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F1 Exam Dumps : Financial Reporting

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Financial Reporting Questions and Answers

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Question 1

From the list below identify the item that appears in the statement of financial position.

Options:

A.

The amount of interest charged on loans during the year.

B.

The amount of loans outstanding at the year end.

C.

The amount of loans repaid during the year.

D.

The amount of interest actually paid during the year.

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Question 2

An entity's inventory days are 45 days.

An entity ceased to manufacture a product in 20X4. Raw materials used solely in the manufacture of that product are still held in inventory at 31 December 20X4.

Place the appropriate response below to show how inventory days will be affected if this raw material inventory is written off as obsolete.

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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