

An independent review of an entities financial statements by a third party accounting firm, is also known as an?

A

Audit

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14
Q

Which form is issued when a company makes an acquisition or disposal?

A

8-K

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15
Q

What form is issued when a firm issues its annual report

A

10-K

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16
Q

Which form is issued when a firm issues its quarterly financial reports?

A

10-Q

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17
Q

Which form is filed prior to the sale of new securities to the public?

A

S-1

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18
Q

What statement is issued to shareholders when there are matters that require a shareholder vote?

A

Proxy Statement

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19
Q

What are the 6 steps of FS analysis?

A
  1. State Objective
  2. Gather data
  3. Process data
  4. Analyse and interpret the data
  5. Conclude and Recommend
  6. Update the analysis
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20
Q

What is the difference between standard setting bodies and regulatory bodies?

A

Standard-setting bodies are professional organizations of accountants and auditors that establish financial reporting standards.

Regulatory authorities are government agencies that have the legal authority to enforce compliance with financial reporting standards.

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21
Q

Who prepares the IFRS?

A

The IASB (International Accounting Standards Board)

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22
Q

Who prepares US GAAP?

A

FASB (Financial Accounting Standards Board)

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23
Q

Who are IOSCO?

A

IOSCO regulate more than 95% of the world’s financial markets

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24
Q

Which act prohibits a company’s external auditor from providing certain additional paid services to the company, to avoid the conflict of interest involved and to promote auditor independence?

A

Sarbanes-Oxley Act of 2002

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25
Q

What are the six qualitative characteristics of the conceptual framework?

A
  1. Relevance
  2. Faithful Representation
  3. Comparability
  4. Timeliness
  5. Verifiability
  6. Understandability
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26
Q

Materiality is a component of which six qualitative characteristics of the conceptual framework?

A

Relevance

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27
Q

Resources under control of entity, as a result of a prior event, from which future economic benefits are expected is an …?

A

Asset

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28
Q

A present obligation, as a result of a past event, from which future economic benefits are due to outflow, is a…?

A

Liability

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29
Q

Decreases in economic benefits, either decreasing assets or increasing liabilities in a way that decreases equity is an…?

A

Expense

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30
Q

An increase in economic benefits, either increasing assets or decreasing liabilities in a way that increases equity, is also known as…?

A

Income

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31
Q

Which IFRS reporting requirements defines combining similar items and separation of dissimilar items

A

Aggregation

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32
Q

Which IFRS reporting requirements defines recognising the income/expense when the performance obligation occurs

A

Accrual accounting

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33
Q

Which IFRS reporting requirement defines line items being prepared and grouped in a similar fashion between periods?

A

Consistency

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34
Q

Which type of balance sheet breaks out current and noncurrent assets and liabilities?

A

Classified balance sheet

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35
Q

How often must financial statements be reported?

A

At least annually

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36
Q

What is the difference between expenses by function and expenses by nature?

A

Expenses by function: Grouping all by the activity the business used them for / type of expense by department.

Expenses by nature: Grouping all expenses by source of the expense

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37
Q

What is the general rule of at what point revenue can be recognised?

A

Revenue is recorded when the relevant performance obligation has been performed

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38
Q

What are the 5 formal steps to recognising revenue?

A
  1. Identify contract
  2. Identify performance obligations
  3. Determine transaction price
  4. Allocate transaction price to performance obligations
  5. Recognise revenue when performance obligations are satisfied
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39
Q

How do we treat contractual bonuses under USGAAP?

A

We recognise them only if there is certainty that they will be attained

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40
Q

Which accounting principle defines that revenues and any related expenses be recognized together in the same reporting period

A

Matching

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41
Q

Any cost that cannot be directly attributed / capitalised is known as a …?

A

Period cost

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42
Q

What are the three methods of calculating inventory and which are allowed under US GAAP?

A
  1. FIFO
  2. LIFO
  3. Weighted Average Cost
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43
Q

Which inventory calculation method is not permitted under IFRS?

A

LIFO

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44
Q

How is LIFO impacted in an inflationary environment?

