Free Printable Chapter 1- Financial Statement

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Chapter 1- Financial Statement

Total questions: 14

Worksheet time: 12mins

Name

Class

Date

A complete set of financial statements includes the following components, except

Statement of financial position, statement

of comprehensive income and statement of cash flows.

Statement of changes in equity

Notes, comprising a summary of significant

accounting policies and other explanatory information

Reports and statements such as environmental

reports and value added statements.

What is the objective of financial statements?

To provide information about the financial position, financial performance and changes in financial position of an entity that is useful to a wide range of users in making economic decisions.

To prepare and present a statement of financial position, statement of comprehensive income, statement of cash flows and statement of changes in equity.

To prepare and present relevant, reliable, comparable and understandable information to investors and creditors.

To prepare and present financial statements in accordance with all applicable PFRS and Interpretations.

To meet the objective of providing information about financial position, financial performance and cash flows of an entity, financial statements should provide information about all of the following, except

Assets, liabilities and equity

Income and expenses, including gains and losses

Contributions by and distribution to owners in their capacity as owners.

Nature of the entity's business activities

The primary responsibility for the preparation and presentation of the financial statements of an entity is reposed in the

Management of the entity

Internal auditor

External auditor

Controller

Which of the following statements is incorrect concerning fair presentation of financial statements?

Fair presentation requires the faithful representation of the effects of transactions and other events.

Financial statements shall present fairly the financial position, financial performance and cash flows of an entity.

In virtually all circumstances, a fair presentation is achieved by compliance with applicable PFRS.

An entity whose financial statements comply with PFRS shall not make an explicit and unreserved statement of such compliance in the notes.

Technically, offsetting in financial statements is accomplished when

The allowance for doubtful accounts is deducted from accounts receivable.

The accumulated depreciation is deducted from property, plant and equipment.

The total liabilities are deducted from total assets to arrive at net assets.

Gains or losses from disposal of noncurrent assets are reported by deducting from the proceeds the carrying amount of the assets and the related disposal cost.

Materiality depends on

The nature of the omission or misstatement.

The size of the omission or misstatement.

The size and nature of the omission or misstatement judged in the surrounding circumstances.

The judgement of management.

Which of the following is included in a complete set of financial statements?

A statement by the board of directors of compliance with local legislation

A statement of changes in equity

Summarized statements of financial position for the last five years

Value added statement

What is the objetive of Financial Statement?

4 lines

10.

What is the purpose of preparing the Statement of Financial Performance?

inform stakeholders the profitability of business

inform stakeholders the income and expenses of business

inform stakeholders the nature of business

inform stakeholders the size of business

11.

What is the purpose of the Statement of Financial Position?

inform stakeholders the assets and liabilities of 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 the owner's equity of business

12.

Which of the following are Financial Statements for business?

Trial Balance Account

Ledger

Income Statement

Balance Sheet

13.

The users of accounting information are...

Internal users

External users

Internal & External users

14.

Which one is the internal user?

Potential investor

Management of a company

Creditor

Reset

Chapter 1- Financial Statement

Total questions: 14

Worksheet time: 12mins

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