{"id": "en-task1-final-hidden-001", "question": "Products that are identified in the BCG Growth‐Share Matrix as cash cows possess relatively", "options": {"A": "high market share in a low‐growth market.", "B": "low market share in a high‐growth market.", "C": "high market share in a high‐growth market.", "D": "low market share in a low‐growth market."}, "num_choices": 4}
{"id": "en-task1-final-hidden-002", "question": "The price of a bond now is $116.73 and the current yield is 5%. The modified duration of the bond is 8.14. The yield changes to 6.30%. Calculate the new price of the bond.", "options": {"A": "105.698", "B": "135.628", "C": "104.378", "D": "114.237", "E": "125.23"}, "num_choices": 5}
{"id": "en-task1-final-hidden-003", "question": "Two taxpayers married on November 30. That same year, the husband enrolled in an accredited college to further his career and subsequently received a Form 1098-T, Tuition Statement. The wife was employed with an income of $45,000 and paid for the husband's education expenses. The taxpayers did not receive any other income for the year. Based on their circumstances, what is the correct method to report the education credit?", "options": {"A": "Taxpayers must file a joint return to claim an education credit", "B": "Based on the wife's AGI, they do not qualify to claim an education credit", "C": "Husband is ineligible to claim an education credit because the wife paid his education expenses", "D": "Wife should report nonqualified education expenses on Form 8863, Education Credits (American Opportunity and Lifetime Learning Credits)"}, "num_choices": 4}
{"id": "en-task1-final-hidden-004", "question": "What’s the amount of goodwill reported on Fisher SCG’s balance sheet immediately following the purchase of Yummy Bars?", "options": {"A": "$0.", "B": "$45 million.", "C": "$94 million."}, "num_choices": 3}
{"id": "en-task1-final-hidden-005", "question": "Giovannah manages a thematic fund that seeks exposure to sustainable food. As a result, her portfolio likely has an overweight in consumer staples, consumer discretionary, and materials. As she seeks to evolve her ESG approach, she is considering implementing an additional negative screening method that excludes companies that violate planetary boundaries. As she refines her process, she notes that the materials sector is most likely to be affected. Which companies within the materials sector might be most likely to be affected by the “nitrogen and phosphorus pollution” planetary boundary?", "options": {"A": "Iron Ore Producers", "B": "Fertilizer Producers", "C": "Food Producers"}, "num_choices": 3}
{"id": "en-task1-final-hidden-006", "question": "A primary advantage of an ERP system is", "options": {"A": "program-data dependence.", "B": "separate data updating for different functions.", "C": "data redundancy.", "D": "centralization of data."}, "num_choices": 4}
{"id": "en-task1-final-hidden-007", "question": "Given that the length of time (in days) until a claim is filed with an insurance company is an exponential random variable with \\(\\lambda=.05\\), and the length of time until the claim is paid after it is filed is an exponential random variable with \\(\\lambda=.10\\) and is independent of the length of time until a claim is filed, find \\(SD\\left(X+Y\\right)\\).", "options": {"A": "10", "B": "15", "C": "22", "D": "22", "E": "25"}, "num_choices": 5}
{"id": "en-task1-final-hidden-008", "question": "A company reported first quarter revenues of $10,000,000, gross profit margin of 25%, and operating income of 15%. To reduce overhead expenses, a consultant recommends that the company outsource some of its operating activities beginning with the second quarter. This recommendation is anticipated to reduce operating expenses by 20% without affecting sales volume. The company has an income tax rate of 35%. Assuming cost of sales remains at 75%, what is the impact on the income statement if the company implements the recommendation?", "options": {"A": "Gross profit will increase by 8.0%.", "B": "Operating income will increase by 8.7%.", "C": "Operating income will increase by $200,000.", "D": "Operating expenses will be reduced by $300,000."}, "num_choices": 4}
{"id": "en-task1-final-hidden-009", "question": "Johnson waits two hours in line to buy a ticket to an NCAA Final Four Tournament game. The opportunity cost of buying the $200 ticket is", "options": {"A": "Johnson’s best alternative use of the $200.", "B": "Johnson’s best alternative use of the two hours it took to wait in line.", "C": "the value of the $200 to the ticket agent.", "D": "Johnson’s best alternative use of both the $200 and the two hours spent in line."}, "num_choices": 4}
{"id": "en-task1-final-hidden-010", "question": "After leading the market for the past decade, the growth of product ABC is slowing down. In this stage of its life cycle, the product is still generating significant amounts of cash flows that cover the company’s investment into new product innovations. According to the BCG Growth-Share Matrix, product ABC is most likely an example of a", "options": {"A": "star.", "B": "cash cow.", "C": "question mark.", "D": "dog."}, "num_choices": 4}
{"id": "en-task1-final-hidden-011", "question": "A company incurred $200,000 of manufacturing cost during the month, with a beginning finished goods inventory of $20,000 and an ending finished goods inventory of $15,000. Assuming no work‐in‐process inventories, the company's cost of goods sold was", "options": {"A": "$220,000.", "B": "$205,000.", "C": "$200,000", "D": "$105,000"}, "num_choices": 4}
{"id": "en-task1-final-hidden-012", "question": "In the lead-up to the 2007/2009 financial crisis, Lehman Brothers had positioned itself as the leading institution in the mortgage-backed securities market. Which of the following best explains why the firm failed so spectacularly despite boasting huge amounts of capital?", "options": {"A": "The firm was highly leveraged, reducing its ability to absorb losses", "B": "A large number of the firm’s mortgage-backed securities were built upon sub-prime mortgage assets", "C": "The firm was considered too big to fail", "D": "A lack of confidence among investors which in turn led to a lack of funding"}, "num_choices": 4}
{"id": "en-task1-final-hidden-013", "question": "According to U.S. GAAP, where on the income statement should a multinational company report the loss from the disposal sale of a major operating unit?", "options": {"A": "Report the loss, pretax, in a separate section between income from continuing operations and net income.", "B": "Report the loss, net of tax, in a separate section between income from continuing operations and net income.", "C": "Report the loss, pretax, in a separate section between income from operations and income before income tax.", "D": "Report the loss, net of tax, in a separate section between income before tax and net income."}, "num_choices": 4}
{"id": "en-task1-final-hidden-014", "question": "Which one of following budgets is regarded as the foundation of the master budget?", "options": {"A": "Production", "B": "Sales", "C": "Operating", "D": "Cash"}, "num_choices": 4}
{"id": "en-task1-final-hidden-015", "question": "Bruce Craig is in the business of trading steel in Chicago, which he inherited from his father one month ago. His financial adviser notes the following aspects of his situation: He is 24 years old; His investment horizon is 10-20 years; His primary objective for investing is aggressive growth; His business returns are not stable as he is not being able to take prudent business decisions. Given the information above, which of the following statements is most likely correct? Craig has a:", "options": {"A": "low ability to take risk, but a high willingness to take risk.", "B": "high ability to take risk, but a low willingness to take risk.", "C": "high ability to take risk, but a high willingness to take risk."}, "num_choices": 3}
{"id": "en-task1-final-hidden-016", "question": "A company's management is planning on making an investment of $800,000 to launch a new product. In the first year, the new product is expected to generate sales of $200,000 and a contribution margin of $175,000. Incremental fixed costs are $50,000. The company's expected return on investment (ROI) in the first year is\nclosest\nto", "options": {"A": "6%.", "B": "16%.", "C": "22%.", "D": "25%."}, "num_choices": 4}
{"id": "en-task1-final-hidden-017", "question": "An investment strategy achieves a nominal rate of 10%. The nominal rate is compounded once in year 1, twice in year 2, 3 times in year 3, etc. Calculate the amount that must be invested today in order to accumulate 5,000 after 4 years.", "options": {"A": "2,450.23", "B": "2,584.36", "C": "2,584.25", "D": "2,054.98", "E": "3,385.18"}, "num_choices": 5}
{"id": "en-task1-final-hidden-018", "question": "Which of the following statements is most accurate? Ethics can be described as:", "options": {"A": "A commitment to upholding the law", "B": "An individual’s personal opinion about right and wrong", "C": "A set of moral principles that provide guidance for our behavior"}, "num_choices": 3}
{"id": "en-task1-final-hidden-019", "question": "In order to avoid pitfalls in relevant-cost analysis, management should focus on", "options": {"A": "variable cost items that differ for each alternative.", "B": "long-run fixed costs of each alternative.", "C": "anticipated fixed costs and variable costs of all alternatives.", "D": "anticipated revenues and costs that differ for each alternative."}, "num_choices": 4}
{"id": "en-task1-final-hidden-020", "question": "An analyst gathered the following information from a company’s 2018 financial statements (in $ millions):$$ \\textbf{Balances as of Year Ended 31 Dec} & \\textbf{2017} & \\textbf{2018} \\\\ \\hline \\text{Retained Earnings} & \\text{150} & \\text{175} \\\\ \\text{Accounts Receivable} & \\text{68} & \\text{73} \\\\ \\text{Inventory} & \\text{75} & \\text{78} \\\\ \\text{Accounts Payable} & \\text{66} & \\text{59} \\\\ \\end{array} $$In 2018, the company paid cash dividends of $40 million and recorded $55 million in depreciation expense. The company considers dividends paid a financing activity. Given this information, the company’s 2018 cash flow from operations (in $ millions) was closest to :", "options": {"A": "$105.", "B": "$110.", "C": "$112."}, "num_choices": 3}
{"id": "en-task1-final-hidden-021", "question": "The yield curve shows the relationship between bond yields that differ by the", "options": {"A": "credit risk of the issuer of the bonds.", "B": "dividend yield of the issuer of the bonds.", "C": "par value of the bonds.", "D": "years to maturity of the bonds."}, "num_choices": 4}
{"id": "en-task1-final-hidden-022", "question": "The standard deduction is increased for individuals who are:", "options": {"A": "Age 65 and older and/or blind", "B": "Retired from the military", "C": "A beneficiary of a trust", "D": "Receiving unemployment compensation"}, "num_choices": 4}
{"id": "en-task1-final-hidden-023", "question": "Which one of the following auditor findings would most likely raise a red flag about a company’s internal control environment?", "options": {"A": "The company has an established independent audit committee.", "B": "Only select committees of the board have access to outside attorneys.", "C": "The roles of the company’s CEO and board chairman are separate.", "D": "The board nominations committee selects only independent directors."}, "num_choices": 4}
{"id": "en-task1-final-hidden-024", "question": "The acid test ratio shows the ability of a company to pay its current liabilities without having to:", "options": {"A": "reduce its cash balance.", "B": "borrow additional funds.", "C": "collect its receivables.", "D": "liquidate its inventory."}, "num_choices": 4}
{"id": "en-task1-final-hidden-025", "question": "Which of the following statements about exchange-traded funds is most correct ?", "options": {"A": "Exchange-traded funds are not backed by any assets", "B": "The investment companies that create exchange-traded funds are financial intermediaries", "C": "The transaction costs of trading shares of exchange-traded funds are substantially greater than the combined costs of trading the underlying assets of the fund"}, "num_choices": 3}
{"id": "en-task1-final-hidden-026", "question": "Melissa Jacobs is an Analyst for ABC Investments. She is an expert in the area of agriculture production in the United States. In her free time, Jacobs maintains a blog related to the food industry. She uses a pseudonym for the blog, in order to maintain her privacy. Her latest blog post includes a negative review of Market Basket Corporation in which she suggested to her readers that they sell the company’s stock. Jacobs knows from inside sources that within the following week, Market Basket’s stock will be listed as a ‘sell’. With regard to the CFA Institute Code and Standards, which of the following is least likely accurate?", "options": {"A": ": Material Non-public Information by making a recommendation based on the knowledge that was material and non-public.", "B": "Jacobs violated IV(", "C": "Jacobs violated Standard II("}, "num_choices": 3}
