1) Who issues International Financial Reporting Standards?
2) Which of the following statements is true?
3) Identify, by indicating the relevant box in the table below, whether each of the following statements is true or false.
A. A supplier of goods on credit is interested only in the statement of financial position, i.e., an indication of the current state of affairs.
B. The objective of financial statements is to provide information about the financial position, performance and changes in financial position of an entity that is useful to a wide range of users in making economic decisions.
4) Which of the following statements best defines a statement of financial position?
5) Which of the following are advantages of trading as a limited liability company?
- Operating as a limited liability company is more risky than operating as a sole trader because the sole trader is only liable for the debts up to the amount he has invested whereas shareholders of a business are liable for all the debts of the business.
- Operating as a limited liability company makes raising finance easier because additional shares can be issued to raise additional cash.
6) What is the main purpose of financial accounting?
7) Which of the following best describes corporate governance?
8) Which of the following statements relating to a partnership of twenty persons and a limited liability company with twenty shareholders, each with a five per cent shareholding, is true?
9) Which ONE of the following statements correctly describes how International Financial Reporting Standards (IFRSs) should be used?
10) Are the following statements relating to the IASB’s Conceptual Framework for Financial Reporting true or false?
A. It is a financial reporting standard
B. It acts as authoritative where a specific IFRS conflicts with the conceptual framework
C. It assists preparers in developing consistent accounting policies when no standard applies
D. It assists all parties in understanding and interpreting IFRS Standards