WorksheetsFinancial Reporting and Analysis (FRA) quiz
Total questions: 20
Worksheet time: 10mins
What is the Statement of Changes in Equity (SCE) prepared for?
As on a particular date.
For a period
Only when there is a change in capital
Only for public companies
Equity is described as an "internal" liability because:
It represents funds owed to external creditors.
It is calculated internally by the finance team.
The entity has to pay back the owners on liquidation.
It is used to fund internal operations.
Which of the following components are typically included in Equity?
Assets minus Liabilities.
Company profits plus dividends minus capital invested.
Capital invested by owners plus company profits minus dividends
Liabilities plus Net Income.
The Statement of Changes in Equity (SCE) primarily provides detailed movements within which major financial statement section?
Cash Flow from Financing
Liabilities
Balance Sheet (Equity section)
Statement of Profit and Loss
The basic accounting equation shown on the Balance Sheet (BS) is:
Income = Expenses + Net Profit
Assets = Liabilities + Equity (A=L+E).
Cash Flows = Operating + Investing + Financing
Equity = Assets - Income
Which financial statement is prepared "as on" a particular date?
Statement of Profit and Loss (SPL).
Statement of Cash Flows (SCF).
Statement of Changes in Equity (SCE).
Balance Sheet (BS).
Which of the following are considered Permanent (balance carried forward year on year) in accounting?
Incomes and Expenses (SPL).
Dividends and Interest.
Assets, Liabilities, and Equity (BS).
Cash Flows from all activities (SCF).
The Statement of Profit and Loss (SPL) shows the entity's:
Financial status.
Cash inflows and outflows.
Performance and details of Incomes and Expenses.
Changes in owner's capital.
Which statement is correct regarding the result of a Statement of Profit and Loss (SPL)?
If Expenses > Incomes, the result is Net Profit.
If Incomes > Expenses, the result is Net Profit.
Net Loss is only possible if Expenses = Income.
The SPL result always equals the Cash Flow from Operations.
Which statement primarily shows cash inflows and outflows across Operating, Investing, and Financing activities?
Balance Sheet (BS).
Statement of Profit and Loss (SPL).
Statement of Changes in Equity (SCE).
Statement of Cash Flows (SCF).
A resource that gives future benefits to its owner and is "owned" by the entity is called an:
Expense.
Liability.
Equity.
Asset.
What is an Expense?
Value generated by selling goods/services.
An obligation to be settled by giving up assets.
Net assets.
The cost of generating income.
Which accounting concept refers to the practice of recording and reporting transactions when they occur, regardless of when cash is exchanged?
Historical Cost Principle.
Going Concern Assumption.
Accrual Basis.
Monetary Unit Assumption.
Which principle relates to the use of a financial statement to recognize when transactions are complete and record revenue?
Matching Principle.
Full Disclosure Principle.
Realisation Principle.
Conservatism Principle.
Which of the following is not listed as a basic accounting term in the standard financial statements?
Assets.
Income.
Inventory.
Liabilities.
Which accounting framework is known to have 'converged' with IFRS and is currently used for financial reporting by large companies in India?
US GAAP.
Indian GAAP.
IFRS.
Indian Accounting Standards (Ind AS).
IFRS is considered 'principles-based.' In contrast, US GAAP is often described as being:
Accrual based.
Fair value based.
Rule based.
Historical cost based.
What is the fundamental distinction between Accounting and Finance in terms of function?
Finance reports transactions, and Accounting manages resources.
Accounting records, summarises, and reports business transactions; Finance deals with managing resources and decision making.
Accounting is for investors, and Finance is for managers.
They are essentially the same field.
At the start of the year, a company had Equity of ₹5,00,000. During the year, Assets
increased by ₹1,50,000 and Liabilities decreased by ₹50,000. What is the Equity at the end
of the year?
6,00,000
3,00,000
4,00,000
7,00,000
Historically, which sector has typically experienced the most significant increase in its contribution to GDP in developed economies like the US since the mid-20th century?
Agriculture.
Industry.
Services.
Manufacturing.