{"id": "en-task1-final-hidden-027", "question": "Aril Industries is a multiproduct company that currently manufactures 30,000 units of Part 730 each month for use in production. The facilities now being used to produce Part 730 have fixed monthly overhead costs of $150,000 and a theoretical capacity to produce 60,000 units per month. If Aril were to buy Part 730 from an outside supplier, the facilities would be idle and 40% of fixed costs would continue to be incurred. There are no alternative uses for the facilities. The variable production costs of Part 730 are $11 per unit. Fixed overhead is allocated based on planned production levels. If Aril Industries continues to use 30,000 units of Part 730 each month, it would realize a net benefit by purchasing Part 730 from an outside supplier only if the supplier’s unit price is less than", "options": {"A": "$12.00.", "B": "$12.50.", "C": "$13.00.", "D": "$14.00."}, "num_choices": 4}
{"id": "en-task1-final-hidden-028", "question": "On July 15, a company entered into a three-month agreement to rent a machine the company needed to complete a special order. The machine would be delivered on August 1, and rental payments are due on the first day of each rental month. The effect this event would have on the company’s July 31 financial statements would be to", "options": {"A": "cause no change in assets, liabilities, or income.", "B": "increase both assets and income.", "C": "increase both assets and liabilities.", "D": "increase liabilities and decrease income."}, "num_choices": 4}
{"id": "en-task1-final-hidden-029", "question": "BusyBee Cleaning Co. is evaluating its costs to clean a standard office. The controller has done a linear regression of the hours spent cleaning various offices and the total costs (labor, supplies, transportation) for each office cleaned. The regression analysis yielded the following information.\nWhat is the\nbest\ndescription of the costs of cleaning an office based on this regression analysis?\nItems:\n- y\n= $25\nx\n+ $75\n- y\n= total cost to clean an office\n- y\n= hours spent cleaning an office", "options": {"A": "The cost is $100 per hour to clean an office.", "B": "There is $25 of fixed costs and $75 of variable costs per hour to clean an office.", "C": "There is $25 of variable costs per hour and $75 of fixed costs to clean an office.", "D": "The cost is $25 per hour to clean an office."}, "num_choices": 4}
{"id": "en-task1-final-hidden-030", "question": "An enrolled agent prepared an individual income tax return for a taxpayer with a balance due of $25,597. The taxpayer is not able to pay the entire amount upon filing and would like to set up an installment agreement. Which of the following statements are correct about this agreement?", "options": {"A": "Since the taxpayer owed more than $25,000 the taxpayer may not apply online", "B": "The taxpayer will not be charged a user fee to set up this installment agreement", "C": "The taxpayer must be in filing compliance", "D": "The taxpayer will not be charged interest and penalties while making installment payments"}, "num_choices": 4}
{"id": "en-task1-final-hidden-031", "question": "All of the following are affected when merchandise is purchased on credit except", "options": {"A": "total current assets.", "B": "net working capital.", "C": "total current liabilities.", "D": "current ratio."}, "num_choices": 4}
{"id": "en-task1-final-hidden-032", "question": "Jason Tyler has invested $100,000 in the shares of Kraken Corp. To calculate the market risk of his portfolio, Tyler gathers the monthly returns for the security over the last 500 months. The ten worst returns during this period were as follows: -19%, -24%, -27%, -23%, -20%, -16%, -21%, -22%, -18%, -30% What is the monthly VaR for Tyler’s investment using a confidence level of 99%?", "options": {"A": "$16,000", "B": "$22,000", "C": "$21,000", "D": "$20,000"}, "num_choices": 4}
{"id": "en-task1-final-hidden-033", "question": "Which of the following is correct regarding a corporation electing S corporation status?", "options": {"A": "A corporation can have no more than 75 shareholders", "B": "Voting and non-voting stock in a corporation will prevent S corporation election", "C": "A non-resident alien shareholder will prevent S corporation election", "D": "Spouses are treated as two separate shareholders when considering the maximum number of shareholders to qualify for S corporation election"}, "num_choices": 4}
{"id": "en-task1-final-hidden-034", "question": "A company uses the calendar year as its financial results reporting time period. On May 31 of the prior year, the company committed to a plan to sell a line of business. As a result, the operation of this line of business and cash flows will be eliminated from the company's operations, and the company will have no significant continuing involvement with the line of business subsequent to the disposal. For the period January 1 through May 31of the prior year, the line of business had revenues of $1,000,000 and expenses of $1,600,000. The assets of the line of business were sold on November 30 at a loss for which no tax benefit is available. In its income statement for the year ended December 31of prior year, how should the company report the line of business operations from January 1 through May 31?", "options": {"A": "$600,000 should be reported as part of the loss on disposal of a component.", "B": "$600,000 should be reported as an extraordinary loss.", "C": "$600,000 should be included in the determination of income or loss from operations of a discontinued component.", "D": "$1,000,000 and $1,600,000 should be included with revenues and expenses, respectively, as part of continuing operations."}, "num_choices": 4}
{"id": "en-task1-final-hidden-035", "question": "Which of the following is a disadvantage of using debt financing versus equity financing?", "options": {"A": "Debt financing can dilute current owners’ ownership percentage.", "B": "Debt financing usually has a lower cost of capital than equity financing.", "C": "Debt financing usually has higher underwriting costs than equity financing.", "D": "Debt financing can result in restrictive covenants."}, "num_choices": 4}
{"id": "en-task1-final-hidden-036", "question": "Which of the following is the effect on the WACC if the tax rate decreases? WACC will:", "options": {"A": "increase.", "B": "decrease.", "C": "not be affected."}, "num_choices": 3}
{"id": "en-task1-final-hidden-037", "question": "Which one of the following options allow multiple employees to use a browser to remotely access and use one application software?", "options": {"A": "Virtualization.", "B": "Cloud computing.", "C": "Distributed ledger.", "D": "Blockchain."}, "num_choices": 4}
{"id": "en-task1-final-hidden-038", "question": "Generally, if you are required to account for inventories you must include which of the following:", "options": {"A": "IRS interest and penalties", "B": "Raw materials", "C": "Donations of items to charity", "D": "Supplies that are not related to the item intended for sale"}, "num_choices": 4}
{"id": "en-task1-final-hidden-039", "question": "How many future years will the IRS record to the Centralized Authentication File (CAF) at the taxpayer’s request based on receipt of a valid Form 2848 authorizing representation for tax years or periods?", "options": {"A": "December 31 of year of receipt + 1 year", "B": "December 31 of year of receipt + 2 years", "C": "December 31 of year of receipt + 3 years", "D": "December 31 of year of receipt + 4 years"}, "num_choices": 4}
{"id": "en-task1-final-hidden-040", "question": "Which one of the following best describes data mining?", "options": {"A": "Searching through large amounts of computerized data to find useful patterns and trends.", "B": "Examining raw data in order to draw conclusions from that data.", "C": "Integrating data, technology, and analytics to optimize business decisions.", "D": "Inspecting, cleansing, revising, and modeling raw data in order to find valuable data."}, "num_choices": 4}
{"id": "en-task1-final-hidden-041", "question": "Samar Sarkar Brokerage specializes in providing margin loans to U.S. hedge funds that intend to buy securities on margin. One of the brokerage’s clients, Xenon Hedge Fund, wants to take a $3,000,000 equity position while putting up the minimum equity amount required by the Federal Reserve. Determine the margin loan amount and the leverage ratio of this position.", "options": {"A": "Margin Loan $3,000,000; Leverage Ratio 1.0", "B": "Margin Loan $1,500,000; Leverage Ratio 1.0", "C": "Margin Loan $1,500,000; Leverage Ratio 2.0", "D": "Margin Loan $3,000,000; Leverage Ratio 0.0"}, "num_choices": 4}
{"id": "en-task1-final-hidden-042", "question": "Highlight Inc. uses a standard cost system and applies factory overhead to products on the basis of direct labor hours. If the company recently reported a favorable direct labor efficiency variance, then the", "options": {"A": "variable overhead spending variance must be favorable.", "B": "variable overhead efficiency variance must be favorable.", "C": "fixed overhead volume variance must be unfavorable.", "D": "direct labor rate variance must be unfavorable."}, "num_choices": 4}
{"id": "en-task1-final-hidden-043", "question": "A company has a direct labor price variance that is favorable. Of the following, the most serious concern the company may have about this variance is that", "options": {"A": "the circumstances giving rise to the favorable variance will not continue in the future.", "B": "the production manager may not be using human resources as efficiently as possible.", "C": "the cause of the favorable variance may result in other larger unfavorable variances in the value-chain.", "D": "actual production is less than budgeted production."}, "num_choices": 4}
{"id": "en-task1-final-hidden-044", "question": "Blue Fox Industries had the following account balances at year‐end.\nWhat is the amount of total current assets reported on the balance sheet?", "options": {"A": "$35,000", "B": "$39,900", "C": "$32,800", "D": "$63,800"}, "num_choices": 4}
{"id": "en-task1-final-hidden-045", "question": "An analyst prepared a forecast using newly developed system features. The analyst recently left the company, and her replacement was unable to understand how to use these system functionalities. In accordance with system development life cycle (SDLC) best practices, which one of the following controls would have prevented this situation from occurring?", "options": {"A": "End-user computing efforts are outlined.", "B": "Documentation standards and procedures are developed.", "C": "Backup activities and requirements are put into place.", "D": "Changes made to the system are monitored and evaluated."}, "num_choices": 4}
{"id": "en-task1-final-hidden-046", "question": "Alex Warner works as the senior derivatives manager at Warner Traders Limited. He’s currently managing a $120 million portfolio consisting of medium to large-cap U.S. equity. Warner wishes to lock up profit made during a recent rally and intends to use the S&P 500 futures with a multiplier of 250. At the moment, the S&P 500 and its futures are trading at USD 4,300 and USD 4,360, respectively, and Warner would like to hedge three-quarters of his market exposure over a three-month period. Warner’s portfolio has a correlation of 0.8 with the S&P 500 index futures, and the volatilities of the equity fund and the index futures are 0.55 and 0.50, respectively. To achieve his objective, Warner should:", "options": {"A": "Sell 73 futures contracts", "B": "Sell 61 futures contracts", "C": "Buy 61 futures contracts", "D": "Buy 73 futures contracts"}, "num_choices": 4}
{"id": "en-task1-final-hidden-047", "question": "Which of the following is true regarding distributions from an S corporation?", "options": {"A": "Distributions do not include cash, only property", "B": "Distributions of appreciated property are valued at the fair market value on original date of purchase", "C": "Dividends paid to shareholders from accumulated earnings and profits are reported on Schedule K-1", "D": "Property distributions (except for cash) require a statement attached to the Form 1120S reporting the date the property was acquired, the distribution date, the property’s fair market value on the distribution date and the basis in the property distributed"}, "num_choices": 4}
{"id": "en-task1-final-hidden-048", "question": "A company is evaluating a project with the following expected cash flows. Year Cash Flow 0 $(10,000) 1 4,000 2 4,000 3 4,000 4 4,000 If the company’s cost of capital is 10%, what is the project’s profitability index?", "options": {"A": "1.27.", "B": "1.60.", "C": "1.86.", "D": "2.50."}, "num_choices": 4}
{"id": "en-task1-final-hidden-049", "question": "How does IFRS differ from U.S. GAAP with respect to accounting for development costs?", "options": {"A": "U.S. GAAP does not allow capitalization of development costs until technically feasible, whereas IFRS does.", "B": "U.S. GAAP requires capitalization of development costs, whereas IFRS makes capitalization of these costs optional.", "C": "U.S. GAAP treats development costs as part of goodwill, whereas IFRS treats these costs as an intangible asset.", "D": "U.S. GAAP requires expensing of all development costs, and IFRS requires capitalizing all development costs."}, "num_choices": 4}
