introduction to financial reporting

______ is concerned with the production of financial statements for external users.

• Management reporting

• Environmental reporting

• Financial accounting

Companies have --------?

• Unlimited liability

• Limited liability

A present obligation of an entity to transfer an economic resource as a result of past events is ______

• Asset

• Liability

• Income

• Equity

Pick the Non-current asset.

• Cash

• Inventory

• Receivable

• Building

Equity = ?

• Asset - Liability

• Liability - Asset

• Income - Expense

• Expense + Income

which statement contains both income and expenses?

• statement of financial position

• statement of profit or loss

• statement of cash flow

• statement of changes in equity

A present economic resource controlled by the entity as a result of past events is _______

• Asset

• Liability

• Equity

• Expense

Which one is not a current liability?

• Trade payables

• Overdraft

• Long term loan

• Short term loan

Which statement contains all of the following - asset, liability, and equity?

• statement of financial position

• statement of profit or loss

• statement of cash flow

• statement of changes in equity

How to record credit purchase?

• Dr Purchase

  Cr Cash

• Dr Cash

  Cr purchase

• Dr Purchase

  Cr payables

• Dr Payables

  Cr purchase