Financial Reporting quiz

What is Financial Reporting?

• The ability of a business to produce financial reports based upon customer surveys

• The process of producing financial statements which discloses an organisations financial status to stakeholders

• The process of using accounting information relevant to the reports

• The process of examining financial information

Who are the external users of Financial information?

• Primary users

• the owners use

• Secondary users

• Other users

What is the objective of General purpose financial statements?

• To determine potential future strategies in relation to the business

• To understand areas for improvement within the business

• To provide an overview of the inflows and outflows for the period so performance can be assessed

• • to provide a synopsis of performance, position and cash flow to assist users with evaluating how efficient and effective management has been. 

What does the Conceptual framework describe?

• The framework describes the basis for the development of Accounting Standards.

  
  

• • The Framework describes the objective of, and the concepts for, general purpose financial reporting.

• • Lays down the foundation for concepts that preparers of financial statements follow.

• Describes the general principles of financial accounting

What is the income statement?

• An income statement is a financial statement that shows a company's debts, trophies, and net wins over a specific period, serving to illustrate its success.

  
  

• An income statement is a financial statement that shows a company's liabilities, assets, and net losses over a specific period, serving to illustrate its poor performance.

  
  

• An income statement is a financial statement that shows a company's revenues, expenses, and net income over a specific period, serving to illustrate its profitability.

  
  

• An income statement is a financial statement that shows a company's criminal record, law suits, and net arrests over a specific period, serving to illustrate its credibility.

  
  

What is included in the Annual report?

• Financial snapshot

• Five year history

• chairman's message

• profit and loss summary

Who are the key figures in the financial reporting environment

• Australian securities and investment commission

• Financial reporting council

• Pauline Hansen

• Australian securities exchange

Which qualitative characteristic is achieved if financial information is published as soon as possible after the financial year?

• Relevance

• Verifiability

• Timeliness

• Period Assumption

What are accounting standards?

• Detailed documents specifying how certain transactions and events need to be treated in financial statements, such as inventory or financial statements

  
  

• Detailed documents specifying how uncertain transactions and events don't need to be treated in financial statements, such as inventory or financial statements

  
  

• Undetailed documents unspecifying how certain transactions and events need to be treated in civil statements, such as inventory or financial surveys.

• Undetailed documents unspecifying how certain transactions and events need to be treated in criminal statements, such as inventory or financial statements

  
  

What is the statement of changes in equity?

• 
  Statement of Changes in Equity is a financial statement that outlines the differences in equity ownership of a company over a general period. Its purpose is to provide stakeholders with insight into how the company's equity position has changed over time.

• Statement of Changes in Equity is a financial statement that outlines the changes in equity ownership of a company over a specific period. Its purpose is to provide shareholders with insight into how the company's equity position has stayed the same over time.

• Statement of Changes in Equity is a financial statement that outlines the changes in equity ownership of a company over a specific period. Its purpose is to provide stakeholders with insight into how the company's equity position has changed over time.

• Statement of Changes in Equity is a financial statement that outlines the changes in equity division of a company over a specific period. Its purpose is to provide stakeholders with no insight into how the company's equity position has changed over time.