{"id": "en-task1-final-hidden-050", "question": "An exponential moving average", "options": {"A": "gives more weight to the most recent observation.", "B": "gives less weight to the most recent observation.", "C": "gives equal weight to all observations.", "D": "does not suffer from any lag."}, "num_choices": 4}
{"id": "en-task1-final-hidden-051", "question": "A company's master budget for the year planned that the company would manufacture and sell 2,000 units for €500,000 in sales, €350,000 in variable expenses, and €45,000 in fixed expenses. If the company manufactured and sold only 1,750 units during the year, how much is the company's flexible budget operating income?", "options": {"A": "€42,500", "B": "€86,250.", "C": "€91,875", "D": "€105,000"}, "num_choices": 4}
{"id": "en-task1-final-hidden-052", "question": "In a falling market, what does a rising relative strength line for a stock indicate?", "options": {"A": "The stock price and volume are diverging.", "B": "The stock is performing worse than the market.", "C": "The stock is performing better than the market.", "D": "The stock may be moving into an overbought state."}, "num_choices": 4}
{"id": "en-task1-final-hidden-053", "question": "Which of the following is most accurate about the orders in the Order Management System?", "options": {"A": "The order in Stock A is most suited for a VWAP algorithm, and the order in Stock B should be traded using an implementation shortfall algorithm.", "B": "The orders in Stock B and C are most suited for a logical participation strategy, whereas the order in Stock A should be traded on a crossing system.", "C": "The order in Stock B should be traded on a crossing system, whereas the order in Stock C is most suitable for trading through a broker."}, "num_choices": 3}
{"id": "en-task1-final-hidden-054", "question": "Projected sales for a tent manufacturer are $510,000. Each tent sells for $850 and requires $350 of variable costs to produce. The tent manufacturer’s total fixed costs are $145,000. The tent manufacturer’s margin of safety is", "options": {"A": "310 units.", "B": "710 units.", "C": "730 units.", "D": "1,310 units."}, "num_choices": 4}
{"id": "en-task1-final-hidden-055", "question": "If the present value of expected cash inflows from a project equals the present value of expected cash outflows, the discount rate is the", "options": {"A": "payback rate.", "B": "internal rate of return.", "C": "accounting rate of return.", "D": "net present value rate."}, "num_choices": 4}
{"id": "en-task1-final-hidden-056", "question": "In situations where it is crucial that data be entered correctly into an accounting information system, the best method of data control would be to use", "options": {"A": "key verification.", "B": "compatibility tests.", "C": "limit checks", "D": "reasonableness tests."}, "num_choices": 4}
{"id": "en-task1-final-hidden-057", "question": "Suppose SCG acquired just 18% of Yummy Bars. Would the society have significant influence over the associate?", "options": {"A": "No, significant influence can only be exercised with a minimum of 30% of voting rights", "B": "Yes, provided SCG holds at least 50% of board positions", "C": "Yes, provided SCG is represented in the board"}, "num_choices": 3}
{"id": "en-task1-final-hidden-058", "question": "Which of the following would be included in the gross receipts of a business?", "options": {"A": "Canceled debt to the extent the payment of the debt would have led to a deduction", "B": "Sales taxes imposed on the buyer and collected by a business using the cash accounting method", "C": "The customer’s original cost of property the business received in exchange for a good or service bartered", "D": "Sales made but income not collected during the tax year for a business using an accrual accounting method"}, "num_choices": 4}
{"id": "en-task1-final-hidden-059", "question": "The major feature of zero‐based budgeting is that it", "options": {"A": "assumes all activities are legitimate and worthy of receiving budget increases to cover any increased costs.", "B": "evaluates each activity and determines whether it should be maintained as it is, reduced, or eliminated.", "C": "uses the previous year's budget and adjusts it for inflation.", "D": "focuses on planned capital outlays for property, plant, and equipment."}, "num_choices": 4}
{"id": "en-task1-final-hidden-060", "question": "All of the following would increase the present value of the incremental tax savings associated with the depreciation of an asset except a decrease in the", "options": {"A": "useful life of the asset.", "B": "marginal income tax rate.", "C": "discount rate.", "D": "salvage value of the asset."}, "num_choices": 4}
{"id": "en-task1-final-hidden-061", "question": "For its fiscal year-end, Sublyme Corporation reported net income of USD200 million and a weighted average of 50,000,000 common shares outstanding. There are 2,000,000 convertible preferred shares outstanding that paid an annual dividend of USD5. Each preferred share is convertible into two shares of the common stock. The diluted EPS is closest to:", "options": {"A": "USD3.52", "B": "USD3.65", "C": "USD3.70"}, "num_choices": 3}
{"id": "en-task1-final-hidden-062", "question": "(Bayes Theorem) A test for heart disease results in a false positive 5% of the time. 25% of the population has heart disease and 20% test positive. Given a negative test, what is the probability the patient does not have heart disease?", "options": {"A": "67%", "B": "70%", "C": "55%", "D": "87%", "E": "93%"}, "num_choices": 5}
{"id": "en-task1-final-hidden-063", "question": "In relation to the principles of technical analysis, the phrase “patterns are fractal” refers to the assumption that", "options": {"A": "patterns tend to break existing trends.", "B": "Mandelbrot originated the concept of chart patterns.", "C": "pattern analysis is universal and independent of time.", "D": "chart patterns found in an intraday chart can generate signals in a daily chart."}, "num_choices": 4}
{"id": "en-task1-final-hidden-064", "question": "Ready? CFA level 1 practice questions below to assess your exam readiness. Then, read the detailed answers to understand the concept. Let’s Go! Question 1 Ethical and Professional Standards Nayri Avaikan, CFA, is working as an investment advisor with Allstar Investors. She has recently finished her report on Ocado Inc. and concluded that it is a great ‘buy’ with 35% upside potential at the current market price. She wrote to all her suitable clients: “At current market prices, based on my research, I believe Ocado Inc. is massively underpriced, and I would recommend a ‘strong buy’ with 35% upside potential. Please find attached my detailed research report. I have also included all the relevant data used in my research and formed the basis for this decision. Please let me know if you need further explanation or documentation.” After sending the email, she informed her major clients about Ocado Ins. by calling them individually. Avaikan has most likely :", "options": {"A": "violated Standard III(", "B": "violated Standard I(", "C": "not violated any CFA Institute Code and Standards."}, "num_choices": 3}
{"id": "en-task1-final-hidden-065", "question": "If the VIX is quoted at 20, it indicates the market is expecting a movement of about ________ percent over the next 30 days.", "options": {"A": "3.33", "B": "3.77", "C": "5.07", "D": "5.77"}, "num_choices": 4}
{"id": "en-task1-final-hidden-066", "question": "When assessing a company’s internal control structure policies and procedures, the primary consideration is whether they", "options": {"A": "prevent management override.", "B": "relate to the control environment.", "C": "reflect management’s philosophy and operating style.", "D": "affect the financial statement assertions."}, "num_choices": 4}
{"id": "en-task1-final-hidden-067", "question": "The computation of recapture amounts is not necessary when the business use percentage of Section 179 or listed property exceeds:", "options": {"A": "10%", "B": "25%", "C": "45%", "D": "50%"}, "num_choices": 4}
{"id": "en-task1-final-hidden-068", "question": "The concurrent action of basic competitive forces as defined by Porter’s 5 forces model determines the", "options": {"A": "strategy that a firm should follow to achieve its objectives.", "B": "rivalry inside the industry.", "C": "entrance barriers that potential players must face to get into the industry.", "D": "long-term profitability and the competitive intensity of the industry."}, "num_choices": 4}
{"id": "en-task1-final-hidden-069", "question": "In order to properly segregate duties, which role within the computer department should be responsible for reprocessing the errors detected during the processing of data?", "options": {"A": "Department manager.", "B": "Systems analyst.", "C": "Computer programmer.", "D": "Data control group."}, "num_choices": 4}
{"id": "en-task1-final-hidden-070", "question": "A newly employed quantitative analyst at the risk management department of a systematically important bank (SIB) has developed a new risk measure ( p ) that could prove applicable to a wide range of risks at the bank. During validation and testing by an independent panel, she is asked to demonstrate that her measure is a coherent risk measure. She proceeds to formulate the following values: There are two portfolios – Y and Z y and z are state-contingent values of portfolios Y and Z, respectively P(y) and p(z) are the risk measures of the two portfolios b and c are constants where b > 0 n is an amount in dollars Which of the following equations effectively rules out p as a coherent risk measure?", "options": {"A": "P (y + z) ≤ p (y) + p (z)", "B": "P (by) ≤ b P (y)", "C": "= p (z) – c}$$", "D": "$$\\text{ P (y +"}, "num_choices": 4}
{"id": "en-task1-final-hidden-071", "question": "A capital investment project has the following expected incremental values next year. Revenue $1,000,000 Operating costs 200,000 Depreciation 300,000 If the income tax rate is 25%, the incremental after-tax operating cash flow is", "options": {"A": "$125,000.", "B": "$375,000.", "C": "$675,000.", "D": "$900,000."}, "num_choices": 4}
{"id": "en-task1-final-hidden-072", "question": "A company is headquartered in the U.S. and has international subsidiaries in several countries. One of the company’s international subsidiaries created several off-the-book accounts to pay bribes to foreign officials, and these payments were not properly reflected in the subsidiary’s books and records. The subsidiary has certain internal controls in place but does not utilize the COSO internal controls framework and does not have a compliance program in place. Based on the information presented, all of the following are violations by the subsidiary under the internal control provisions of the U.S. Foreign Corrupt Practices Act except the", "options": {"A": "use of bribery payments.", "B": "failure to use the COSO framework for internal controls.", "C": "failure to have internal controls to ensure that transactions were appropriately recorded.", "D": "lack of a compliance program as part of its system of internal controls."}, "num_choices": 4}
{"id": "en-task1-final-hidden-073", "question": "A company prepared a master budget based on 100 budgeted sales units with a $100 sales price per unit, a variable cost per unit of $50, and $2,000 in total fixed cost. The actual sales quantity was 70 units. When preparing a flexible budget, the operating income would be", "options": {"A": "$1,500.", "B": "$3,000.", "C": "$3,500.", "D": "$5,000."}, "num_choices": 4}
{"id": "en-task1-final-hidden-074", "question": "To avoid imposition of the accuracy-related penalty for a substantial understatement of income tax, which of the following is a type of authority that may be relied upon by the taxpayer to try to show substantial authority for the tax treatment of an item?", "options": {"A": "www.IRS.gov", "B": "Treasury regulations", "C": "IRS Forms", "D": "IRS Publications"}, "num_choices": 4}
{"id": "en-task1-final-hidden-075", "question": "The statement of shareholders’ equity shows a", "options": {"A": "reconciliation of the beginning and ending balances in shareholders’ equity accounts.", "B": "listing of all shareholders’ equity accounts and their corresponding dollar amounts.", "C": "computation of the number of shares outstanding used for earnings per share calculations.", "D": "reconciliation of the beginning and ending balances in the Retained Earnings account."}, "num_choices": 4}
{"id": "en-task1-final-hidden-076", "question": "An IMA member discovers a problem that could mislead users of the firm’s financial data and has informed his immediate superior. The member should report the circumstances to the audit committee and/or the Board of Directors only if the immediate superior", "options": {"A": "is the firm’s chief executive officer and knows about the situation but refuses to correct it.", "B": "reports to the chief executive officer and knows about the situation but refuses to correct it.", "C": "assures the member that the problem will be resolved.", "D": "reports the situation to her superior."}, "num_choices": 4}
