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EXAM CODE $01$

$3.$ Financial statements only show items of a monetary nature. They cannot show the real strength of the business in terms of quality and quantity of human assets. Which of the following suggests a prudent way of mitigating the problem?

A$.$ Application of Human Resource Accounting

B$.$ Application of Uniform Accounting Systems

C$.$ Use of Inflation Accounting

D$.$ Use of International Financial Reporting Standard

$4.$ We are closely related. It is not possible to talk about one without the other. We are like twins and during analysis, we are always needed. Who are we$?$

A$.$ Assets and liabilities

B$.$ Creditors and debtors

C$.$ Income and expenses

D$.$ Interpretation and analysis

$5.$ In analyzing the performance of any business, which of the following statements should the analyst examine before going to the other statements?

A$.$ Cash flow statement

B$.$ Statement of financial position

C$.$ Statement of profit or loss

D$.$ Statement of shareholders' equity

$6.$ A business unit may be regarded as being in distress if the following conditions are satisfied:

I. Its accumulated losses at the end of the financial year are equal to or exceed its net worth.

II$.$ Where demand by the secured creditors of a company represents $50\%$ or more of its outstanding amount of debt.

III. There is erosion in the net worth due to accumulated losses to the extent of $50\%$ of its net worth during the previous accounting year.

A$.$ I and II only

B$.$ I and III only

C$.$ I, II and III

D$.$ II and III only

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