FRA Tier 2 Qualification Practice Test

These questions are part of the practice quiz. Start practicing

• Using borrowed money to finance investments is primarily associated with which term?
• What role does a financial analyst primarily play in a company?
• A 1 inch alignment measurement at the middle of a 62-foot chord equates to how many degrees of curvature?
• How are contingent liabilities defined?
• What strategic insight does due diligence provide before making an investment decision?
• What is the minimum required flangway width at turnouts and track crossings according to the FRA?
• How is financial leverage defined?
• What is the classification of the track allowed for freight speed with a rail joint having both tread and gage mismatch issues?
• What should be done if the actual elevation and degree of curvature change due to track degradation?
• What is an essential element of due diligence in investment decisions?
• What does "earnings per share" (EPS) measure?
• What is the relationship between fixed costs and business production levels?
• What is the significance of a trial balance in accounting?
• What is an example of a class specific defect?
• What is the required inspection frequency for main track class 3 that carries passengers according to the FRA?
• What is the definition of depreciation?
• What are audit trails?
• What is the slow speed order applied in the context of certain defects?
• What does the FRA require regarding unusually chipped or worn switch points?
• What is the main purpose of "regulatory compliance" in accounting?
• What are "financial derivatives" primarily used for?
• What is the maximum lateral movement allowable for the base of a rail on curves of 2 degrees or greater?
• When checking for track defects near joints, the focus is primarily on which components?
• Which of the following statements is included as a main financial statement?
• What should tax accounting ensure compliance with?
• What is the primary purpose of financial reporting?
• Which provision can a 213.7a qualified person operate under?
• How is superelevation measured?
• What does the matching principle in accounting require?
• What do revenue recognition principles dictate?
• What must a qualified person under 213.7a have demonstrated to their track owner?
• What is the maximum allowed speed for Class 3 track with a 3/16" tread mismatch?
• For a conventional jointed rail track rated at 45 MPH, what is the required remedial action if crosslevel measurements indicate defects?
• What is the purpose of conducting due diligence?
• What are accrued expenses?
• What is the primary purpose of auditing financial statements?
• Which tool would you use to measure superelevation?
• Which aspect is not affected by uncontrolled vegetation on railway tracks?
• What is the purpose of using the high rail for alignment measurements in a curve?
• Which of the following best describes the calculation of market capitalization?
• What is earnings before interest and taxes (EBIT)?
• In financial terms, what do overhead costs typically include?
• What is the maximum clearance allowed between the hold down housing and the horn of a spring frog?
• Why are accrued expenses important in accounting?
• When measuring track compliance, it must be measured as if it were __________?
• What is the maximum distance that one non-defective joint tie can be located from the rail end of a joint on Class 1 and 2 track?
• What is the maximum speed over a frog point that is chipped or worn according to FRA regulations?
• What does financial accounting generally involve?
• What does operating income represent?
• If a railroad encounters a non-class specific defect, what is required of the track inspector?
• What is the maximum freight speed allowed with a 1'3/16" misalignment in tangent track?
• What does the debt-to-equity ratio indicate?
• What is the purpose of financial forecasting?
• Using a 31-foot chord, a 1 inch alignment measurement indicates how many degrees of curvature?
• What type of defect is classified as speed defined?
• For how long can a railroad operate over non-compliant track under the authority of a 213.7a person?
• How many tie plates are required under running rails on wood ties in classes 3 - 5 track?
• If a track does not comply with FRA part 213 requirements, what is one option to bring it back into compliance?
• Which of the following is a requirement for the marking of defect rails according to BNSF?
• According to FRA regulations, what is advised if a non-class specific defect is found?
• What is defined as a "subsequent event" in accounting?
• What is the purpose of a capital budget?
• Why are budgets important in financial management?
• What restriction applies to non-certified rail installed in a main line required to be tested by a rail detector?
• Which of the following is an example of a current liability?
• The acceptable measurement for super elevation in a curve for Class 4 track should not exceed what value during inspection?
• How should rail anchors be applied at switches according to BNSF CWR policy?
• What is the required remedial action for a cracked or broken joint bar situated between the middle two bolt holes?
• When a frog point is broken out more than 5/8 inches down and 6 inches back, what is the maximum speed allowed over that frog?
• What visibility requirement does the FRA stipulate for a derail?
• How must a defective rail be marked in track according to the FRA?
• Which of the following is a reason for a concrete tie to be considered ineffective?
• For curves with lengths less than 155 feet, how are measurement points averaged?
• What does the term 'break-even point' refer to?
• What is the maximum freight speed allowed at rails where one joint is two inches low and another is one quarter inch low?
• What categorizes current assets?
• What three elements are required to determine proper elevation in a curve?
• What action should be taken when a non-class specific defect has been in over 30 days without being repaired?
• What is the primary focus of the income statement?
• What distinguishes fixed assets from current assets?
• What is the maximum speed allowed over a Class 4 frog with tread wear of 1/2 inch, according to FRA guidelines?
• What is the degree of curvature calculated from a series of 62-foot chord readings averaging 213.57?
• Which financial concept involves both risk and potential reward through borrowed funds?
• A 2 3/8 inch deep dip on the track is classified as which class of track?
• What is a characteristic of a comprehensive income statement compared to a regular income statement?
• What is the formula for calculating the current ratio?
• How many loose or missing frog bolts are considered a defect by the FRA?
• In conventional jointed track, how many bolts must be used for each rail at a joint in classes 2-5?
• What must be considered in addition to static geometry when measuring track compliance?
