accounting assignment multiple choice

1.1 Which item is NOT a compulsory requirement for the corporate annual report according to IFRS?

Select one:

a.Management's discussion and analysis.

b.Statement of Changes in Equity.

c.Statement of Financial Position.

d.Statement of Comprehensive Income

1.2 What is meant by internal benchmarking in ratio analysis?

Select one:

a.Comparing the results of the company against rival companies.

b.Comparing the company's performance against industrial performance.

c.Measurement of actual performance of the rival companies against target.

d.A standard measure to compare the actual performance of the company against target.

1.3 Which item may be of concern when analysing the cash flow from investing activities?

Select one:

a.Acquisitions of equipment, sale of property and purchase of equity securities

b.Decreasing accounts receivable.

c.Payments of dividends.

d.Increasing inventories.

1.4 Which statement is INCORRECT about financial ratios?

Select one:

a.Financial ratios can serve as screening devices.

b.Financial ratios are predictive.

c.No rules of thumb apply to the interpretation of financial ratios.

d.Financial ratios can indicate areas of potential strength and weakness.

1.5 The statement of cash flows is useful to the analyst because__________.

Select one:

a.focusing on net income is truthful if a company has a healthy profit and it can translate the profit into cash

b.it is the only source in statement of comprehensive income for learning about cash generation

c.focusing on net income can be misleading if a company has a healthy profit, but cannot translate the profit into cash

d.the statement of cash flows reveals why a company was able to generate a profit