{"id": "en-task1-final-hidden-077", "question": "A hotel chain allows its customers to sign up for its loyalty program online. Management discovered that many customers misspelled their mailing addresses when inputting their personal information. The company revised the online form so that the customer can only select from a list of cities and streets instead of typing in their own addresses. This measure is an example of managing the data’s", "options": {"A": "availability.", "B": "integrity.", "C": "usability.", "D": "security."}, "num_choices": 4}
{"id": "en-task1-final-hidden-078", "question": "James Hemming, the chief financial officer of a mid-western machine parts manufacturer, is considering splitting the company’s\nstock, which is currently selling at $80.00 per share. The stock currently pays a $1.00 per share dividend. If the split is two-for-\none, Mr. Hemming may expect the post split price to be", "options": {"A": "exactly $40.00, regardless of dividend policy.", "B": "greater than $40.00, if the dividend is changed to $0.45 per new share.", "C": "greater than $40.00, if the dividend is changed to $0.55 per new share.", "D": "less than $40.00, regardless of dividend policy."}, "num_choices": 4}
{"id": "en-task1-final-hidden-079", "question": "Which one of the following provides the best measure of interest rate risk for a corporate bond?", "options": {"A": "Duration.", "B": "Yield to maturity.", "C": "Bond rating.", "D": "Maturity."}, "num_choices": 4}
{"id": "en-task1-final-hidden-080", "question": "A continuous budget is one that", "options": {"A": "is adjusted throughout the period for changing environmental factors.", "B": "is available for a specified future period by adding a period to the period that just ended.", "C": "is created after the organization has been operating for at least one period.", "D": "uses the prior period's actual results as the current period's budget."}, "num_choices": 4}
{"id": "en-task1-final-hidden-081", "question": "A 62-year-old, married taxpayer files Married Filing Separately, and lives apart from the spouse for the entire taxable year. What is the taxpayer's base amount for computing taxable social security benefits for the taxable year?", "options": {"A": "Zero", "B": "$9,000", "C": "$25,000", "D": "$32,000"}, "num_choices": 4}
{"id": "en-task1-final-hidden-082", "question": "A company has developed and implemented a wireless charging feature into one of its flashlights. No other competitor in the marketplace currently offers this feature. In a marketing research study, the vast majority of consumers indicated that they would pay a premium for this feature. Which one of the following is the\nbest\nstrategy to bring this product to the market?", "options": {"A": "Porter's cost strategy", "B": "Porter's focus strategy", "C": "Porter's differentiation strategy", "D": "Porter's segmentation strategy"}, "num_choices": 4}
{"id": "en-task1-final-hidden-083", "question": "Which one of the following is in a company's cash budget?", "options": {"A": "Depreciation of plant equipment", "B": "Amortization of patent costs", "C": "Conversion of debt for equity", "D": "Disposal of land"}, "num_choices": 4}
{"id": "en-task1-final-hidden-084", "question": "What type of dependent variable is logistic regression used to predict?", "options": {"A": "Binary.", "B": "Continuous.", "C": "Ratio.", "D": "Time series data."}, "num_choices": 4}
{"id": "en-task1-final-hidden-085", "question": "A company's senior management has determined that the actual full cost will be used to determine the transfer price for goods sold from one division to another division. The selling division has excess capacity and can sell goods to other divisions or to outside customers at a higher price. An advantage of this transfer pricing model is that it", "options": {"A": "achieves goal congruence within the company.", "B": "is effective for performance evaluation.", "C": "motivates management to achieve cost‐effectiveness.", "D": "preserves each division's autonomy."}, "num_choices": 4}
{"id": "en-task1-final-hidden-086", "question": "Which of the following is true regarding the Report of Foreign Bank and Financial Accounts (FBAR) requirements:", "options": {"A": "The FinCEN Form 114 (FBAR) is filed online with the Financial Crimes Enforcement Network", "B": "The due date for the FBAR filing is generally July 15 of the current tax year for individuals", "C": "The FinCEN Form 114 (FBAR) is filed with the current tax year individual income tax return", "D": "FinCEN will not grant an automatic extension if unable to meet the FBAR annual due date"}, "num_choices": 4}
{"id": "en-task1-final-hidden-087", "question": "Manchester Airlines is in the process of preparing a contribution margin income statement that will allow a detailed look at its variable costs and profitability of operations. Which one of the following cost combinations should be used to evaluate the variable cost per flight of the company’s Boston-to-Las Vegas flights?", "options": {"A": "Flight crew salary, fuel, and engine maintenance.", "B": "Fuel, food service, and airport landing fees.", "C": "Airplane depreciation, baggage handling, and airline marketing.", "D": "Communication system operation, food service, and ramp personnel."}, "num_choices": 4}
{"id": "en-task1-final-hidden-088", "question": "Let \\(X_1,X_2\\) be independent random variables with the following pmf $$ f\\left( x \\right) =\\begin{cases} \\frac { 1 }{ 4 } & x=4 \\\\ \\frac { 1 }{ 2 } & x=5 \\\\ \\frac { 1 }{ 4 } & x=6 \\\\ 0, & otherwise \\end{cases} $$ Let \\(Y = X_1 + X_2\\).Find \\(Var\\left(Y\\right)\\) using moment generating function technique.", "options": {"A": "1", "B": "5", "C": "10", "D": "15", "E": "20"}, "num_choices": 5}
{"id": "en-task1-final-hidden-089", "question": "All of the following are limitations of the balance sheet\nexcept\nthat", "options": {"A": "the balance sheet is prepared using management judgments and estimates.", "B": "assets and liabilities are usually recorded at historical cost, which might differ significantly from current market value.", "C": "the balance sheet provides information on the liquidity and solvency of the company.", "D": "the balance sheet omits many items that cannot be recorded objectively but that have financial value to the company."}, "num_choices": 4}
{"id": "en-task1-final-hidden-090", "question": "For medical expenses to be deductible as an itemized deduction in the current year, the expense must exceed what percentage of adjusted gross income?", "options": {"A": "2.0%", "B": "7.5%", "C": "10%", "D": "Medical expenses are no longer deductible"}, "num_choices": 4}
{"id": "en-task1-final-hidden-091", "question": "The basic concepts implicit in internal accounting controls include the following. The cost of the system should not exceed the benefits expected to be attained. The overall impact of the control procedure should not hinder operating efficiency. Which one of the following recognizes these two factors?", "options": {"A": "Limitations.", "B": "Management responsibility.", "C": "Methods of data processing.", "D": "Reasonable assurance."}, "num_choices": 4}
{"id": "en-task1-final-hidden-092", "question": "Which of the following from Circular 230 is correct regarding sanctions against an enrolled agent (EA)?", "options": {"A": "There cannot be both monetary and nonmonetary sanctions imposed", "B": "An EA can face Imprisonment up to 3 years", "C": "An EA can be censured", "D": "A monetary penalty can exceed the gross income derived from the conduct giving rise to the penalty"}, "num_choices": 4}
{"id": "en-task1-final-hidden-093", "question": "Garner Products is considering a new accounts payable and cash disbursement process which is projected to add 3 days\nto the disbursement schedule without having significant negative effects on supplier relations. Daily cash outflows average\n$1,500,000. Garner is in a short-term borrowing position for 8 months of the year and in an investment position for 4 months.\nOn an annual basis, bank lending rates are expected to average 7% and marketable securities yields are expected to average\n4%. What is the maximum annual expense that Garner could incur for this new process and still break even?", "options": {"A": "$90,000.", "B": "$180,000.", "C": "$270,000.", "D": "$315,000."}, "num_choices": 4}
{"id": "en-task1-final-hidden-094", "question": "When reviewing a credit application, the credit manager should be most concerned with the applicant’s", "options": {"A": "profit margin and return on assets.", "B": "price-earnings ratio and current ratio.", "C": "working capital and return on equity.", "D": "working capital and current ratio."}, "num_choices": 4}
{"id": "en-task1-final-hidden-095", "question": "Kwela has heard that Morningstar’s ESG rating is a widely recognized measure of a company’s ESG performance, and she is interested in using it as a benchmark for the company’s own ESG efforts. What methodology does the Morningstar ESG rating employ?", "options": {"A": "Holding-based approach", "B": "Sector-based approach", "C": "Relative value approach"}, "num_choices": 3}
{"id": "en-task1-final-hidden-096", "question": "The Net Investment Income Tax may apply to which of the following?", "options": {"A": "Alimony", "B": "Traditional IRA distribution", "C": "Taxable mutual fund distribution", "D": "Tax exempt municipal bond interest"}, "num_choices": 4}
{"id": "en-task1-final-hidden-097", "question": "Taxpayers must report all income that they receive as Direct Sellers on which Form or Schedule?", "options": {"A": "Schedule E", "B": "Schedule 1, line 21", "C": "Form 1040, line 1", "D": "Schedule C"}, "num_choices": 4}
{"id": "en-task1-final-hidden-098", "question": "When properly developed and administered, budgets provide the following advantages to the organization except to:", "options": {"A": "provide a structure for measuring performance.", "B": "motivate managers and other employees.", "C": "ensure that the organization makes a profit.", "D": "promote the efficient allocation of resources."}, "num_choices": 4}
{"id": "en-task1-final-hidden-099", "question": "TCG, a listed company, issued debt finance to finance its expansion in the form of a floating rate bond. The face value of the bond is $ 650 m redeemable in five years with interest linked to LIBOR. TCG wishes to protect itself against adverse movements in interest rates by taking an interest rate swap with the current spot rates as per the table below. Term (years) Spot rate 1 5.25% 2 6.10% 3 6.95% 4 7.25% What fixed interest rate should TCG agree to?", "options": {"A": "6.25%", "B": "7.16%", "C": "6.40%", "D": "7.25%", "E": "6.60%"}, "num_choices": 5}
{"id": "en-task1-final-hidden-100", "question": "The taxpayer has a child under the age of 24 who is a full-time student in their second year of college. The student will be claimed as a dependent on the taxpayer's return. The student's educational expenses included $8,000 for tuition and $4,000 for room and board. The student received a $5,000 scholarship for tuition use only, as well as an additional $2,500 scholarship to pay any of the student's college expenses. The taxpayer paid the remaining $4,500. Which of the following statements is correct, based on the information above?", "options": {"A": "The student can claim the American Opportunity credit on the student's return for tuition expenses of $3,000 when the student reports the additional $2,500 scholarship as income", "B": "The taxpayer can claim the American Opportunity credit on the taxpayer's return for tuition expenses of $3,000 when the student reports the additional $2,500 scholarship as income", "C": "The taxpayer can claim the American Opportunity credit on the taxpayer's return for tuition expenses of $3,000, and neither the taxpayer nor the student should report any of the additional $2,500 scholarship as income", "D": "The taxpayer can claim the American Opportunity credit on the taxpayer's return for tuition expenses of $3,000 when the taxpayer reports the additional $2,500 scholarship as income"}, "num_choices": 4}
{"id": "en-task1-final-hidden-101", "question": "An organization may qualify as an organization described under Section 501(c)(3) if it is organized and operated exclusively for which of the following purposes?", "options": {"A": "Charitable", "B": "Business", "C": "Political action", "D": "Personal"}, "num_choices": 4}
{"id": "en-task1-final-hidden-102", "question": "An enrolled agent (EA) may represent a taxpayer:", "options": {"A": "At conferences or meetings with the IRS Examination Division", "B": "Only if the EA prepared the return under examination", "C": "At all tax-related federal court proceedings", "D": "Before the Taxpayer Advocate Service and the Tax Court"}, "num_choices": 4}
{"id": "en-task1-final-hidden-103", "question": "For the IRS to grant a guaranteed installment agreement, a taxpayer must have not failed to file any income tax returns or pay any tax shown on such returns during any of the preceding:", "options": {"A": "3 taxable years", "B": "5 taxable years", "C": "6 taxable years", "D": "10 taxable years"}, "num_choices": 4}
