Chapter 4

Question 1

The first item in the analysis and commentaries section of an annual report is typically
A: Managment analysis and discussions
B: Chairman’s message/letter to shareholders
C: Auditors report on the Companys Financial Position and Performance
D: Segment Performance

Answer 1

B

Question 2

WHO is responsible for the preparation of financial statement? 
A: Auditor 
B: management 
C: CFO and accounting staff 
D: chairman of the board

Answer 2

B

Question 3

IAS1 does not require the following item to be displayed on the statement of financial position 
A: Provision 
B: Cash and cash equivalent 
C: Accumalated depreciation 
D: Intangible asset

Answer 3

C

Question 4

Which of the following statements best describes nots to the financial statements?
A.They are part of a complete set of financial statements
B.They are used to explain how the company has performed during the financial year
C.They provide a breakdown of all the numbers that appear on financial statements
D.The more important numbers are shown on the financial statements and the less important ones are shown in the notes to the financial statements

Answer 4

A