FUNDAMENTALS OF FINANCIAL MANAGEMENT PRELIM EXAM

This financial statement presents the company's financial position at a given period.

• Statement of Comprehensive Income

• Statement of Retained Earnings

• Statement of Financial Position

• Statement of Cash Flows

It is a component of Shareholder's Equity which consists of the issuance of the company's own share at their par or stated value.

• Reserves

• Share capital

• Retained Earnings

• None of the above.

It consists of recognized gains and losses that are not included in the income statement but are found in the equity section of the Statement of Financial Position.

• Current Asset

• Income

• Comprehensive income

• Retained earnings

This component consists of the accumulated earnings of the company, prior period adjustment for errors, dividends declared/paid, effect of changes in accounting policy and appropriated retained earnings.

• Share capital

• Reserves

• Retained earnings

• None of the above.

These are activities related in the generation of the principal revenue of the firm.

• Investing

• Financing

• Operating

• Cash flow

These are cash flows from purchasing or selling long-term assets and other long-term investments.

• Investing

• Financing

• Operating

• Cash flows

These are the company's cash inflows or outflows involving its owners (equity financing) and creditors (debt financing).

• Investing

• Financing

• Operating

• None of the above.

This is where you can find bits or sets of information that cannot be disclosed on the face of the financial statements.

• Secret accounts

• Statement of changes in equity

• Income statement

• Notes to the financial statements

This statement shows the movements (receipts and disbursements) of cash for one whole period, generally one year.

• Statement of financial position

• Statement of Retained earnings

• Statement of cash flows

• Statement of comprehensive income

This statement presents the result of the firm's operation or performance for a given time.

• Statement of financial position

• Income statement

• Statement of retained earnings

• Statement of cash flows