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F1 Exam Dumps : Financial Reporting

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Financial Reporting Questions and Answers

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Question 1

An entity has an inventory holding period of 52 days.

This means that the inventory:

Options:

A.

takes 52 days to arrive after it has been ordered.

B.

stays in the entity's warehouse for an average of 52 days before it is sold.

C.

takes 52 days to manufacture.

D.

takes 52 days to be paid for.

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Question 2

Country Q has the following rules in respect of capital tax on the disposal of assets:

*Capital gains are subject to tax at 25%.

*Capital losses can only be carried forward and offset against future capital gains.

The following data relates to ABC:

How much capital tax will be payable on the capital gain recorded in 20X3?

Give your answer to the nearest $.

Options:

Question 3

Which of the following does the phrase 'events after the reporting period' refer to?

Options:

A.

Material events which occur between the statement of financial position date and the date on which the financial statements are approved

B.

Material events which occur after the release of the statement of financial position

C.

Material events which occur before the statement of financial position date

D.

Material events which occur between the income statement date and the statement of financial position date

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