A

In an inflationary environment LIFO is preferred at it increases COGS as goods purchased later are dearer therefore reduces profit before tax and therefore decreases income tax

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45
Q

What are the three types of depreciation?

A
  1. Straight line
  2. Double declining balance
  3. Accelerated
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46
Q

What is the formula for straight line depreciation?

A

( Straight\ line\ depreciation = \frac{Cost - Residual\ Value}{UEL} )

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47
Q

What is the formula for double declining balance depreciation?

A

( Double\ declining\ balance\ depreciation = \frac{2}{UEL}(cost - accumulated\ depreciation) )

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48
Q

How would we calculate amortisation?

A

Using the straight line method

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49
Q

Do we amortise an intangible asset with an indefinite UEL?

A

No, intangible assets with indefinite UELs are not amortised and are recognised indefinitly, however they also must be tested annually for impairment

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50
Q

A substantial and separable and operationally distinct part of the wider company that management has decided to divest or abandon is known as what under IFRS 5?

A

Discontinued operation

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51
Q

What are prior period errors and how do we account for them?

A
  1. Prior period errors require retrospective application, any prior-period financial statements presented in a firm’s current financial statements must be restated, applying the new policy to those statements as well as future statements
  2. This is usually adjusted through retained earnings
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52
Q

What are vertical common sized income statements expressed in terms of?

A

Revenue

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53
Q

Which line item does any adjustment to the I/S impact?

A

Any adjustment that impacts I/S impacts retained earnings therefore impacts equity.

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54
Q

How do we calculate the effective tax rate?

A

( Effective\ tax\ rate = \frac{Tax\ expense}{PBT} )

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55
Q

Do dividends paid impact net income?

A

Dividends Paid does not effect Net Income, it only impacts equity

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56
Q

What does OCI include?

A

Changes to the net pension liability
FX gains/losses
Revaluation gains/losses on property

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57
Q

Unrealized gains and losses reported as other comprehensive income, not on the income statement and also being held on the balance sheet at amortised cost, are characteristics of what class of securities?

A

Avaliable for sale

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58
Q

Unrealized gains and losses that are not reported on either the income statement or as other comprehensive income and that are held on the balance sheet at FV, are characteristics of what type of security?

A

Held to Maturity

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59
Q

Unrealized gains and losses during the period are reported on the income statement, and reported on the balance sheet at FV, are characteristics of which type of security?

A

Trading securities

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60
Q

What is the formula for computing basic EPS?

A

( Basic\ EPS = \frac{Net\ income - preferred\ dividends}{Weighted\ average\ number\ of\ common\ shares\ outstanding} )

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61
Q

How to warrants differ to stock options?

A

Stock options are agreed between two investors whereas stock warrants are agreed between an investor and the company itself

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62
Q

What is the difference between a simple and complex capital structure?

A

Simple capital structure: A capital structure with no potentially dilutive securities. Only contains ordinary shares, nonconvertible debt and nonconvertible prefs

Complex capital structure: Contains potentially dilutive securities such as convertibles and options.

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63
Q

Which type of firms report diluted EPS?

A

Firms with complex capital structures

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64
Q

How do we calculate the weighted average number of common shares outstanding?

A

The number of common shares outstanding during the year weighted by the period of time they were actually outstanding for

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65
Q

What is the difference between a cash dividend and a stock dividend?

A

Cash dividend: Dividends that are paid out as a percentage of the $ of holding in the shares

Stock Dividend: Holder receives a shares as a % dividend rather than cash. % shareholding is left unchanged, tool to reduce EPS.

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66
Q

What is the difference between dilutive and anti-dilutive securities?

A

Dilutive securities: Securities that decrease EPS upon exercise/conversion e.g. options, convertible debt / pref shares / warrants

Anti-dilutive securities: Securities than increase EPS upon exercise

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67
Q

Analysing macro and wider economic trends in order to forecast income going forward is also known as a ___ approach to forecasting out a P&L?

A

Top down approach

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68
Q

What are the 3 C’s of credit?

A

Character
Collateral
Capacity to repay

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69
Q

What 4 formulas do credit rating agencies apply to assess business characteristics?

A

Scale and diversification
Operational efficiency
Margin stability
Leverage

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70
Q

What ratios do analysts use to screen potential equity investments?

A

P/E ratios

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71
Q

What is the difference between financial reporting and quality of earnings?

A

Financial reporting quality refers to the integrity of the FS and alignment to the principles of US GAAP
Quality of earnings: The proportion of earnings that can be expected to continue into the future.

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72
Q

What is the difference between conservative and aggressive accounting?

A

Conservative accounting: Prudent, tend to decrease the company’s reported earnings and financial position

Aggressive accounting: Opposite of prudent, increase reported earnings or improve the financial position

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73
Q

What are 2 ideal characteristics of financial statements?

A

Ideally financial statements should be neutral and unbiased

74
Q

During periods of higher-than-expected earnings, management may employ a conservative bias by adjusting a liability upward to reduce reported earnings for that period. This is an example of…?

A

Earnings smoothing

75
Q

What are the three conditions for fraud?

A
  1. Motivation
  2. Opportunity
  3. Rationalisation
76
Q

What is the owners’ residual interest in the assets after deducting the liabilities defined as?

A

Equity

77
Q

What are some uses of the balance sheet in financial analysis?

A

Assessing liquidity, solvency and ability to make distributions to shareholders

78
Q

What is the difference between a classified and liquidity balance sheet?

A

Classified Balance Sheet: Splitting out assets and liabilities into current and non-current

Liquidity based format: Assets and liabilities split out in order of liquidity

79
Q

What is the difference between current assets and current liabilities?

A

Current assets include cash and other assets that will likely be converted into cash or used up within one year

Current liabilities are obligations that will be satisfied within one year

80
Q

What is the formula for working capital?

A

Working capital = Current Assets - Current Liabilities

81
Q

What is the difference between non-current assets and non-current liabilities?

A

Non-current assets: Assets that do not meet the definition of current ie will not be converted into cash within the next 12 months

Non-current liabilities: Liabilities that will be due in over 12 months time

82
Q

What are some examples of current assets?

A 
Cash and cash like equivalents
Marketable securities
Accounts receivable
Inventory
Prepayments
83
Q

What are some examples of current liabilities?

A 
Accounts payable
Notes payable
Accrued liabilities (accrual)
Income tax payable
Deferred revenue
84
Q

How do we value inventory under IFRS?

A

Valued at NRV = lower of 1. Cost or 2. selling price – Conversion costs – costs to bring the inventory to site

85
Q

How do we value inventory under US GAAP?

A

Valued at lower of cost and market

86
Q

Under US GAAP how are R&D costs treated compared to under IFRS?

A

R&D are expensed through the P&L

87
Q

How are R&D costs treated under IFRS?

A

Research costs incurred during the research phase are expensed through the P&L

Capitalise development costs as an intangible asset only after the technical and commercial feasibility of the asset for sale or use has been established

88
Q

What is the difference between an authorised share, an issued share and outstanding shares?

A

Authorised shares: Number of shares in a company available for sale. e.g. Tesla shares less Elon Musk’s shareholding

Issued shares: Number of shares in a company that have been sold

Outstanding share: Issued shares – Number of shares reacquired by firm (Treasury shares)

89
Q

What is the difference between redeemable preference shares and irredeemable preference shares?

A

Redeemable preference shares are very commonly seen preference share which has a maturity date on which date the company will repay the capital amount to the preference shareholders and discontinue the dividend payment thereon.

Irredeemable preference shares are little different from other types of preference shares. It does not have any maturity date which makes this instrument very similar to equity

90
Q

Stock that has been reacquired by the issuing firm but not yet retired is also known as…?

A

Treasury stock

91
Q

Vertical common sized balance sheet are expressed in terms of …?

A

Total assets

92
Q

What is the formula for the current ratio?

A

( Current\ Ratio = \frac{Current\ assets}{Current\ liabilities} )

93
Q

What is the formula for the quick ratio?

A

( Quick\ ratio = \frac{current\ assets - inventory}{current\ liabilities} )

94
Q

What is the formula for financial leverage?