{"id": "en-task1-final-hidden-104", "question": "An investor has invested $10 million in a bond issued by Groningen Bank, based in Dortmund, Germany. He is acutely aware of the possibility of the bank defaulting and thus purchases a credit default swap from Bundesliga Bank, based in Munich, Germany. If the default probability of TVR and the default correlation between Groningen Bank and Bundesliga Bank increased, which of the following scenarios would play out?", "options": {"A": "The value of the CDS will increase, and the investor has wrong-way risk with Bundesliga Bank", "B": "The value of the CDS will decrease, and the investor has wrong-way risk with Bundesliga Bank", "C": "The value of the CDS will increase, and the investor has right-way risk with Bundesliga Bank", "D": "The value of the CDS will decrease, and the investor has right-way risk with Bundesliga Bank"}, "num_choices": 4}
{"id": "en-task1-final-hidden-105", "question": "A company's master budget for the year planned for the manufacture and sale of 5,600 toys for ¥750,000 in revenue, ¥400,000 in variable expenses, and ¥255,000 in fixed expenses. By the end of the year, the company had manufactured and sold only 4,500 toys for ¥650,000 in revenue, ¥375,000 in variables expenses, and ¥195,000 in fixed expenses. What is the operating income variance for the company for the year?", "options": {"A": "¥15,000 unfavorable", "B": "¥25,000 favorable.", "C": "¥75,000 unfavorable.", "D": "¥100,000 unfavorable."}, "num_choices": 4}
{"id": "en-task1-final-hidden-106", "question": "Giando works as a junior portfolio manager at Belroy Family Office. The family office manages approximately $1.5 billion in assets. In preparation for the annual performance review, the senior PM Roy asks Giando to prepare the firm’s approach to stewardship and engagement. While presenting his work to Roy, Giando and Roy note that their views differ on what active ownership entails. Giando believes that Belroy, as a signatory to the PRI, is required to act as an active owner and thus engage with companies. This includes voting and engagement. Roy, on the other hand, believes that voting is sufficient, as this already counts as active ownership. Who is most likely correct?", "options": {"A": "Roy is correct", "B": "Giando is correct", "C": "The PRI princinples do not require engagement in any form"}, "num_choices": 3}
{"id": "en-task1-final-hidden-107", "question": "Which of the following statements is true regarding rejected electronic filed returns?", "options": {"A": "The ERO must notify the taxpayer within 48 hours if they can’t fix the reason for the rejection", "B": "The ERO only needs to provide the taxpayer an explanation of the rejection", "C": "To timely file the return, the taxpayer must file the paper return by the later of the due date of the return or ten calendar days after the notification of rejection", "D": "Taxpayers do not need to include any explanation with the paper return, as to why it is being filed after the due date"}, "num_choices": 4}
{"id": "en-task1-final-hidden-108", "question": "If a corporation makes a below-market loan to a shareholder, the corporation generally is deemed to make a payment to the shareholder for federal tax purposes. This deemed payment is treated as a(n):", "options": {"A": "Gift", "B": "Dividend", "C": "Honorarium", "D": "Payment of compensation"}, "num_choices": 4}
{"id": "en-task1-final-hidden-109", "question": "What is the tax consequence of a taxpayer receiving the wages that were due to a decedent at the time of their death?", "options": {"A": "There is no tax consequence. Inheritances are not taxable", "B": "The income is considered a long-term capital gain because it was inherited", "C": "The income is considered ordinary income just as it would have been considered for the decedent", "D": "The income is considered a short-term capital gain if it is paid out within one year of the decedent's death"}, "num_choices": 4}
{"id": "en-task1-final-hidden-110", "question": "What is the primary difference between data management and data governance?", "options": {"A": "Data management handles technical aspects, whereas data governance sets policies.", "B": "Data management involves data storage, whereas data governance deals with usage.", "C": "Data management markets data, whereas data governance manages costs.", "D": "Data management creates data, whereas data governance handles deletion."}, "num_choices": 4}
{"id": "en-task1-final-hidden-111", "question": "The relevant range refers to the activity levels over which:", "options": {"A": "cost relationships hold constant.", "B": "costs fluctuate.", "C": "production varies.", "D": "relevant costs are incurred."}, "num_choices": 4}
{"id": "en-task1-final-hidden-112", "question": "A year into SCG’s investment in Yummy bars, SCG sold $7.5m of inventory to Yummy Bars for $12m. Yummy resold $8m of this inventory during the year. What was SCG’s share of the unrealized profit?", "options": {"A": "$4.5m", "B": "$1.4985m", "C": "$0.44955m"}, "num_choices": 3}
{"id": "en-task1-final-hidden-113", "question": "Which one of the following describes what an organization wants to accomplish and leads to the formulation of long‐term business objectives?", "options": {"A": "Values", "B": "Strategy", "C": "Competency", "D": "Mission statement"}, "num_choices": 4}
{"id": "en-task1-final-hidden-114", "question": "If a company has a current ratio of 2.1 and pays off a portion of its accounts payable with cash, the current ratio will", "options": {"A": "decrease.", "B": "increase.", "C": "remain unchanged.", "D": "move closer to the quick ratio."}, "num_choices": 4}
{"id": "en-task1-final-hidden-115", "question": "Of the following pairs of variances found in a flexible budget report, which pair is most likely to be related?", "options": {"A": "Material price variance and variable overhead efficiency variance.", "B": "Labor rate variance and variable overhead efficiency variance.", "C": "Material usage variance and labor efficiency variance.", "D": "Labor efficiency variance and fixed overhead volume variance."}, "num_choices": 4}
{"id": "en-task1-final-hidden-116", "question": "Which of the following is most accurate about the rebalancing strategy that Coss is using for his own portfolio?", "options": {"A": "Each asset class will have a different probability of triggering rebalancing if the normal distribution describes the asset class returns.", "B": "The rebalancing strategy does not account for differences in transaction costs or asset correlations.", "C": "Such a strategy requires less frequent rebalancing when the market is trending and more frequent rebalancing when the market is characterized by reversals."}, "num_choices": 3}
{"id": "en-task1-final-hidden-117", "question": "Under Treasury Department Circular No. 230, which of the following is incompetence or disreputable conduct?", "options": {"A": "Conviction of any misdemeanor offense under Federal, State, or local law", "B": "Conviction of any criminal offense involving dishonesty or breach of trust", "C": "Willfully disclosing a taxpayer’s tax return information with the consent of the taxpayer", "D": "Due to reasonable cause, forgetting to sign a tax return prepared by the practitioner when the practitioner’s signature is required by Federal tax laws"}, "num_choices": 4}
{"id": "en-task1-final-hidden-118", "question": "The implicit transaction cost of the trade in Star Energy Inc., using the VWAP as the price benchmark, is closest to:", "options": {"A": "$212.39", "B": "$230.95", "C": "$272.43"}, "num_choices": 3}
{"id": "en-task1-final-hidden-119", "question": "The financial statement that provides a summary of a firm’s operations for a period of time is the", "options": {"A": "income statement.", "B": "statement of financial position.", "C": "statement of shareholders’ equity.", "D": "statement of retained earnings."}, "num_choices": 4}
{"id": "en-task1-final-hidden-120", "question": "Which of the following is true regarding Income in Respect of a Decedent (IRD)?", "options": {"A": "The character of the IRD changes once the decedent passes away", "B": "IRD is income the decedent would have received had death not occurred and was properly included in the decedent’s final return", "C": "If an individual receives IRD and includes it on their return, they are not allowed a deduction for the estate tax attributable to the item of IRD as reported on Form 706", "D": "IRD must be included as income by either the decedent's estate, if the estate receives it, or the beneficiary, if the right to income is passed directly to the beneficiary and the beneficiary receives it, or any person to whom the estate properly distributes the right to receive it"}, "num_choices": 4}
{"id": "en-task1-final-hidden-121", "question": "A public company’s shareholders expect to receive a dividend one year from now of $20 per share. Immediately after the dividend payout, analysts are expecting that the stock will trade at $244 per share. If the investors have a required rate of return of 20%, what is the current value of the stock?", "options": {"A": "$220.", "B": "$224.", "C": "$244.", "D": "$264."}, "num_choices": 4}
{"id": "en-task1-final-hidden-122", "question": "An enrolled agent (EA) is in the process of representing a taxpayer before the Internal Revenue Service for a tax matter involving a tax return the taxpayer filed claiming married filing jointly with her former husband. The taxpayer's former husband also asked the EA to represent him for the same matter. Which of the following is true regarding the EA representing them both?", "options": {"A": "The EA must notify the Office of Professional Responsibility that the EA will be representing both taxpayers", "B": "Each taxpayer only needs to provide consent verbally, if the EA documents the day consent was given", "C": "The EA must reasonably believe that the EA will be able to provide competent and diligent representation to both taxpayers", "D": "Confirmation of a conflict of interest must be made within 60 days from the time of consent by both taxpayers"}, "num_choices": 4}
{"id": "en-task1-final-hidden-123", "question": "For a manufacturing firm, which of the following would be included in cash outflows from financing activities on the Statement of Cash Flows?", "options": {"A": "Payment of salaries and wages", "B": "Repayment of the principal portion of firm debt", "C": "Issuance of new stock", "D": "Interest payments on firm debt"}, "num_choices": 4}
{"id": "en-task1-final-hidden-124", "question": "Which of the following is correct regarding a personal casualty loss?", "options": {"A": "Loss of property due to progressive deterioration is not deductible", "B": "It is reduced by the amount of your standard deduction", "C": "It must be less than 10% of your adjusted gross income", "D": "It is deducted over a three-year consecutive period"}, "num_choices": 4}
{"id": "en-task1-final-hidden-125", "question": "Which one of the following items could be identified on the cash flow statement prepared using the indirect method?", "options": {"A": "The payment of interest expense of $200,000.", "B": "A change in unrealized holding gains of $50,000.", "C": "A settlement of a lawsuit that was previously accrued.", "D": "Depreciation related to buildings and equipment."}, "num_choices": 4}
{"id": "en-task1-final-hidden-126", "question": "Three years ago, James Company purchased stock in Zebra Inc. at a cost of $100,000. This stock was sold for $150,000 during\nthe current fiscal year. The result of this transaction should be shown in the Investing Activities Section of James’ Statement of\nCash Flows as", "options": {"A": "Zero.", "B": "$50,000.", "C": "$100,000.", "D": "$150,000."}, "num_choices": 4}
{"id": "en-task1-final-hidden-127", "question": "Violated support levels typically", "options": {"A": "lose importance almost immediately.", "B": "indicate an imminent price reversal.", "C": "lose importance after 55 bars.", "D": "become resistance."}, "num_choices": 4}
{"id": "en-task1-final-hidden-128", "question": "Which of the following is true regarding the premium tax credit (PTC)?", "options": {"A": "Married individuals are always required to file a joint return to qualify for the credit", "B": "The PTC can only be claimed if the individual was enrolled in a qualified health plan for at least six months.", "C": "Form 1095-A, Health Insurance Marketplace Statement, is not needed to complete Form 8962, Premium Tax Credit (PTC)", "D": "No PTC is allowed for an individual’s coverage for any period that an individual is not lawfully present in the United States"}, "num_choices": 4}
{"id": "en-task1-final-hidden-129", "question": "A company uses participative budgeting. In order to more easily meet budgetary goals, the controller underestimates the amount of revenue and overestimates fixed selling and administrative expenses. This is an example of", "options": {"A": "flexible budgeting.", "B": "budgetary slack.", "C": "zero‐based budgeting.", "D": "budgetary variance."}, "num_choices": 4}
{"id": "en-task1-final-hidden-130", "question": "A company produces two products that incur $50,000 of joint costs. At the split‐off point, 5,000 units of Product 1 and 15,000 units of Product 2 can be sold for $5 and $3 per unit, respectively. These products are processed further. Product 1 incurs $25,000 of separable costs and is then sold for $12 per unit, and Product 2's separable costs total $30,000 with a final selling price of $6 per unit. If the company uses the constant gross profit method to allocate joint costs, the dollar amount of joint costs allocated to Product 1 would be", "options": {"A": "$17,000.", "B": "$17,857", "C": "$18,421", "D": "$20,000"}, "num_choices": 4}