• What element of track maintenance does FRA part 213 emphasize?
• What is meant by "working capital"?
• What does the statement of cash flows highlight about a company?
• What does it mean to amortize an asset?
• What is defined as a defect in railroad context?
• Does FRA provide specifics regarding the use of gage rods?
• What aspect of a company does the balance sheet represent?
• In the context of business finance, what does tax accounting primarily handle?
• What can audit trails be used for in financial systems?
• What corrective action is recommended for a spring frog with excessive clearance?
• What does 'net present value' (NPV) represent?
• What is the required speed for trains over plug rail not in compliance after installation?
• How far apart are the stations for measuring Vmax according to FRA guidelines?
• How is "liquidity" defined in financial terms?
• What does unbalance measure in railroads?
• According to the FRA, what action is required for a rail with a torch cut end used in classes 3 - 5 track?
• What is the minimum flangeway depth required in Class 1 track according to the FRA?
• What does "fund accounting" refer to?
• Which type of organization typically uses fund accounting?
• What is a classified balance sheet?
• How many feet of the curve is evaluated to assess alignment for classes 3-5?
• Why might a company use financial leverage?
• What does variance analysis involve?
• What is a consequence of poor roadbed drainage related to signaling?
• What should be done with a torch cut rail end during emergency conditions?
• What are financial ratios used for?
• How much deviation is allowed in crosslevel (warp) between two points less than 62 feet apart on tangent track?
• Which type of items does a comprehensive income statement include that are not reflected in net income?
• What could be classified as a specific defect under FRA regulations?
• What does a comprehensive income statement include?
• What are common risks associated with poor roadbed drainage?
• What is meant by 'overhead' in accounting?
• Which of the following is true regarding the function of signals?
• What is the role of the statement of cash flows?
• What does market capitalization represent?
• What is gross profit?
• Which of the following are types of audit opinions?
• Where can you find information regarding rail defects in a "Dead Zone"?
• What is the purpose of a trial balance?
• What does the accounting equation represent?
• What is the minimum number of non-defective ties required within a 39-foot segment in a turnout for Class 5 track?
• What does BNSF require in terms of flangway width at turnouts?
• How do fixed costs differ from variable costs?
• What is the purpose of a "financial model"?
• What differentiates accounts receivable from accounts payable?
• What information does the BNSF Time Table provide?
• After taking alignment readings, how do you calculate the largest deviation from uniformity?
• What is one method for de-stressing rail as per BNSF CWR policy?
• The FRA requires alignment to be measured with what lengths of chords for curved track?
• How is the class of a curve determined if the high rail has varying super elevation measurements?
• What determines the class of a track according to FRA standards?
• What is one criterion that makes a wood tie defective according to FRA?
• What equation should be used to check the maximum train speed on a curve with a 3 degree curve and 2-1/4" superelevation?
• What should be a primary safety consideration during inspections?
• Which chord length is exclusively used on class 1 and 2 curved tracks?
• What essential measurement is referred to as Measurement A in the context provided?
• In which classes is the use of a rail with a torch cut end as a temporary repair allowed?
• If a guard check gage measurement reads 54 7/16 inch, what is the freight service speed for this track?
• What is superelevation in relation to rail curves?
• What does the concept of "trade-offs" in financial decisions refer to?
• When a frog point is broken out more than specified dimensions, what must be done?
• What kind of deterioration can make a concrete tie defective according to FRA?
• How is materiality defined in financial reporting?
• What is the acceptable gap between the tie plate shoulder and the rail base in class 4 track?
• How is net income defined?
• What do closing entries accomplish?
• Which of the following is not a factor in calculating unbalance?
• If a defect is discovered at milepost 117.3, does the head end restriction protect this defect?
• Which of the following describes a feature of a classified balance sheet?
• What does the FRA require regarding torch cut bolt holes in rail for classes 2 through 5 track?
• What is required under the base of the rail for classes 3-5 track according to the FRA?
• In accounting, what does "liability" mean?
• What essential measurement is referred to as Measurement B in the context provided?
• The defect that occurs due to warp in track is identified by measuring what?
• What is one responsibility of a qualified person under 213.7b?
• What are "intangible assets"?
• What does a use of 213.9b indicate about the track in question?
• If the gage on class 4 track is measured at 57" and there's an observed gap and plate movement, what is the initial action?
• What does GAAP stand for?
• What do profitability ratios measure?
• What condition allows for a 1/2 inch relative movement of the tie plate to the crosstie?
• What is the standard track gauge required?
• Which governing safety document outlines the standards for track inspections for BNSF?
• What does double-entry accounting ensure?
• How does the FRA limit superelevation?
• What represents shareholder equity?
• In class 1 track, the run off in any 31 feet of rail at the end of a raise cannot exceed how many inches?
• Which of the following conditions would be searched for using a track surface chart?
• What is the primary focus of tax accounting?
• What does the term "class specific defect" refer to?
• If spikes are found under the base of the rail on track with a 50 MPH freight speed, what should be the classification adjustment?
• What are the International Financial Reporting Standards (IFRS)?
• What is the maximum allowable wear on the raised guard of a self-guarded frog according to FRA regulations?
• What aspect does cost-volume-profit analysis help a company understand?
• What does NPV help evaluate regarding investments?
• What does FRA part 213 represent for railroad tracks in the general railroad system?
• What does cost-volume-profit analysis examine?
• Which chapter of BNSF CWR policy addresses slow order requirements?
• What information does a cash flow statement provide?
• What does return on equity (ROE) measure?
• What is meant by the term "capital structure"?