A

( Financial\ leverage = \frac{Total\ assets}{Total\ equity} )

95
Q

Which 2 sources do entries in the cash flow statement always come from?

A

Income statement items

Change in B/S items

96
Q

How do we treat non-cash transactions on the cash flow statement?

A

Non cash transactions are not included in the cash flow statements but must be footnoted below the statement

97
Q

Which approach do IFRS and US GAAP prefer for presenting the cash flow statement?

A

Indirect approach

98
Q

What are the advantages of using the direct method for cash flow calculations over the indirect method?

A

Splits out the firms operating cash receipts and payments, therefore provides more information than the indirect method

99
Q

What are the advantages of using the indirect method for cash flow calculations over the direct method?

A

Focuses on the difference between NI and CFO, provides a useful link from the I/S to the CF statement allowing for easier future cash flow estimation.

100
Q

What do you express the common size cash flow as a percentage of?

A

Revenue, total cash inflow or total cash outflow

101
Q

How do you convert EBIT to FCFF?

A

FCFF = EBIT + D&A - Income Tax - Change in working capital - CAPEX

102
Q

How do you convert net income to FCFF?

A

FCFF = Net income + Interest * (1-T) + D&A - change in capital - CAPEX

103
Q

What is the formula for FCFE?

A

( FCFE = CFO - FC_{Inv} + net\ borrowing )

104
Q

How are dividends paid treated in IFRS cash flows?

A

Treated as CFO or CFF

105
Q

How is dividend income treated in US GAAP cash flows?

A

CFO

106
Q

What are the 5 different types of financial ratios?

A 
Activity ratios
Liquidity ratios
Solvency ratios
Profitability ratios
Valuation ratios
107
Q

What is the formula for asset turnover?

A

( Asset\ turnover = \frac{Total\ revenue}{Average\ total\ assets} )

108
Q

What is the formula for receivables turnover?

A

( Receivables\ turnover = \frac{Total\ revenue}{Average\ receivables} )

109
Q

What is the formula for receivables days?

A

( Receivables\ days = 365 \frac{Average\ receivables}{Revenue} )

110
Q

What is the formula for inventory turnover?

A

( Inventory\ turnover = \frac{COGS}{Average\ inventory} )

111
Q

What is the formula for inventory days?

A

( Inventory\ days = 365 \frac{Average\ inventory}{COGS} )

112
Q

What is the formula for trade payables turnover?

A

( Trade\ payables\ turnover = \frac{Purchases}{Average\ trade\ payables} )

113
Q

What is the formula for trade payables days?

A

( Trade\ payables\ days = 365 \frac{Average\ trade\ payables}{Purchases} )

114
Q

What is the formula for interest cover?

A

( Interest\ cover = \frac{EBIT}{Interest\ expense} )

115
Q

What is the formula for the debt to equity ratio?

A

( Debt\ to\ equity\ ratio = \frac{Total\ debt}{Total\ equity} )

116
Q

What is the formula for return on assets (ROA)?

A

( Return\ on\ Assets\ (ROA) = \frac{Net\ income}{Average\ total\ assets} )

117
Q

What is the formula for the 3 step DuPont ROE?

A

ROE = Net income margin x Asset turnover x Financial leverage

118
Q

What is the formula for the 5 step DuPont ROE?

A

ROE = Tax burden x Interest burden x EBIT margin x Asset turnover x Financial leverage

119
Q

How do we define a segment for segmental reporting?

A

A segment of a company that produces more than 10% of its revenues, assets, or profits

120
Q

What sort of firms typically report inventory using three separate accounts: raw materials, work-in-process, and finished goods?

A

Manufacturing firms

121
Q

What is the formula for COGS?

A

COGS = Opening Inventory + Purchases - Closing Inventory

122
Q

What is the effect on cash flow during a period of rising prices for FIFO vs LIFO?

A

No impact on cash flow

123
Q

What is the difference between periodic and perpetual inventory systems?

