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WorksheetsFINANCIAL STATEMENTS FOR STEWARDSHIP AND DECISION MAKING
Total questions: 14
Worksheet time: 14mins
The users’ needs for financial information are as follows, except
Potential investors are interested to know about its profit assurance.
Employees are interested to know about the future growth prospects.
Creditors are interested to know how the wealth is generated.
Companies registered submit their annual financial statements as required by the Companies Act 1965.
Who is responsible in the issuance of new accounting standards in Malaysia?
Central Bank of Malaysia
Malaysian Accounting Standards Board (MASB)
Companies Commission of Malaysia
Securities Commission
What does the Annual Financial Report consist of?
Chairman’s statement, corporate governance statement, audit statement, directors’ report and financial statements
Corporate governance statement, audit statement, directors’ report, interim report and financial statements
Chairman’s statement, segmental report, audit statement, directors’ report and financial statements
Chairman’s statement, corporate governance statement, audit statement, directors’ report and social and environmental report
The financial statement consists of the following statements, except
Statement of Financial Position
Notes to the financial statement
Social and environmental report
Statement of changes in equity
An entity shall disclose their revenue in the
Statement of Financial Position.
Statement of Profit or Loss and Other Comprehensive Income.
Social and environmental report.
Statement of changes in equity.
Which of the following statement is true about the Social and Environmental Report?
This report is prepared by companies in every six months or twice a year.
This report is used to identify the trend from one period to another.
This report is compulsory for companies which have debt securities and equity (share) securities transacted to the public.
The rationale of preparing this report is due to the fact that the management is supposed to report the costs and benefits from its social and environmental activities.
Creditors of a business may want to use the accounts to
check that any amounts owing to them are likely to be paid when due.
be sure of an increasing share of the market.
check that the business is making a profit.
be sure that after-sales service will continue.
Below are the qualitative characteristics of a useful financial statement, except
Relevant
Understandable
Reliable
Voluntary
Which of the following is NOT an objective of financial reporting?
Provide information that is useful in investment and credit decisions.
Provide information about economic resources, claims to those resources and changes in them.
Provide information that is useful in assessing future cash flows.
Provide information on the liquidation value of a business.
Debtors of a business may want to use the accounts to
check that profits can be earned on sales.
be sure that after-sales service will continue.
check that they are not alone in owing money to the business.
be sure of an increasing share price of the market.
Which of the following characteristics of accounting information primarily allows users of financial statements to generate predictions about an organisation?
Reliability
Timeliness
Neutrality
Relevance
A public limited company is under a legal duty to disclose information to
banks
customers
shareholders
suppliers
The accounting principle meaning that when in doubt, the accountant should choose the method that will be least likely to overstate assets and revenue is called
The matching principle
Materiality
Prudence
The monetary unit assumption
Directors of a limited company are under an obligation to?
Send financial statements to employees
Send the summary of the financial statements to all shareholders
File copies of the financial statements with the registrar of companies
Produce financial statements which are correct in all respects
