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F1 Exam Dumps : Financial Reporting

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Financial Reporting Questions and Answers

Question 1

Which of the following is correct?

The primary purpose of a cash budget prepared on a monthly basis is to determine:

Options:

A.

next month's sales volumes.

B.

the amount of inventory to purchase in the following month.

C.

when to pay employees salaries.

D.

whether there will be sufficient cash in the bank to meet requirements.

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Question 2

In accordance with IAS 1 Presentation of Financial Statements, which of the following will be shown in the statement of changes in equity?

Options:

A.

Proceeds from share issue, dividends received and profit for the period.

B.

Proceeds from share issue, other income and profit for the period.

C.

Proceeds from share issue, dividends paid and revaluation surplus.

D.

Other income, dividends paid and revaluation surplus.

Question 3

Which of the following would NOT be a risk or impact of overtrading?

Options:

A.

Increase in interest payments

B.

Increased borrowings

C.

Shortage of working capital

D.

Expanding too quickly