Question

Choose the correct answer.

1. Which of the following is not a component of a Statement of Financial Position?

1. Non-current assets
2. Cash
3. Cost of goods sold
4. Retained earnings.

2. Under IFRS, how often should financial statements be prepared?

1. At least annually
2. No more than annually
3. Monthly
4. As often as the company requires.

3. Which sections of an annual report do IFRSs apply to?

A- Management report

B- Financial statements

C- Auditors report

D- Entire annual report

4. When a company issues shares for more than their nominal amount, the excess is called…

A- Share excess

B- Share premium

C- Share markup

D- None of the above.

Answer 1

1. Statement of Financial Position refers to Balance Sheet

Among the option given - Non-Current Assets, Cash and Retained earnings are present in the Balance Sheet as these components represents the value as of a date.

COGS forms part of the profit and loss statement over a period of time.

Answer: C. Cost of Goods Sold

2. Under IFRS, how often should financial statements be prepared?

IFRS requires that complete set of financial statements are prepared annually and should include comparative amount with the previous year

Answer: A - at least annually

3. Which sections of an annual report do IFRSs apply to

IFRS applies to all general purpose financial statements. Complete set of financial statements include balance sheet, p&l, cash flow statement, statement of changes in equity, notes comprising of significant accounting policies amongst other

Answer: B - Financial Statements

4. When a company issues shares for more than their nominal amount, the excess is called

Amount received exceeding the face value is called share premium.

Suppose the face value is $10 and share gets listed at $100 then the share premium would be $90

Answer : B - Share Premium