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F1 Exam Dumps : Financial Reporting

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Financial Reporting Questions and Answers

Question 1

A conservative policy for financing working capital is one where short-term finance is used to fund:

Options:

A.

All of the fluctuating current assets and part of the permanent current assets.

B.

Part of the fluctuating current assets, but no part of the permanent current assets.

C.

All of the fluctuating current assets, but no part of the permanent current assets.

D.

Part of the fluctuating current assets and part of the permanent current assets.

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Question 2

Which THREE of the following matters should an entity consider when determining the credit terms granted to a customer?

Options:

A.

Typical credit terms operating within the industry

B.

Risk of non-payment

C.

Selling price of the goods being sold to the customer

D.

Bargaining power of the customer

E.

Number of suppliers

F.

Discount offered by suppliers for early payment

Question 3

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: