Q: ) POINT OUT THE MAJOR DIFFERENCES OF BALANCE SHEET (B/S), INCOME STATEMENT (I/S) AND CASH FLOW…
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Q: PFRS 9 requires entities to measure their financial assets
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- The primary objective of financial management Can be in the form of a. Maximise the entity’s asset b. Minimise an entity’s liabilities c. Achieve a balance between risk and return d. Achieve a balance between current assets and current liabilitiesOut of which equation is NOT CORRECT ? Please remember to select "WHICH IS NOT CORRECT" Select one: a. Capital = Total Assets - Total Liabilities b. Total Assets = Tangible Assets + Intangible Assets + Investments + Current Assets c. Total Liabilities = Total Assets - Shareholder's funds - Capital d. Owner's equity = Share capital + Reserve and SurplusWhich of the following are not tools of management accounting a. Cash Flow Statement b. Ratio Analysis c. Process Costing d. Funds Flow Statement
- Differentiate between net income, EPS, EBITDA,net cash flow, NOPAT, free cash flow, MVA, and EVA. What is the primary purpose of eachitem; that is, when and how is it used?Assets and liablities are classified on the balance sheet into correct and long-term categories in order to a. determine the value of the businessb. determine the cash flows of the businessc. yield information about liquidityd. distinguish them from extraordinary itemsMeaning of accounting principles with examples: i. Money measurement conceptii. Dual aspect concept iii. Objectivityiv. Historical cost
- 2) POINT OUT THE MAJOR DIFFERENCES OF BALANCE SHEET (B/S), INCOME STATEMENT (I/S) AND CASH FLOW STATEMENTWhich of the following fi nancial statements is generallyprepared fi rst?a. Income statement.b. Balance sheet.c. Statement of retained earnings.d. Statement of cash fl ows.The expense recognition principle (“matching”) controlsa. Where on the income statement expenses should bepresented.b. When revenues are recognized on the incomestatement.c. The ordering of current assets and current liabilities onthe balance sheet.d. When costs are recognized as expenses on the incomestatement.
- Explain the following measurement bases of the elements of financial statements andindicate how assets and liabilities are measured in each case:i. Historical cost ii. Current cost iii. Realisable valueThe accounting equation underlies the process used to capture the effect of economic events. The equation (Assets = Liabilities + Owners’ Equity) implies an equality between the total economic resourcesof an entity (its assets) and the total claims against the entity (liabilities and equity). It also implies thateach economic event affecting this equation will have a dual effect because resources always must equalclaims.Accounting equation is developed based on a. Revenue realization b. Dual aspect c. Money measurement d. Historical cost