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F1 Exam Dumps : Financial Reporting

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Financial Reporting Questions and Answers

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

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

Question 3

Which TWO of the following would improve a company's short term cash flow position?

Options:

A.

Postponing non essential capital expenditure

B.

Increasing the working capital cycle by making payments to suppliers early

C.

Taking advantage of bulk discounts offered on inventory purchases

D.

Reducing levels of inventory by implementing a just in time system for purchasing

E.

Paying a bonus to staff for exceptional performance