{"id": "en-task1-final-hidden-131", "question": "Nathalia works as a political attachée at the Russian Embassy. During a meeting, she hears the term “Just Transition” but has difficulty understanding it. She turns to her colleague Igor, who explains the term as a transition to a sustainable economy “just in time.” Not so convinced by his answer, she finds another definition in a forum. Which of the following is the most appropriate definition of a “Just Transition”?", "options": {"A": "A transition that is aligned with the Kyoto Agreement", "B": "A transition that shares the financial and social burden fairly", "C": "A transition that respects labor and human rights"}, "num_choices": 3}
{"id": "en-task1-final-hidden-132", "question": "A company that prides itself on its innovation revised an existing popular brand without conducting sufficient market research. By taking this action, the company exposed itself to what types of risk?", "options": {"A": "Credit risk and strategic risk.", "B": "Hazard risk and credit risk.", "C": "Operational risk and hazard risk.", "D": "Strategic risk and operational risk."}, "num_choices": 4}
{"id": "en-task1-final-hidden-133", "question": "Under the capitalization rules, amounts paid for which of the following activities is generally required to be capitalized?", "options": {"A": "Repair and maintenance that does not improve a unit of tangible property", "B": "A new heating system that costs $8,000 and IRC 179 is elected", "C": "Materially enlarging a unit of property", "D": "Replacing a minor component or structural part of a unit of property that does not extend its life"}, "num_choices": 4}
{"id": "en-task1-final-hidden-134", "question": "An example of an item that would fall under the customer perspective on the balanced scorecard of an airline is", "options": {"A": "customer complaints will decrease by 10%.", "B": "customers will have to wait no longer than 15 minutes to check their bags.", "C": "90% of the flights will arrive on time.", "D": "three new in‐flight meals will replace existing offerings that are unpopular with customers."}, "num_choices": 4}
{"id": "en-task1-final-hidden-135", "question": "Which of the following situations is reported on Form 1099 MISC:", "options": {"A": "Payment of non-employee compensation of $600 or more", "B": "Payments of rent of $400", "C": "Payments of $5 in royalty income", "D": "Payments made to a physician or other supplier or provider of medical or healthcare services of $600 or more made in your trade or business"}, "num_choices": 4}
{"id": "en-task1-final-hidden-136", "question": "By standardizing sustainability disclosures, the EU’s Sustainable Finance Action Plan has introduced new standards that enable institutional asset owners and retail clients to more easily assess the sustainability features of investment funds. Which EU regulation best fits the above?", "options": {"A": "Sustainable Disclosure Regulation (SDR)", "B": "European Sustainability Disclosure Regulation (ESDR)", "C": "Sustainable Finance Disclosure Regulation (SFDR)"}, "num_choices": 3}
{"id": "en-task1-final-hidden-137", "question": "NewBank is a new bank that will only a 3-year bullet loan with all the principal and interest paid at the end of the term. The bank wants to receive an effective per annum interest rate of 6.15% before addition of any risk premiums. If 1% of the borrowers are expected to default with the bank able to only recover 25% from these borrowers, estimate the default risk premium the bank needs to include in its pricing.", "options": {"A": "0.002", "B": "0.0065", "C": "0.009", "D": "0.0062", "E": "0.0027"}, "num_choices": 5}
{"id": "en-task1-final-hidden-138", "question": "Shortly after the Enron, Tyco, and WorldCom scandals in the USA, which led to the Sarbanes-Oxley Act in 2002, Europe faced two major scandals that led to a reassessment of the continent’s approach to governance. Name the two scandals:", "options": {"A": "Ahold and Parmalat", "B": "Vivendi Universal and BCCI", "C": "Wirecard and Ahold"}, "num_choices": 3}
{"id": "en-task1-final-hidden-139", "question": "When implementing a continuous enterprise risk management process, what step should an organization take first?", "options": {"A": "Control previously identified risks.", "B": "Establish a risk management budget.", "C": "Establish its strategy and objectives.", "D": "Monitor and communicate results."}, "num_choices": 4}
{"id": "en-task1-final-hidden-140", "question": "A manager is reviewing a potential investment that has significant uncertainty related to its ultimate financial outcome. The manager has estimated the following probabilities for the various levels of net cash flows that may result from the investment.\nWhat is the expected value of net cash flows that the manager should use in evaluating the investment?", "options": {"A": "$100,000", "B": "$200,000", "C": "$140,000", "D": "$400,000"}, "num_choices": 4}
{"id": "en-task1-final-hidden-141", "question": "The call provision in some bond indentures allows", "options": {"A": "the issuer to exercise an option to redeem the bonds.", "B": "the bondholder to exchange the bond, at no additional cost, for common shares.", "C": "the bondholder to redeem the bond early by paying a call premium.", "D": "the issuer to pay a premium in order to prevent bondholders from redeeming bonds."}, "num_choices": 4}
{"id": "en-task1-final-hidden-142", "question": "A taxpayer received a notice from the IRS stating a prior year’s tax return had been examined and that an adjustment was made increasing the amount of tax by $2,560. The taxpayer disagrees with the adjustment. Under which situation could the taxpayer request an audit reconsideration?", "options": {"A": "The full amount owed has already been paid", "B": "The taxpayer has not discovered any new documentation for IRS Exam to consider", "C": "The taxpayer did not appear for the examination or did not send information to the IRS", "D": "The taxpayer moved but received the examination notice"}, "num_choices": 4}
{"id": "en-task1-final-hidden-143", "question": "Which of the below is a correct statement regarding Form 8938, Statement of Specified Foreign Financial Assets?", "options": {"A": "Form 8938 is attached to your annual return and filed by the due date, including extensions", "B": "If an income tax return is not required to be filed for the tax year, you are still required to file Form 8938 when specified foreign financial assets is more than the appropriate reporting threshold", "C": "If you are required to file Form 8938, you must report the specified foreign financial assets in which you have an interest only if the assets affect your tax liability for the year", "D": "Filing Form 8938 relieves you of the requirement to file FinCEN Form 114, Report of Foreign Bank and Financial Accounts (FBAR) if you are otherwise required to file the FBAR"}, "num_choices": 4}
{"id": "en-task1-final-hidden-144", "question": "If Dexter Industries has a beta value of 1.0, then its", "options": {"A": "return should equal the risk-free rate.", "B": "price is relatively stable.", "C": "expected return should approximate the overall market.", "D": "volatility is low."}, "num_choices": 4}
{"id": "en-task1-final-hidden-145", "question": "Under a floating exchange rate system, which of the following should result in a depreciation of the Swiss franc?", "options": {"A": "U.S. inflation declines relative to the Swiss inflation.", "B": "U.S. income levels improve relative to the Swiss.", "C": "Swiss interest rate rises relative to the U.S. rates.", "D": "Decrease in outflows of Swiss capital to the U.S."}, "num_choices": 4}
{"id": "en-task1-final-hidden-146", "question": "A random sample of 50 FRM exam candidates was found to have an average I.Q. of 125. The standard deviation among candidates is known (approximately 20). Assuming that I.Q.s follow a normal distribution, carry out a statistical test (5% significance level) to determine whether the average I.Q. of FRM candidates is greater than 120. Compute the test statistic and give a conclusion.", "options": {"A": "Test statistic: 1.768; Reject \\(H_0\\)", "B": "Test statistic: 2.828; Reject \\(H_0\\)", "C": "Test statistic: 1.768; Fail to reject \\(H_0\\)", "D": "Test statistic: 1.0606; Fail to reject \\(H_0\\)"}, "num_choices": 4}
{"id": "en-task1-final-hidden-147", "question": "A company is setting up a new division to sell its products in Africa. An accountant has determined that the new African division will have to sell 250,000 units in order to cover the division's fixed costs of $365,000. The company is estimating total sales of $475,000 for the new African division. What is the contribution margin per unit for the new African division?", "options": {"A": "$0.44", "B": "$0.68", "C": "$1.46", "D": "$1.90"}, "num_choices": 4}
{"id": "en-task1-final-hidden-148", "question": "What should be the primary objective of data management within an organization?", "options": {"A": "The process of storing data in cloud-based servers.", "B": "The technological infrastructure that handles data.", "C": "The executive decisions regarding data monetization.", "D": "The oversight of data from creation to disposal."}, "num_choices": 4}
{"id": "en-task1-final-hidden-149", "question": "According to the work of Charles Dow and his successors, now referred to as Dow Theory, which of the following is NOT a hypothesis for the nature of markets and technical analysis?", "options": {"A": "The averages should confirm.", "B": "The averages discount everything.", "C": "There are three primary movements.", "D": "Prices move at random."}, "num_choices": 4}
{"id": "en-task1-final-hidden-150", "question": "You have a choice to take your retirement benefit either as a lump sum or as an annuity. You can take a lump sum of $4.5 million or an annuity with 15 payments of $400,000 a year with the first payment starting today. The interest rate is 7% per year compounded annually. Which option is preferable, on the basis that it has the greater present value?", "options": {"A": "Annuity payment.", "B": "Lump-sum payment.", "C": "There is no significant difference between the two options."}, "num_choices": 3}
{"id": "en-task1-final-hidden-151", "question": "If you have a dependent that you cannot claim for the child tax credit, the dependent may still qualify you for which $500 credit?", "options": {"A": "The Alternative Minimum Tax Credit", "B": "The State and Local Income Tax Credit", "C": "The Credit for Other Dependents", "D": "The Credit for Foreign Dependents"}, "num_choices": 4}
{"id": "en-task1-final-hidden-152", "question": "A company is in the process of evaluating a major product line expansion. Using a 14% discount rate, the firm has calculated the present value of both the project’s cash inflows and cash outflows to be $15.8 million. The company will likely evaluate this project further by", "options": {"A": "taking a closer look at the expansion’s contribution margin.", "B": "comparing the internal rate of return vs. the accounting rate of return.", "C": "comparing the internal rate of return vs. the company’s cost of capital.", "D": "comparing the internal rate of return vs. the company’s cost of capital and hurdle rate."}, "num_choices": 4}
{"id": "en-task1-final-hidden-153", "question": "Given losses at an insurance company have the following probability density function: $$ f\\left( x \\right) =\\begin{cases} { { x }^{ 2 }+{\\frac { 2 }{ 3 }}, } & 0<x<1 \\\\ 0, & otherwise \\end{cases} $$ Losses are subject to a deductible of .5. Calculate the expected payout under this policy.", "options": {"A": "0.17", "B": "0.23", "C": "0.34", "D": "0.46", "E": "0.52"}, "num_choices": 5}
{"id": "en-task1-final-hidden-154", "question": "If a company is an accrual basis taxpayer, what is the amount of gross receipts reported on the taxpayer’s Form 1040 Schedule C based on the information below? Service income $25,000 Gain on the sale of an asset $1,500 Interest on accounts receivable $3,000", "options": {"A": "$25,000", "B": "$26,500", "C": "$28,000", "D": "$29,500"}, "num_choices": 4}
{"id": "en-task1-final-hidden-155", "question": "You are thinking of getting a loan for your first house, but you find out that the interest is variable and it is usually on the interval (0.09,0.15). The smallest loan amount is 100,000 and after one year its interest value would be \\(V = 100,000e^R\\). Let F be the cumulative distribution of \\(V\\). Determine F(v) for values of v that satisfy 0 < F(v) < 1.", "options": {"A": "\\(\\frac{100000e^{v/10000}-109,150}{9,000}\\)", "B": "\\(11.11e^{v/100,000}-0.09\\)", "C": "\\(\\frac{11.11}{v}\\)", "D": "\\(11.11\\bigg[ln\\bigg(\\frac{v}{100,000}-0.09\\bigg)\\bigg]\\)", "E": "\\(\\frac{v}{11.11}\\)"}, "num_choices": 5}
{"id": "en-task1-final-hidden-156", "question": "60% of an insurer’s policyholders are male and 40% are female. The chance of a male having a claim is twice the chance of a female having a claim. Given a randomly selected policyholder has a claim, what’s the probability they are male?", "options": {"A": "25%", "B": "40%", "C": "50%", "D": "60%", "E": "75%"}, "num_choices": 5}
