ul stc ksa 4G 7 62% 9:07 PM eduhub-Ims4.psu.edu.sa 2 of 2 Identify which of the following statements are true or false. 1 The directors of a company are ultimately responsible for the preparation of financial statements, even if the majority of the work on them is performed by the finance department. 2 If financial statements are audited, then the responsibility for those financial statements instead falls on the auditors instead of the directors. 3 There are generally no laws surrounding the duties of directors in managing the affairs of a company A 1 only B 2 only C 2 and 3 only D 1 and 3 only (2 marks) Which groups of people are most likely to be interested in the financial statements of a sole trader? 1 Shareholders of the company 2 The business's bank manager 3 The tax authorities 4 Financial analysts 1 and 2 only B 2 and 3 only 2, 3 and 4 only D 1, 2 and 3 only (2 marks) Identify, by indicating the relevant box in the table below, whether each of the following statements is true or false A supplier of goods on credit is True False interested only in the statement of financial position, ie an indication of the current state of affairs Then The objective of financial True False statements is 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 O WHATSAPP now JB @ ACC111-Section 665 Financial reporting is only carried out by large quoted companies. Is this statement correct? A Yes B No Which of the following is most useful for managers? A Financial statements for the last financial year B Tax records for the past five years Budgets for the coming financial year D Bank statements for the past year Which of the following is an asset according to the definition in the Conceptual framework? Bank overdraft B Factory buildings Payables D Amounts owed to tax authorities A business entity is owned and run by Alpha, Beta and Gamma. What type of business is this an example of? A Sole trader B Partnership Limited liability company D None of the above Which of the following is an example of a liability? Inventory B Receivables C Plant and machinery D Loan Which ONE of the following statements correctly describes the contents of the Statement of Financial Position? A list of ledger balances shown in debit and credit columns B A list of all the assets owned and all the liabilities owed by a business A record of income generated and expenditure incurred over a given period D A record of the amount of cash generated and used by a company in a given period (2 marks Which ONE of the following statements correctly describes the contents of the Statement of Profit or Loss? A B D A list of ledger balances shown in debit and credit columns A list of all the assets owned and all the liabilities owed by a business A record of income generated and expenditure incurred over a given period A record of the amount of cash generated and used by a company in a given period T
