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F1 Exam Dumps : Financial Reporting

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Financial Reporting Questions and Answers

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Question 1

In which of the following concepts is profit an increase in the nominal value of capital over a period?

Options:

A.

Inflationary capital maintenance

B.

financial capital maintenance

C.

Operating capital maintenance

D.

Physical capital maintenance

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Question 2

At 31 December 20X4 the directors of MNO decide to revalue its property. Before revaluation adjustments the balances relating to property are as follows:

The property has been revalued at $1,600,000.

How much will be included within MNO's statement of financial position at 31 December 20X4 for revaluation surplus?

Options:

A.

$400,000

B.

$1,190,000

C.

$1,600,000

D.

$810,000

Question 3

EF is a large manufacturing entity with several of its manufacturing sites in different locations. Currently all of the sites have a local procurement department. EF's board are looking to implement a centralized purchasing system.

Match the tokens according to whether you believe each statement is either an advantage or disadvantage of implementing a centralized purchasing system for EF.

Options:

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