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F1 Exam Dumps : Financial Reporting

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Financial Reporting Questions and Answers

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Question 1

Which of the following would NOT be a source of taxation rules for a country?

Options:

A.

Double tax treaties

B.

Directives from international bodies

C.

International accounting standards

D.

Precedents based on previous legislation

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Question 2

EF is a large manufacturing entity with several of its manufacturing sites in different locations. Currently all of the sites have a local procurement department. EF's board are looking to implement a centralized purchasing system.

Match the tokens according to whether you believe each statement is either an advantage or disadvantage of implementing a centralized purchasing system for EF.

Options:

Question 3

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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