1. The International Accounting Standards Board Framework for the Preparation and Presentation of Financial Statements identifies...

 

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1. The International Accounting Standards Board Framework for the Preparation and Presentation of Financial Statements identifies seven groups whose common information needs should be met by financial statements. Which one of the following is not included in this list? (a) Investors.. (b) Lenders. (c) Management. (d) General Public. 2. Which of the following is not included as a key characteristic of useful information in the International Accounting Standards Board's Framework? (a) Accuracy. (b) Relevance. (c) Reliability. (d) Understand ability. 3. The monetary measurement convention states that "only items capable of being measured in monetary terms are reflected in financial statements". This means, for example, that the skills of the labour force are not included. Which of the following do you think might be included as an asset on a business's statement of financial position? (a) A chief executive who has a three year contract. (b) A university lecturer on a three year contract. (c) A television star with a three year contract to appear in Coronation Street. (d) A professional footballer signed at a considerable fee on a three year contract 4. Smith Ltd has just completed its accounting records. From the following list of balances, calculate the missing figure of the company's share capital. Cash on hand Amounts owing to suppliers Amounts owing from customers Bank overdraft Inventory Loan repayable over 10 years Furniture and fittings Land and buildings Reserves of retained profit (a) £34,400 (b) £52,000 (c) £57,600 £70,000 £400 £20,000 £15,600 £12,000 £32,000 £20,000 £16,000 £50,000 £10,000 1. The International Accounting Standards Board Framework for the Preparation and Presentation of Financial Statements identifies seven groups whose common information needs should be met by financial statements. Which one of the following is not included in this list? (a) Investors.. (b) Lenders. (c) Management. (d) General Public. 2. Which of the following is not included as a key characteristic of useful information in the International Accounting Standards Board's Framework? (a) Accuracy. (b) Relevance. (c) Reliability. (d) Understand ability. 3. The monetary measurement convention states that "only items capable of being measured in monetary terms are reflected in financial statements". This means, for example, that the skills of the labour force are not included. Which of the following do you think might be included as an asset on a business's statement of financial position? (a) A chief executive who has a three year contract. (b) A university lecturer on a three year contract. (c) A television star with a three year contract to appear in Coronation Street. (d) A professional footballer signed at a considerable fee on a three year contract 4. Smith Ltd has just completed its accounting records. From the following list of balances, calculate the missing figure of the company's share capital. Cash on hand Amounts owing to suppliers Amounts owing from customers Bank overdraft Inventory Loan repayable over 10 years Furniture and fittings Land and buildings Reserves of retained profit (a) £34,400 (b) £52,000 (c) £57,600 £70,000 £400 £20,000 £15,600 £12,000 £32,000 £20,000 £16,000 £50,000 £10,000

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1 The users of financial statements reports include investors lenders and management among others Th... View the full answer