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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 following data has been extracted from GH's accounting records:

What is GH's average inventory days for the year ended 31 March 20X3?

Options:

A.

39 days

B.

43 days

C.

25 days

D.

28 days

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Question 2

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.

Question 3

An entity has an inventory holding period of 52 days.

This means that the inventory:

Options:

A.

takes 52 days to arrive after it has been ordered.

B.

stays in the entity's warehouse for an average of 52 days before it is sold.

C.

takes 52 days to manufacture.

D.

takes 52 days to be paid for.

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