A

Periodic inventory system: Accounting for changes in inventory and COGS at the end of the accounting period

Perpetual inventory system: Accounting for changes in inventory and COGS is made instantly/continuously upon purchases and sales

124
Q

What is the difference in gross profit calculated under periodic vs perpetual FIFO?

A

No difference

125
Q

What is the difference in gross profit calculated under periodic vs perpetual LIFO?

A

Higher gross profit under periodic

126
Q

What is the formula for updating LIFO inventory to FIFO inventory?

A

FIFO Inventory = LIFO Inventory + LIFO Reserve at end of period

127
Q

What is the formula for updating LIFO COGS to FIFO COGS?

A

FIFO COGS = LIFO COGS - (LIFO Reserve at end of period - LIFO Reserve at start of period)

128
Q

What is the formula for updating LIFO net income to FIFO net income?

A

FIFO net income = LIFO net income + (1-t) x (LIFO reserve at end of period - FIFO reserve at end of period)

129
Q

The process of a LIFO company selling inventory beyond that most recent purchase going further back into their LIFO layers, is known as…?

A

LIFO Liquidation

130
Q

Under IFRS, how do we value inventory at the lower of cost and NRV?

A

Inventory is the lower of

  1. Cost
  2. NRV = Selling price - selling costs - estimated costs of completion
131
Q

What is inventory value the lower of under US GAAP?

A

Historical cost or Market

132
Q

How are inventory write-ups treated under IFRS and USGAAP?

A

IFRS: Write ups are allowed but are capped and cannot go above historical cost

USGAAP: Write ups are not allowed. Instead a higher profit is recognised upon sale

133
Q

Long-term assets that lack physical substance, such as patents, brand names, copyrights, and franchises, are also known as…?

A

Intangible assets

134
Q

Which cost aside from development costs must never be capitalised under US GAAP or IFRS?

A

Software development costs

135
Q

The excess of purchase price over the fair value of the identifiable assets acquired in a business combination, is also known as…?

A

Goodwill

136
Q

What 3 properties make an intangible an identifiable intangible?

A

Capable of being separated from the firm or arise from a contractual or legal right
Controlled by the firm
Expected to provide future economic benefits

137
Q

What is depreciation?

A

The systematic allocation of an asset’s cost over time

138
Q

What is component depreciation?

A

The useful life of each component of an asset is estimated and depreciation expense is computed separately for each.

139
Q

Which two revaluation models can be used under IFRS

A
  1. Cost Model

2. Fair Value Model

140
Q

How often must assets be tested for impairment under IFRS?

A

At least annually

141
Q

How do we test for impairment under IFRS?

A

Test to see if the recoverable amount has fallen below the book value

142
Q

What is the formula for the average age of an asset?

A

( Average\ age\ of\ an\ asset = \frac{Accumulated\ depreciation}{Annual\ depreciation\ expense} )

143
Q

What is the formula for the total UEL of an asset?

A

( Total\ UEL = \frac{Historical\ cost}{Annual\ depreciation\ expense} )

144
Q

What is the formula for remaining UEL?

A

( Remaining\ UEL = \frac{Historical\ cost - Accumulated\ depreciation}{Annual\ depreciation\ expense} \

145
Q

How do we treat investment property under IFRS vs USGAAP?

A

Investment property is only classified as a distinguishable type of asset under IFRS. It is not classified separately under US GAAP

146
Q

What 2 models can you use to account for investment property under IFRS?

A
  1. Cost model

2. Fair value model

147
Q

Why does the tax amount actually paid to the authorities often differ to the income tax expense reported in the financial statements?

A

Financial accounting standards (IFRS and US GAAP) often differ to income tax laws and regulations

148
Q

What is a DTA?

A

Balance sheet amounts that result from an excess of taxes payable over income tax expense

149
Q

What is a DTL?

A

Balance sheet amounts that result from an excess of income tax expense over taxes payable

150
Q

A difference between taxable income and pretax income that will not reverse in the future, is also known as a …?

A

Permanent difference

151
Q

A difference between the tax base and the carrying value of an asset or liability that will result in either taxable amounts or deductible amounts in the future, is also known as a…

A

Temporary difference

152
Q

A reserve against DTAs that might not be reversed in the future, is also known as a…?

