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Financial Reporting Test 1

Total questions: 15

Worksheet time: 8mins

Name
Class
Date
1.

Name the user of financial statement who primarily need information inthe decision making of buying, selling or holding the shares of an entity.

a)

Lenders

b)

Credit Rating Agencies

c)

Customers

d)

Investors

2.

Objectives of financial reporting includes providing of information to

a)

Management, Investors and Shareholders

b)

Management, Investors and Auditors

c)

Management, Government and Auditors

d)

All of the above

3.

Qualitative characteristic of Financial information which is free from biasand material errors can be referred to

a)

a. Reliability

b)

b. Relevance

c)

Both (a) and (b) above

d)

None of the above

4.

According to which of the following motives of disclosure, the information disclosed by companies is to avoid payment of penalty and fines?

a)

Ideological Goal Consideration

b)

Users Goal Consideration

c)

Political Goal Consideration

d)

All of the above

5.

Communication by way of corporate disclosure is not only called for

by shareholders and investors to analyze the relevance of their

investments, but also by the other stakeholders, particularly for

information about corporate social and environmental policies.

a)

True

b)

False

c)

Neither true, nor false

d)

All of the above

6.

Which of the following is not true incase of financial reporting?

a)

Financial reporting highlights important financial data

b)

Financial reporting shows the application of financial policy

c)

Financial reporting shows true financial position of company

d)

None of the above

7.

Accounting Standards Board ( ASB) was formulated on

a)

21st April 1994

b)

21st April 1992

c)

21st April 1997

d)

21st April 1999

8.

The first draft of the standards prepared by the Study Groups is called

a)

Initial Draft

b)

Preliminary Draft

c)

Basic Draft

d)

Study Group Draft

9.

Full form of FICCI is

a)

Federation of Indian Chambers of Commerce and Industry

b)

Federation of Indian Chambers of Companies and Industry

c)

Federation of Industries Chambers of Commerce and Infrastructure

d)

Forum of Indian Chambers of Commerce and Industry

10.

Management needs financial information of the company for planning, benchmarking, analyzing and

a)

Coordinating

b)

Directing

c)

Decision Making

d)

Recruiting

11.

Corporate Social Responsibility is a corporate initiative to assess and take responsibility for the company’s effect on its

a)

Building

b)

Environment

c)

Environment and Society

d)

Revenue

12.

CSR is to be practiced by the company whose turnover is

a)

Rs. 1,000 crore or more

b)

Rs.500 crore or more

c)

Rs. 800 crore or more

d)

Rs. 200 crore or more

13.

Current Corporate Reporting Practices of Indian Companies include

a)

Published Financial Statements

b)

Elements of Annual Reports

c)

Abridged Balance sheet

d)

All of the above

14.

Disclosure means communication of information about the company to

a)

People inside the company

b)

People outside the company

c)

Chartered Accountant

d)

Auditor

15.

Corporate financial reports includes

a)

Income statement

b)

Cash flow statement

c)

Balance sheet

d)

All of the above