Mixed Deck — All CFA Topics Flashcards

A company's bad debt expense is unusually low compared to industry peers despite a deteriorating economy. This may indicate:

Answer: Understated receivables or concealed write-offs to inflate earnings

Abnormally low bad debt expense during economic downturns may signal that management is underreporting uncollectible accounts to inflate net income.

During initial assessment of a potential recruit, which factor is MOST critical to evaluate?

Answer: The candidate's access to targeted information and susceptibility to recruitment

Access to targeted information and susceptibility to recruitment are the two foundational criteria that determine whether pursuing a candidate is operationally worthwhile.

During a fraud investigation, an examiner prepares an interim status memo for the audit committee. Which of the following should be EXCLUDED from that memo?

Answer: Speculation about the ultimate monetary loss before analysis is complete

Speculative loss figures in interim memos can mislead decision-makers and may be used out of context if litigation follows; only confirmed findings should be reported.

Which hazard control method is considered MOST effective in the hierarchy of controls?

Answer: Elimination of the hazard

Elimination removes the hazard entirely and is the most effective control because it leaves no residual risk from that source.

A visiting contractor's worker is walking through a forklift aisle without a high-visibility vest. What must the operator do?

Answer: Slow down, yield to the pedestrian, and notify a supervisor about the PPE violation

Operators must always yield to pedestrians regardless of PPE status, and the PPE violation should be reported to a supervisor to prevent future risk.

Which economic concept explains why some countries specialize in producing certain goods even if they are absolutely less efficient than their trading partners?

Answer: Comparative advantage

Comparative advantage shows that countries benefit from specializing in goods where they have the lowest opportunity cost, even if a trading partner is better at producing everything.

The ACFE defines corruption as occurring when an employee:

Answer: Uses their influence in a business transaction to violate their duty to their employer for direct or indirect personal gain

Corruption involves an employee misusing their positional influence in business transactions to gain personal benefit, breaching the duty owed to their employer.

The blood supply to the femoral head is primarily provided by branches of the:

Answer: Medial femoral circumflex artery

The medial femoral circumflex artery supplies the majority of blood to the femoral head; its disruption in femoral neck fractures causes avascular necrosis.

Which padding device is most effective for protecting heels and preventing pressure injuries during prolonged supine positioning?

Answer: Gel heel protectors

Gel heel protectors conform to the heel's contours and distribute pressure away from bony prominences, reducing pressure injury risk during lengthy procedures.

What is the primary purpose of a figure-of-eight suture in hemostasis?

Answer: To ligate and compress a deeper bleeding point beneath the suture

A figure-of-eight suture encircles and compresses a deep bleeding point, achieving hemostasis without the need for a separate tie.

When a CFE provides expert witness testimony, their primary duty is owed to:

Answer: The court and the truth

Expert witnesses, including CFEs, owe their paramount duty to the court — they must provide honest, objective opinions regardless of which side retained them.

During a vehicle stop in a potentially hostile location, the field agent should immediately:

Answer: Lock doors, assess the threat, remain in the vehicle if safe, and prepare for rapid departure

Remaining inside the locked vehicle maintains a protective barrier while the agent assesses the threat and prepares for rapid departure if needed.

During wood stock restoration, an appraiser discovers a hidden cartouche stamped under a previous refinish. The ethical obligation is to:

Answer: Preserve the cartouche, document it thoroughly, and inform the client of its historical significance

Hidden historical markings are significant provenance evidence and must be preserved and disclosed.

What is the PRIMARY purpose of continuing education requirements in Quantitative Methods & Statistics for CFA professionals?

Answer: Maintaining current knowledge and competency as the field evolves

Continuing education in Quantitative Methods & Statistics ensures professionals maintain current knowledge and skills as standards, technologies, and best practices evolve in the Certified Financial Analyst field.

Which application method best minimizes ammonia volatilization losses when applying urea-based fertilizer to established pasture?

Answer: Injection or knifing below the soil surface

Subsurface injection or knife application places urea below the soil surface where moisture and soil contact reduce ammonia volatilization.

Put-call parity states that for European options, the relationship is:

Answer: Call price + Strike price (PV) = Put price + Current stock price

Put-call parity: C + PV(X) = P + S, where C = call price, PV(X) = present value of strike, P = put price, S = current stock price.

After winning a lot at a live auction, within what timeframe are buyers typically required to complete payment?

Answer: As specified in the auction house's terms of sale, often within 24–48 hours after the auction ends

Payment deadlines are set by each auction house's terms and are usually 24–48 hours, though some houses allow up to a week for wire transfers.

How does case management support legal compliance?

Answer: It ensures that all records are legally sound and traceable.

Case management is fundamental to legal compliance because it establishes a structured system for documenting every aspect of an investigation. By ensuring that all records are meticulously kept, accurate, and traceable, it provides a robust foundation for legal proceedings. This adherence to proper documentation helps meet regulatory requirements and withstands scrutiny in court.

Which of the following is a fundamental principle of bank secrecy act & sar filing as it applies to Certified Fraud Analyst?

Answer: Systematic evaluation and adherence to established industry standards

A fundamental principle of bank secrecy act & sar filing in Certified Fraud Analyst is the systematic evaluation and adherence to established industry standards, which ensures consistency, quality, and regulatory compliance across all professional activities.

What is the purpose of a transmission inching pedal (or inching valve) on a forklift?

Answer: To allow the operator to control travel speed independently of engine RPM for precise positioning

The inching pedal partially disengages the transmission clutch, allowing the operator to raise engine RPM for lifting power while keeping travel speed slow for precise load placement.