3. Information about the accounting policies adopted in preparing the financial statements are explained in the:
   1. statement of changes in equity
   2. notes to the financial statements
   3. statement of cash flows
   4. corporate governance statement

9. According to the Financial Reporting Standard 101 (FRS 101): Presentation of Financial statement, a complete set of financial statements must consist of the following EXCEPT:

1. statement of comprehensive income
2. statement of changes in equity
3. statement of financial position
4. statement of internal control

10. Meri is a public accountant for Fifi Berhad. His opinion given on the sufficiency of financial records kept by the company in accordance to the stated act and compliance with the approved accounting standards can be found in which of the following report for his client?

1. Directors report
2. Audit committees report
3. Chairmans statement
4. Auditors report

The following ratios were given for two similar business:

	Sin Trading	Tok Trading
Stock turnover	6 times	8 times
Current ratio	2 times	3 times
Gross profit margin	30%	40%
Net profit margin	15%	10%

18. Refer to the above. The following statements are true EXCEPT for:

1. The sales of Tok Trading is increasing much faster than that of Sin Trading
2. The financial condition of Sin Trading is much stronger than Tok Trading
3. Tok Trading has more ability to repay its current liabilities when they become due
4. The gross profit margin of Tok Trading is 10 cents more than that of Sin Trading to cover the operating and non-operating expenses for a particular accounting period