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  1. Home
  2. CFA Certification
  3. CFA-Level-I Exam
  4. CFA.CFA-Level-I.v2022-03-26.q499 Dumps
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Question 341

Which of the following flow assumptions is not acceptable under generally accepted accounting principles?

Correct Answer: C
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Question 342

The less reliable a source, the ______ likely the information provided would be considered ______.

Correct Answer: B
The source or relative reliability of the information determines materiality. The less reliable a source, the less likely the information provided would be considered material.
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Question 343

In testing a hypothesis using a statistic Y, a critical region is chosen to meet which of the following conditions:
I). the probability of Y falling in the critical region when the null hypothesis is true is ALPHA
II). the probability of Y falling in the critical region when the alternative hypothesis is true is greater than it not falling in the critical region region.
III). the sample size is large

Correct Answer: B
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Question 344

Which of the following will unambiguously increase NAV of an open-end fund?

Correct Answer: A
Only an increase in asset value will unambiguously increase the net asset value of an open-end fund.
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Question 345

Two bonds issued by the same corporation have identical coupon rate, payment frequency, par value and time to maturity. The indenture of the first bond contains a call option, and the indenture of the second bond specifies a conversion privilege.

Correct Answer: B
Because the promised cash flows are identical, the value of the bonds would be the same except for the impact of the embedded options. The call option, because it is an option the bond issuer can exercise, reduces the value of the bond. The conversion option, because it is an option the bond owner can exercise, increases the value of the bond.
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