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WorksheetsFinancial Reporting Test 1
Total questions: 15
Worksheet time: 8mins
Name the user of financial statement who primarily need information inthe decision making of buying, selling or holding the shares of an entity.
Lenders
Credit Rating Agencies
Customers
Investors
Objectives of financial reporting includes providing of information to
Management, Investors and Shareholders
Management, Investors and Auditors
Management, Government and Auditors
All of the above
Qualitative characteristic of Financial information which is free from biasand material errors can be referred to
a. Reliability
b. Relevance
Both (a) and (b) above
None of the above
According to which of the following motives of disclosure, the information disclosed by companies is to avoid payment of penalty and fines?
Ideological Goal Consideration
Users Goal Consideration
Political Goal Consideration
All of the above
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.
True
False
Neither true, nor false
All of the above
Which of the following is not true incase of financial reporting?
Financial reporting highlights important financial data
Financial reporting shows the application of financial policy
Financial reporting shows true financial position of company
None of the above
Accounting Standards Board ( ASB) was formulated on
21st April 1994
21st April 1992
21st April 1997
21st April 1999
The first draft of the standards prepared by the Study Groups is called
Initial Draft
Preliminary Draft
Basic Draft
Study Group Draft
Full form of FICCI is
Federation of Indian Chambers of Commerce and Industry
Federation of Indian Chambers of Companies and Industry
Federation of Industries Chambers of Commerce and Infrastructure
Forum of Indian Chambers of Commerce and Industry
Management needs financial information of the company for planning, benchmarking, analyzing and
Coordinating
Directing
Decision Making
Recruiting
Corporate Social Responsibility is a corporate initiative to assess and take responsibility for the company’s effect on its
Building
Environment
Environment and Society
Revenue
CSR is to be practiced by the company whose turnover is
Rs. 1,000 crore or more
Rs.500 crore or more
Rs. 800 crore or more
Rs. 200 crore or more
Current Corporate Reporting Practices of Indian Companies include
Published Financial Statements
Elements of Annual Reports
Abridged Balance sheet
All of the above
Disclosure means communication of information about the company to
People inside the company
People outside the company
Chartered Accountant
Auditor
Corporate financial reports includes
Income statement
Cash flow statement
Balance sheet
All of the above
