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F1 Exam Dumps : Financial Reporting

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Financial Reporting Questions and Answers

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Question 1

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

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Question 2

In accordance with IAS 1 Presentation of Financial Statements, which of the following will be shown in the statement of changes in equity?

Options:

A.

Proceeds from share issue, dividends received and profit for the period.

B.

Proceeds from share issue, other income and profit for the period.

C.

Proceeds from share issue, dividends paid and revaluation surplus.

D.

Other income, dividends paid and revaluation surplus.

Question 3

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.

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