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F1 Exam Dumps : Financial Reporting

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Financial Reporting Questions and Answers

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Question 1

The United Kingdom (UK) uses a principle based approach to corporate governance which means:

Options:

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Question 2

Which of the following would be the most immediate impact of overtrading?

Options:

A.

An inability to pay trade payables.

B.

Having to offer bulk discounts to customers.

C.

An inability to pay dividends to shareholders.

D.

A shortage of inventory

Question 3

Which TWO of the following are features of a bank overdraft?

Options:

A.

A fixed amount of interest is determined for the period of the overdraft

B.

Repayments are scheduled in advance

C.

The amount off overdraft utilised will fluctuate according to the needs off the borrowing entity.

D.

The bank cannot demand repayment of the overdraft before the end of the agreed period.

E.

Interest is charged on the balance outstanding.

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