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q27
The classification and therefore subsequent measurement of financial assets depends on…?
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- Q1 The classification and therefore subsequent measurement of financial assets depends on…? Select one: a. The amount and terms of payment for the purchase of the financial assets. b. The specifications of the external auditors. c. Maturity and cash flows received on maturity of the financial assets d. The business model of the reporting entity considering management’s intention of holding the portfolio of financial assets.Q37 What is the objective of financial statements according to the framework? a. 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 b. To prepare and present a balance sheet, an income statement, a cash flow statement, and a statement of changes in equity only. c. To prepare only financial statements in accordance with all applicable standards and interpretations. d. To prepare and present comparable, relevant, reliable and understandable information to investors and creditors only.Q7) Which of the following formula does NOT reflect the firm’s liquidity? Group of answer choices a) (Current Assets – Inventory) / (Current Liabilities) b) (Total Liabilities) / (Total Assets) c) (Current Assets) / (Current Liabilities) d) (Current Assets) / (Total Liabilities)
- Q4. The subject matter of an attestation can be one of the following Except a. Financial statements or future projections b. Internal Control c. Risk Assessment d. Bookkeeping or TaxesQ17 Which of the following journal entries correctly reflect settlement date accounting? Select one: a. DR Liability for acquisition of financial assetCR Bank b. DR Financial asset (to be delivered)CR Liability for acquisition of financial asset c. DR Debtor (to deliver the financial asset)CR Liability for acquisition of financial asset d. DR Financial asset (delivered)CR BankQuestion 12 What is the objective of financial reporting? Answers: Provide information that clearly portrays nonfinancial transactions. Provide information that excludes claims to the resources. Provide information about the reporting entity that is useful to present and potential equity investors, lenders, and other creditors. Provide information that is useful to management in making decisions.
- What is the qualitative characteristic of financial statements according to the Framework? a. Qualitative characteristics are broad classes of financial effects of transactions and other events b. Qualitative characteristics are the attributes that make the information provided in financial statements useful to others c. Qualitative characteristics measure the extent to which an entity has complied with all relevant standards. d. Qualitative characteristics are non-quantitative aspects of an entity’s position and performance and changes in financial position.Which of the following statements are true regarding financial instruments? (i) Financial instruments comprise of both financial assets and financial liabilities (ii) A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity. (iii) Primary instruments are financial instruments in which an investor has made an investment in a specific instrument. (iv) A derivate instrument is normally linked to a primary instrument and transfers the financial risks inherent in the underlying primary instrument. Select one: a. (i) and (ii) b. (i) and (iii) only c. (i) only d. (i), (ii), (iii) and (iv)What is a primary objective of financial reporting? A. To provide useful information to investors, creditors, and financial statement users. B. All of these answers. C. To provide cash flow information (amounts, timing, and uncertainty). D. To provide information about resources and claims to resources.
- 30. Financial markets: A. facilitate the exchange of financial assets B. provide information about prices of financial assets C. provide a channel for funds to flow between the providers and users of funds D. All of the given answers.S1: For financial reporting purposes, an entity’s risk assessment process includes its identification, analysis, and management of risks relevant to the preparation of financial statements in accordance with applicable financial reporting framework.S2: The risk of material misstatement is broader in scope compared to business risks. Group of answer choices Both S1 and S2 are correct. Only S1 is correct. Both S1 and S2 are incorrect. Only S2 is correct.7. Determine the response that best completes the following statements or questions. A) The primary objective of financial reporting is to provide information. multiple choice 1 About a firm's management team. Useful to capital providers. About a firm's financing and investing activities. Concerning the changes in financial position resulting from the income-producing efforts of the entity. B) Statements of Financial Accounting Concepts issued by the FASB multiple choice 2 Represent GAAP. Identify the conceptual framework within which accounting standards are developed. Have been superseded by SFASs. Are subject to approval of the SEC. C) In general, revenue is recognized when multiple choice 3 A good or service has been delivered to a customer. The sales price has been collected. A contract has been signed. A purchase order has been received. D) In depreciating the cost of an asset, accountants are most concerned with…