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F1 Exam Dumps : Financial Reporting

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Financial Reporting Questions and Answers

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Question 1

ABC uses an aggressive approach to managing its working capital. XYZ uses a conservative approach to managing its working capital.

Which of the following is ABC more at risk of compared to XYZ?

Options:

A.

Inventory obsolescence

B.

Running out of cash

C.

High finance costs

D.

Receivables not paying on time

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Question 2

Corporate governance is the means by which an entity is operated and

Options:

Question 3

In accordance with the Conceptual Framework for Financial Reporting, which of the following describes the historical cost measurement basis for an asset?

Options:

A.

The amount paid when the asset was purchased.

B.

The present value of future cash flows generated from the asset.

C.

The cost to acquire an equivalent asset at the measurement date.

D.

The amount that would be received on the sale of the asset.

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