A

Valuation allowance

153
Q

What is the formula for income tax expense as per the financial statements?

A

Income tax expense = Taxes payable this year + change in DTL - change in DTA

154
Q

In what scenario would we classify a DTL as a liability and what scenario would we classify it as equity?

A

If we expect it to be reversed we classify it as a liability, if we do not expect it to be reversed we classify it as equity

155
Q

When both the timing and amounts of tax payments are uncertain, analysts should treat DTLs as?

A

Neither equity nor liabilities

156
Q

Are DTAs and DTLs classified as current or non current under IFRS?

A

Non-Current

157
Q

Are DTAs and DTLs classified as current or non current under USGAAP?

A

Either current or non current

158
Q

What is the tax base on the tax return defined as?

A

Amount deducted on the tax return as future economic benefits of the asset are realized

159
Q

How do you recognise whether an asset is a DTA or DTL compared to its tax base to NBV?

A

If NBV > Tax Base = DTL

IF NBV < Tax Base = DTA

160
Q

How do you recognise whether a liability is a DTA or DTL compared to its tax base to NBV

A

IF NBV > TB = DTA

IF NBV < TB = DTL

161
Q

What is the temporary difference formula?

A

TD = NBV – Tax Base

162
Q

What is the impact of tax rate decrease on DTAs and DTAs respectively?

A

If the tax rate decreases DTL decreases and income tax expense decreases

If the tax rate decreases DTA decreases and income tax expense increases

163
Q

What is the impact of tax rate increases on DTAs and DTAs respectively?

A

If the tax rate increases DTL increases and income tax expense increases

If the tax rate increases DTA increases and income tax expense decreases

164
Q

Do permanent differences create DTAs/DTLs?

A

No

165
Q

How do permanent difference’s impact the effective tax rate comp?

A

As soon as we have permanent difference’s our effective tax rate does not = statutory tax rate

166
Q

What 2 types of payment are involved in a bond?

A

(1) periodic interest payments, and

(2) repayment of principal at maturity

167
Q

What is the bond issue called when the effective interest rate = coupon rate?

A

Issued at par

168
Q

What is the bond issue called when the effective interest rate > coupon rate?

A

Issued at a discount

169
Q

What is the bond issue called when the effective interest rate < coupon rate?

A

Issued at a premium

170
Q

What is a bond?

A

A contractual promise between a borrower (the bond issuer) and a lender (the bondholder) that obligates the bond issuer to make payments to the bondholder over the term of the bond.

171
Q

What method do you use to account for bonds under IFRS?

A

The effective interest rate method

172
Q

What are zero coupon bonds also known as?

A

Pure discount bonds

173
Q

For bond computations, does the interest expense computation change if the EIR changes?

A

No

174
Q

Restrictions imposed by the lender on the borrower to protect the lenders financial position, are also known as …?

A

Negative covenants

175
Q

Borrower agrees to take certain actions on its existing debt - such as make regular payments, maintain certain ratios, maintain quality of collateral and pay taxes, are also known as….?

A

Affirmative covenants

176
Q

What is the benefit of covenants to a bondholder?

A

Protect bondholders from actions the issuer may take that would harm the value of the bondholders’ claims to the firm’s assets and earnings

177
Q

Bondholders can demand immediate repayment of principal if the firm violates a covenant, is also known as…?

A

Technical default

178
Q

What are the benefits to the lessee of leasing an asset rather than buying it

A 
Short period of use
Cheaper financing
No down payment
Fixed rates
May have fewer covenants
Less obsolescence risk
179
Q

What is the formula for the net pension asset / obligation?

A

Net pension obligation = FV of plan obligations - FV of plan assets

180
Q

What is a defined benefit pension scheme?

A

The employer promises to make periodic payments to employees after retirement

181
Q

What is a defined contribution pension plan?

A

A retirement plan in which the firm contributes a sum each period to the employee’s retirement account. The investment decisions are left to the employee, who assumes all of the investment risk

CFA Exam Level 1 (10 decks)

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