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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 THREE of the following statements about government grants are INCORRECT?

Options:

A.

A grant is recognised as revenue

B.

Grants must not be deducted from the related expenses in financial statements

C.

Capital grants relate to cash inflow and outflow

D.

A compensatory grant should be recognised in statements when it is received, not when the expenses it applies to occurred

E.

A grant is recognised only when there is reasonable assurance that the entity will comply with any conditions attached to the grant

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Question 2

Below are extracts from LLL's financial statements for the year ended 31 December 20X2.

Depreciation of $25,000 was charged on properly, plant and equipment in the year and there were no disposals

What is the cash generated from operations for inclusion in LLL's statement of cash flows for the year ended 31 December 20X2?

Options:

A.

$355 000

B.

$390,000

C.

$415,000

D.

$435,000

Question 3

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

Options:

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