FR2025

The main purpose of financial reporting is to:

• Calculate taxes owed to the government

• Show the company’s market share

• Provide information useful to decision-making

• Predict stock market movements

Which of the following is not a financial statement?

• Balance Sheet

• Income Statement

• Cash Flows

• Marketing Report

Assets are best described as:

• Obligations of the company

• Resources controlled by the company that provide future benefits

• Profit left after expenses

• Cash only

Prepaid insurance is recorded as an asset.

• True
• False

If total assets are 100,000 and liabilities are 40,000, equity must be:

• 140,000

• 100,000

• 60,000

• 40,000

If a company purchases equipment for cash, what is the effect?

• One asset increases, another asset decreases

• Assets increase and liabilities decrease

• Assets increase and equity increases

• Liabilities increase and assets decrease

A company buys inventory worth SAR 15,000 on credit. What is the journal entry?

• Dr Cash 15,000 ; Cr Inventory 15,000

• Dr Accounts Payable 15,000 ; Cr Inventory 15,000

• Dr Inventory 15,000 ; Cr Cash 15,000

• Dr Inventory 15,000 ; Cr Accounts Payable 15,000

Who is the best teacher at CBA

• Ms. Rawan

• Ms. Rawan

• Ms. Rawan

• Ms. Rawan

What happens if Assets ≠ Liabilities + Equity?

• The world ends 🌍💥

• You made a mistake, relax

• You just invented a new IFRS

• Blame the calculater

Under accrual accounting, revenues are recognized when:

• Cash is collected from customers

• An invoice is issued

• The customer payment

• Goods or services are provided to customers