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Level I

Perpetual vs Periodic

Everywhere I look, it seems Perpetual vs Periodic only applies to inventory. But I can’t help but wonder whether other areas of accounting are affected by the choice of periodic vs perpetual accounting systems?

Starting mock exams

Where should my mock exam scores be coming in at? I just took my first mock, V1 AM session of KS and scored a 67.5

"His" Ethics question

Jamie Pyles, a portfolio management trainee for a money management firm, is trying to create a client base. He phones prospective clients, telling them that he is a portfolio manager. He informs prospective clients that based on the last five years of performance of his firm, he can guarantee the client at least a 75% return. He informs them that his firm can provide all of the services that they will ever need. What is the minimum number of misrepresentations Jamie has made to the prospective clients in violation of Standard I(C), Misrepresentation?

A) 5

B) 3

What does it mean to "capitalize expenses"?

Q. A company previously expensed the incremental costs of obtaining a contract. All else being equal, adopting the May 2014 IASB and FASB converged accounting standards on revenue recognition makes the company’s profitability initially appear:

A. lower.

B. unchanged.

C. higher.

5 questions

  1. If soft hurdle rate>realized r incentive fee is not charged? Is it the same case as with hard hurdle rate?
  2. There was a question that it was unclear whether the incentive fee is net or independent of management fee. If such appears on the exam, how should I count?
  3. Are relative value strategies bottom up strategies?
  4. If there is no evaluate or calculate order in LOS but the practice questions include calculation tasks from this LOS, do I need to be able to count them?

null hypothesis vs alternative hypothesis

Q: A bottler of iced tea wishes to ensure that an average of 16 ounces of tea is in each bottle. In order to analyze the accuracy of the bottling process, a random sample of 150 bottles is taken. Using a t-distributed test statistic of -1.09 and a 5% level of significance, the bottler should:

A: Hoµ = 16; Haµ ≠ 16. Do not reject the null since |t| = 1.09 < 1.96 (critical value).

Why is the null hypothesis Hoµ = 16?  Shouldn’t it be the other way around (µ ≠ 16)?


I swear Im an ethical guy but Im having some trouble with ethics. Often times I will come across questions that IMO violate two or more standards and the answers will offer choices as such, but the correct answer violates one standard only for example. What is the trick to acing this section as it is so important to passing based on its weighting? Should I simply memorize (understand) each individual standard and be able to recite the Code?