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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 matters should an entity consider when determining the credit terms granted to a customer?

Options:

A.

Typical credit terms operating within the industry

B.

Risk of non-payment

C.

Selling price of the goods being sold to the customer

D.

Bargaining power of the customer

E.

Number of suppliers

F.

Discount offered by suppliers for early payment

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Question 2

Which of the following methods could be used by a tax authority to reduce tax evasion and avoidance?

Options:

A.

Increase tax rates to compensate for losses due to evasion.

B.

Reduce penalties for avoidance.

C.

Reduce requirements to have tax returns audited.

D.

Simplify the tax structure, minimizing allowances and exemptions.

Question 3

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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