{"id": "en-task1-final-hidden-157", "question": "An investor is evaluating the common stock of a technology company that has a beta of 1.8. The expected return for the securities market as a whole is 8%. The investor could receive a risk-free return of 2% on a U.S. Treasury bill. Based on the capital asset pricing model (CAPM), what is the expected risk adjusted return of the technology company’s common stock?", "options": {"A": "10.8%.", "B": "12.8%.", "C": "16.4%.", "D": "20.0%."}, "num_choices": 4}
{"id": "en-task1-final-hidden-158", "question": "Davis Retail Inc. has current assets of $7,500,000 and a current ratio of 2.3 times before purchasing $750,000 of merchandise on credit for resale. After this purchase, the current ratio will", "options": {"A": "remain at 2.3 times.", "B": "be higher than 2.3 times.", "C": "be lower than 2.3 times.", "D": "be exactly 2.53 times."}, "num_choices": 4}
{"id": "en-task1-final-hidden-159", "question": "A 3-year bond offers a 7% coupon rate with interests paid annually. Assuming the following sequence of spot rates, the price of the bond is closest to : $$ \\begin{array}{c|c|c} \\textbf{Time to Maturity (Years)} & \\textbf{Spot Rate (%)} \\\\ \\hline \\text{1} & \\text{4} \\\\ \\text{2} & \\text{5} \\\\ \\text{3} & \\text{5.5} \\\\ \\end{array} $$", "options": {"A": "98.24", "B": "104.05", "C": "104.20"}, "num_choices": 3}
{"id": "en-task1-final-hidden-160", "question": "Gordon has had the following financial results for the last four years.\nYear 1 Year 2 Year 3 Year 4\nSales $1,250,000 $1,300,000 $1,359,000 $1,400,000\nCost of goods sold 750,000 785,000 825,000 850,000\nGross profit 500,000 515,000 534,000 550,000\nInflation factor 1.00 1.03 1.07 1.10\nGordon has analyzed these results using vertical common-size analysis to determine trends. The performance of\nGordon can best be characterized by which one of the following statements?", "options": {"A": "The common-size gross profit percentage has decreased as a result of an increasing common-size trend in cost of goods sold.", "B": "The common-size trend in sales is increasing and is resulting in an increasing trend in the common-size gross profit margin.", "C": "The common-size trend in cost of goods sold is decreasing which is resulting in an increasing trend in the common-size gross profit margin.", "D": "The increased trend in the common-size gross profit percentage is the result of both the increasing trend in sales and the decreasing trend in cost of goods sold."}, "num_choices": 4}
{"id": "en-task1-final-hidden-161", "question": "Joe Timberlake is a trader who trades equities in the United Arab Emirates (UAE). Timberlake is consistently able to earn abnormal profits by using fundamental data, but when he uses only technical analysis, he is not profitable. UAE’s market efficiency is most likely ?", "options": {"A": "Weak-form efficient.", "B": "Strong-form efficient.", "C": "Semi-strong form efficient."}, "num_choices": 3}
{"id": "en-task1-final-hidden-162", "question": "A new customer walks into a bank and requests to open a commercial account. In the process, the customer provides an address for the account located across the city from the branch. When asked by the account representative if he requires any additional banking services, the customer responds he is also interested in opening a personal stocks trading account. The customer goes further to reveal that he has never had a trading account before but asks a few questions about how such an account works. He asks how deposits can be made into his account if there are any additional identification documents required, and how to go about moving balances out of the account using wire transfers. He does not ask any questions regarding the fees associated with these transactions. Which of the following items would be considered suspicious? I. The customer appears unconcerned about the fees. II. The address given by the customer and the branch where he came to open the account are not close to each other. III. The customer asks multiple questions about the trading account but none about actual investing. IV. The customer wants to open both a commercial account and a stock trading account.", "options": {"A": "I, II, and IV", "B": "I, II, and III", "C": "II, III, and IV", "D": "I,II,III and IV"}, "num_choices": 4}
{"id": "en-task1-final-hidden-163", "question": "Block is least accurate with respect to:", "options": {"A": "Statement 1 only.", "B": "Statement 2 only.", "C": "neither Statement 1 nor Statement 2."}, "num_choices": 3}
{"id": "en-task1-final-hidden-164", "question": "A pizza restaurant recently experienced a decline in profit margin although sales have remained steady. An analysis of direct cost inputs revealed the following:\nWhich one of the following is the\nmost\nlikely cause of the decline in the profit margin?\nItems:\n- A favorable materials price variance\n- An unfavorable materials quantity variance\n- A favorable labor rate variance\n- An unfavorable labor efficiency variance", "options": {"A": "The cheese supplier has raised prices.", "B": "New employees are still learning the recipes.", "C": "The employees are being paid more than the budgeted standard rates.", "D": "The employees are working fewer hours than budgeted standard hours."}, "num_choices": 4}
{"id": "en-task1-final-hidden-165", "question": "Which of the following would be included in gross income on a federal income tax return?", "options": {"A": "A gift of stock from a parent to a child", "B": "Alimony from a divorce decree executed in 2023", "C": "Life insurance proceeds received by a child after the death of a parent", "D": "A painting received from a client in exchange for legal services"}, "num_choices": 4}
{"id": "en-task1-final-hidden-166", "question": "The management of a company has just completed a thorough review of its strategic goals and formulated the company’s long-term plan and short-term objectives. The most appropriate next step for the company is the development of a", "options": {"A": "financial budget.", "B": "operating budget.", "C": "capital budget.", "D": "master budget."}, "num_choices": 4}
{"id": "en-task1-final-hidden-167", "question": "Which type of stop captures an increasing part of the profits as price moves in a favorable direction?", "options": {"A": "Initial stop", "B": "T railing stop", "C": "Sell stop", "D": "Standard deviation stop"}, "num_choices": 4}
{"id": "en-task1-final-hidden-168", "question": "Assume that today ( t = 0) the current US five-year Treasury note trades at a price equal to the bond’s face value of USD50,000,000. The security buyer takes delivery of the US Treasury note today and pays the security seller USD50,000,000. Assume a repo term of 45 days (and 360 days in a year) and a repo rate of 0.375%. If the buyer agrees to return the five-year Treasury note 45 days from today ( t = T ) to the seller, the repurchase price is closest to:", "options": {"A": "USD50,015,625", "B": "USD50,023,438", "C": "USD50,187,500"}, "num_choices": 3}
{"id": "en-task1-final-hidden-169", "question": "An enrolled agent's (EA's) client is an individual taxpayer who is requesting assistance with a proposed penalty. Which of the following is a method of contesting the penalty?", "options": {"A": "Prior to a penalty’s assessment and before any request for relief has been denied, or a 30-day letter has been issued, the EA can request a conference with the IRS Independent Office of Appeals", "B": "Prior to a penalty’s assessment, the EA can request binding arbitration to reconsider the penalty", "C": "Before the penalty has been assessed, the EA can submit a written request for penalty abatement", "D": "After the penalty has been assessed and paid, the EA can file a claim for refund with the IRS"}, "num_choices": 4}
{"id": "en-task1-final-hidden-170", "question": "Due to punitive international sanctions against country X over the use of banned weaponry, a company based in country X is facing the risk of an imminent rating downgrade. The following table gives the updated default probabilities for an A-rated issue by the company: $$ \\begin{array}{ll} \\textbf{ Year } & \\textbf { Default probability } \\\\ 1 & 0.400 \\% \\\\ 2 & 0.500 \\% \\\\ 3 & 0.600 \\% \\end{array} $$ Assuming that defaults can only occur at the end of the year, calculate the cumulative default rate at the end of each of the next three years.", "options": {"A": "4%, 0.750%, 1.235%", "B": "4%, 0.898%, 1.000%", "C": "4%, 0.750%, 0.980%", "D": "4%,0.898%,1.493%"}, "num_choices": 4}
{"id": "en-task1-final-hidden-171", "question": "Which one of the following items would most likely cause the planning and budgeting system to fail? The lack of", "options": {"A": "historical financial data.", "B": "input from several levels of management.", "C": "top management support.", "D": "adherence to rigid budgets during the year"}, "num_choices": 4}
{"id": "en-task1-final-hidden-172", "question": "What would be the implied volatility for a one day expected movement of 2%?", "options": {"A": "0.317%", "B": "5.04%", "C": "6.93%", "D": "31.7%"}, "num_choices": 4}
{"id": "en-task1-final-hidden-173", "question": "What is the total amount a sole proprietor is obligated to report on Form 1099-NEC based on the following expenses claimed on schedule C? Attorneys' fees to incorporated law firm: $600 Sign painter: $800 ($600 labor and $200 materials) Web page designer: $500 Incorporated janitorial company: $800 Consultant A: $1,000 ($400 paid in cash and $600 paid by check) Consultant B: $500 paid in cash Consultant C: $400 paid by check", "options": {"A": "$1,400", "B": "$1,600", "C": "$2,000", "D": "$2,400"}, "num_choices": 4}
{"id": "en-task1-final-hidden-174", "question": "An advantage of an enterprise resource planning system is that", "options": {"A": "it usually can be installed by organizations of all sizes.", "B": "the system can be customized easily to suit the unique needs of the organization.", "C": "the comprehensiveness of the system reduces resistance to change.", "D": "its implementation improves business processes."}, "num_choices": 4}
{"id": "en-task1-final-hidden-175", "question": "A rice farmer has decided to protect against possible price fluctuations at the time of harvest by purchasing some rice options. What type of risk response strategy has the rice farmer engaged in?", "options": {"A": "Avoidance.", "B": "Reduction.", "C": "Sharing.", "D": "Acceptance."}, "num_choices": 4}
{"id": "en-task1-final-hidden-176", "question": "A corporation makes a $100,000 term loan to a shareholder. The stated principal amount of the loan is payable in ten years. The test rate used to determine if the loan is a below-market loan is the:", "options": {"A": "Short-term applicable Federal rate as of the day the loan is made", "B": "Mid-term applicable Federal rate as of the day the loan is made", "C": "Long-term applicable Federal rate as of the day the loan is made", "D": "Adjusted applicable Federal rate as of the day the loan is made"}, "num_choices": 4}
{"id": "en-task1-final-hidden-177", "question": "James works in a large investment. Recently, a new fund manager joined the team. Through a friend, who also happens to be a former colleague of the newly hired manager, James finds out that the new fund manager was adversely mentioned in a case involving accounting fraud in his previous firm, but details of the incident were not available in the public domain. James’s firm has a robust recruitment process, and part of its policy entails detailed background checks on all prospective employees. James assumes that the firm’s recruitment team must have looked into the manager’s records, and thus he does not feel compelled to disclose this information to the head of recruitment. He is also wary of damaging his relationship with the new fund manager. Select the most appropriate statement:", "options": {"A": "James must not disclose this information as it is not publicly available.", "B": "James must disclose this information only if the new fund manager tries to commit fraud", "C": "James must not disclose this information as the fraud was committed at another firm", "D": "James must disclose this information to his team head"}, "num_choices": 4}
{"id": "en-task1-final-hidden-178", "question": "Which of the following includes income in respect of a decedent?", "options": {"A": "The final Form 1040 for the decedent", "B": "The decedent's estate, Form 706, if the decedent’s estate receives the right to the income", "C": "The Form 1040 of any person to whom the decedent’s estate properly distributes the income", "D": "The beneficiary’s Form 709, as a gift to the beneficiary"}, "num_choices": 4}
{"id": "en-task1-final-hidden-179", "question": "Coss is most accurate with respect to:", "options": {"A": "Statement 3 only.", "B": "Statement 4 only.", "C": "both statements 3 and 4."}, "num_choices": 3}
