WorksheetsFinancial Statements and Users
Total questions: 15
Worksheet time: 9mins
The typical set of financial statements of company consist of:
SOCI and SOFP
SOCIE
SOCF
BUDGETS
All the above
What is the purpose of preparing the Statement of Consolidated Income (SOCI)
inform stakeholders of the profitability of the business
inform stakeholders of the income and expenses of the business
inform stakeholders of the nature of the business
inform stakeholders of the size of the business
What is the purpose of the Statement of Financial Position (SOFP)?
inform stakeholders of the assets and liabilities of the business
provides information on how resources are obtained and used and the claim by the owner on the net assets of the business at a point in time.
provides information on how resources are obtained and used in the business at a point in time.
inform stakeholders of the owner's equity in the business
All of the following statements regarding the purpose of the Statement of Financial Position are correct except for?
Shows assets, liabilities and owner's equity
It is prepared at a point in time
It can assist users, such as bank managers, with decisions
Shows revenue, expenses and profit
The financial statement that reports whether the business earned a profit and also lists the revenues and expenses is called the:
Statement of Financial position
Statement of Changes in Equity
Statement of Cash Flows
Income Statement
Which group of users are most interested in financial statements to allow them to compare performance with previous years and other competitors. Identify areas of improvement and plan future resource allocation.
Employees
Managers
Government
Present Shareholders
Which group of users might use the financial statements to give them information on job security and provide them with a tool for future salary negotiations.
Potential Shareholders
Short term creditors
Competitors
Employees
Which group of users might use the financial statements to compare the profitability and future prospects of the company with others to ascertain the best investment option.
Potential Shareholders
Managers
Authorities
Employees
Which group of users are most interested in using the financial statements to help them make decisions on credit given?
Managers
Present Shareholders
Trade Payables
Auditors
This group of users might review the financial statements to ensure that the company adheres to all legal requirements - are they paying correct tax and VAT? Is the company compliant with Environmental and Health and Safety laws. Are any grants received being used appropriately?
Long term creditors
Management
Authorities
Competitors
This group of users are most interested in the overall performance of the company and its future stability and practices such as pricing policy.
Authorities
Managers
Auditors
Competitors
This group of users will use the financial statements to assess the performance of the company, allowing them to identify trends and make comparisons with other companies in same industry.
Authorities
Analysts
Employees
Potential Shareholders
Which financial statement would give Shareholders information on dividends paid?
Statement of consolidated Income
Statement of Changes in Equity
Statement of Financial Position
All of the above
Which Statement would give users information on how cash has been utilised in the company?
Statement of Cash Flow
Statement of Financial Position
Statement of Changes in Equity
Statement of Consolidated Income
This report investigates whether a company's financial statements comply with the rules and regulations.
Shareholders Report
Auditors Report
Director's Report
All of the above