{"id": "en-task1-final-hidden-180", "question": "A company plans to add a new product that would affect its indirect labor costs in two ways. First, the production manager of an existing product would serve as manager of the new product. Her current assistant manager would be promoted and assume her previous position. Second, the existing maintenance staff would provide facility and machine maintenance that would require 30 hours of labor each month, but no increase in their total weekly hours worked. The company’s production managers earn $60,000 annually, assistant production managers are paid $50,000 each year, and maintenance employees earn $20 per hour. No additional hiring is planned. The annual relevant indirect labor costs for adding the new product would total", "options": {"A": "$67,200.", "B": "$60,600.", "C": "$10,000", "D": "$7,200"}, "num_choices": 4}
{"id": "en-task1-final-hidden-181", "question": "A multinational company maintains its financial records under both IFRS and U.S. GAAP. Last year, the company determined its inventory was impaired because demand for its product collapsed when a competitor launched a new product with innovative features. As a result, the company wrote down its inventory to $0 with a carrying amount of $500,000. This year, however, government authorities unexpectedly announced that the competitor's product was defective, and the product was removed from the market. As a result, the company's products were again in demand, and the company estimated its net realizable value to be $750,000 at the end of the current quarter. How should the company record this new development in the current quarter?", "options": {"A": "Under IFRS, $0 write‐up of the inventory; under U.S. GAAP, $0 write‐up of the inventory.", "B": "Under IFRS, $500,000 write‐up of the inventory; under U.S. GAAP, $0 write‐up of the inventory.", "C": "Under IFRS, $750,000 write‐up of the inventory; under U.S. GAAP, $0 write‐up of the inventory.", "D": "Under IFRS, $750,000 write‐up of the inventory; under U.S. GAAP, $750,000 write‐up of the inventory."}, "num_choices": 4}
{"id": "en-task1-final-hidden-182", "question": "Which of the following is correct regarding the accumulated earnings tax on a corporation?", "options": {"A": "If the tax applies, interest is calculated from the date the return was filed", "B": "The tax rate is 25%", "C": "Interest is calculated on the tax from the date the return was originally due, without extensions", "D": "Treat an accumulation of $250,000 or less as within the reasonable needs of a business whose principal function is performing services"}, "num_choices": 4}
{"id": "en-task1-final-hidden-183", "question": "Cancellation of Debt (COD) income for an S Corporation:", "options": {"A": "Flows to shareholder if income is excluded by the S corporation", "B": "Is recognized as income to an S Corporation regardless of the extent of corporate insolvency", "C": "Is not excluded from gross income to the S Corporation when granted in Chapter 11 reorganizations", "D": "Gives rise to income which flows to shareholders if the income is not excluded by the S Corporation"}, "num_choices": 4}
{"id": "en-task1-final-hidden-184", "question": "A company is the leading company in the premium bottled water industry. Its growth is driven mainly by the negative health publicity on carbonated soft drinks and other sweetened beverages. Extensive inventory and distribution infrastructure is needed to compete in this industry. The company's main packaging materials can be sourced either locally or easily imported from overseas. With its 60% market share, the company is able to influence prices and competitive activity. The second biggest competitor holds 20% market share, while the remaining 20% is shared by many small companies. Supermarkets and other grocery retailers are the largest customer segment, accounting for approximately 45% of sales. The supermarkets and grocery retailers are driving volume growth and are undergoing consolidation into larger supermarket conglomerates. Using Porter's 5 Forces, which one of the following statements\nbest\nreflects the industry environment?", "options": {"A": "Low profitability but can increase due to increasing power of buyers", "B": "Low profitability due to low threat of substitutes and new entrants", "C": "High profitability but can decrease due to increasing power of buyers", "D": "High profitability due to high power of buyers and sellers"}, "num_choices": 4}
{"id": "en-task1-final-hidden-185", "question": "What is the maximum number of shareholders a corporation may have to be eligible to elect to be treated as an S corporation?", "options": {"A": "25", "B": "50", "C": "75", "D": "100"}, "num_choices": 4}
{"id": "en-task1-final-hidden-186", "question": "All of the following are included when calculating the acid test ratio except", "options": {"A": "six-month Treasury bills.", "B": "prepaid insurance.", "C": "accounts receivable.", "D": "60-day certificates of deposit."}, "num_choices": 4}
{"id": "en-task1-final-hidden-187", "question": "If the demand for a good is elastic, then a(n)", "options": {"A": "decrease in price will increase total revenue.", "B": "increase in price will increase total revenue.", "C": "decrease in price will decrease total revenue.", "D": "increase in price will have no effect on total revenue."}, "num_choices": 4}
{"id": "en-task1-final-hidden-188", "question": "Maria works for an ESG consulting firm. Her client, a Norwegian pension fund, is interested in implementing ESG investing. At the kick-off meeting, Maria presents different ESG investment styles and believes that ethical investing might be the most appropriate style to achieve the client’s goals. However, her counterpart Niklas believes that ethical investing is not an accepted ESG investment style. He believes that thematic investing is probably the most appropriate ESG investment style. In your opinion, which form of ESG investing is least likely to be considered an appropriate ESG investment style? 1.1.3. There are different approaches to ESG investing: responsible investment; socially responsible investment (SRI); sustainable investment; best-in class investment; ethical/values-driven investment; thematic investment; impact investment; green investment; social investment; shareholder engagement.", "options": {"A": "Dirk is correct – Thematic Investing is considered to be an ESG investment style", "B": "Maria is correct – Ethical Investing is considered to be an ESG investment style", "C": "Both are correct – Thematic and Ethical Investing are considered be an ESG investment style"}, "num_choices": 3}
{"id": "en-task1-final-hidden-189", "question": "At 1 July 2007, a company has a liability of &dollar;20,000 which must be paid on 1 Jan 2011 and a liability of &dollar;18,000 to be paid on 1 July 2013. Currently, the company holds assets whose present value is equal to that of the liabilities. The company wishes to immunize its position by investing in two zero coupon bonds \\(X\\) and \\(Y\\), whose terms are 4 and 7 years respectively at an effective rate of interest of 10%. Calculate \\(X+Y\\).", "options": {"A": "24,562", "B": "25,369", "C": "24,488", "D": "23,564", "E": "28,754"}, "num_choices": 5}
{"id": "en-task1-final-hidden-190", "question": "A company uses the IFRS lower‐of‐cost‐or‐market (LCM) rule to value its inventory of frozen foods. The company applies this LCM method on a total inventory basis, not directly to each item of frozen food. Information on the frozen food inventory at December 31 of the year just ended is provided below.\nUsing this LCM approach, the company should value its inventory at", "options": {"A": "$80,000.", "B": "$85,000.", "C": "$90,000.", "D": "$100,000."}, "num_choices": 4}
{"id": "en-task1-final-hidden-191", "question": "When advertising their services, an enrolled agent may use which one of the following phrases to describe their professional designation?", "options": {"A": "Certified to practice before the Internal Revenue Service", "B": "Admitted to practice before the Internal Revenue Service", "C": "Enrolled as a representative of the Internal Revenue Service", "D": "Licensed to practice before the Internal Revenue Service"}, "num_choices": 4}
{"id": "en-task1-final-hidden-192", "question": "A publicly traded company has 100,000 outstanding shares of common stock, with a par value of $5. The company uses U.S. GAAP to prepare its financial statements. The company recently declared a 5% stock dividend. On the date the stock dividend was declared, the company's stock was trading at $25 per share. On the date of declaration, the company's", "options": {"A": "additional paid‐in capital will increase.", "B": "retained earnings will increase.", "C": "total shareholders' equity will decrease.", "D": "outstanding shares will decrease."}, "num_choices": 4}
{"id": "en-task1-final-hidden-193", "question": "If a taxpayer and the IRS fail to settle a non-docketed examination controversy in the IRS Independent Office of Appeals, the next event to occur is:", "options": {"A": "Issuance of a notice of deficiency", "B": "Issuance of notice and demand for payment", "C": "Referral of the case to the Taxpayer Advocate Service", "D": "Return of the case to the assigned Revenue Agent for further review"}, "num_choices": 4}
{"id": "en-task1-final-hidden-194", "question": "Which of the following tasks may be performed by an enrolled agent on behalf of his or her client?", "options": {"A": "Prepare and file a suit for refund in United States District Court", "B": "Prepare and sign a United States Tax Court petition to contest a notice of deficiency", "C": "Prepare and sign a protest to challenge examination results in the IRS Independent Office of Appeals", "D": "Prepare and file a bankruptcy petition in United States Bankruptcy Court due to unpaid tax balances"}, "num_choices": 4}
{"id": "en-task1-final-hidden-195", "question": "An S corporation stockholder’s basis is generally increased by:", "options": {"A": "Distributions", "B": "Taxable income", "C": "Separately stated loss items", "D": "Nontaxable discharge of indebtedness"}, "num_choices": 4}
{"id": "en-task1-final-hidden-196", "question": "Greenwashing is the practice of falsely claiming a financial product to be more sustainable than it really is, and hence misleading clients. For instance, an asset management firm may call a fund “Renewable Climate Fund”, but then allocate assets to heavy carbon-emitting oil production companies. What could happen to the investment management industry if cases of greenwashing increase?", "options": {"A": "Since asset managers will have good explanations for why they hold those stocks, the AUM of ESG funds is likely going to increase", "B": "The investment management industry will take a hit on its credibility and unfairly punish pure ESG funds which may be painted with a broad brush", "C": "Regulators will likely deem the rules and regulations around the marketing of ESG products as too strict and reduce the number of regulations around marketing practices"}, "num_choices": 3}
{"id": "en-task1-final-hidden-197", "question": "Dave receives payment every year. The first payment is $10,000 now. In the subsequent years, the payment decreases by 6%. He will receive 10 payments in total. Assume an annual e?ective interest rate of 6%. What is the present value of the payments?", "options": {"A": "61,766.21", "B": "79,380.29", "C": "129,380.49", "D": "249,380.29", "E": "259,380.29"}, "num_choices": 5}
{"id": "en-task1-final-hidden-198", "question": "Company X has sold goods to its wholly owned subsidiary Company Y. How should the intracompany transactions be treated when preparing consolidated financial statements under U.S. GAAP?", "options": {"A": "Reported in the notes of the financial statements.", "B": "Highlighted as contingent liabilities.", "C": "Eliminated to avoid double counting.", "D": "Consolidated using the equity method."}, "num_choices": 4}
{"id": "en-task1-final-hidden-199", "question": "Both the Kyoto Protocol (2005) and the Paris Agreement (2015) were key milestones in global action to combat climate change. What is the major difference between the two?", "options": {"A": "Kyoto included emerging markets only, while Paris also included developed nations.", "B": "Kyoto aimed to set targets, but no formal commitments were achieved. In Paris, a global standard was set.", "C": "Kyoto included developed nations only, while Paris was a global response."}, "num_choices": 3}
{"id": "en-task1-final-hidden-200", "question": "On the table below are bid-ask quotes by ABC for CDS spreads for companies X, Y, and Z. CFC has excessive credit exposure to company Z. Analysts at CFC are looking to reduce this exposure by leveraging the CDS market. $$ \\begin{array}{c|c|c|c} & \\textbf { 1 year } & \\textbf { 3 years } & \\textbf { 5 years } \\\\ \\hline \\mathrm{X} & \\frac{10}{15} & \\frac{22}{33} & \\frac{28}{34} \\\\ \\hline \\mathrm{Y} & \\frac{42}{55} & \\frac{70}{99} & \\frac{110}{133} \\\\ \\hline \\mathrm{Z} & \\frac{68}{85} & \\frac{92}{112} & \\frac{138}{165} \\end{array} $$ Because the farthest maturity of its exposure to Z is three years, CFC decides to buy a CAD 400 million three-year protection on Z from ABC. In a bid to make the purchase of this protection cheaper, based on professional judgment on X and Y, CFC decides to sell CAD 600 million five-year protection on X and to sell CAD 200 million one-year protection on Y to ABC. Determine the net annual premium payment made by CFC to ABC in the first year.", "options": {"A": "CAD 0.54 million", "B": "CAD 1.96 million", "C": "CAD 1.5 million", "D": "CAD 0.5 million"}, "num_choices": 4}