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ACCA FA Practice & Revision Kit Practice Questions and Answers (100% Pass)
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ACCA FA Practice & Revision Kit Practice Questions and Answers (100% Pass)
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©PREP4EXAMS@2024 [REAL-EXAM-DUMPS] Saturday, August 3, 2024 7:34 AMWEST VIRGINIA UNIVERSIRTY- (WV) : 26506
ACCA FA Practice & Revision Kit Practice
Questions and Answers (100% Pass)
1.1 Who issues International Financial Reporting Standards?
A The IFRS Advisory Committee
B The stock exchange
C The International Accounting Standards Board
D The government - ✔️✔️C The role of the IASB is to develop and publish International
Financial Reporting Standards.
1.2 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
,©PREP4EXAMS@2024 [REAL-EXAM-DUMPS] Saturday, August 3, 2024 7:34 AM
WEST VIRGINIA UNIVERSIRTY- (WV) : 26506
A 1 and 2 only
B 2 and 3 only
C 2, 3 and 4 only
D 1, 2 and 3 only - ✔️✔️B A sole trader does not have any shareholders. The financial
statements are unlikely to be of interest to a financial analyst, they are more usually
interested in the financial statements of public companies.term-3
1.3 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 interested only in the statement of financial position, ie
an indication of the current state of affairs.
The objective of financial 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. - ✔️✔️(1) is false - although the
supplier needs to know the current situation, the supplier also needs to be able to
assess future prospects to ensure the entity has the ability to pay and to support an
ongoing relationship.
2
, ©PREP4EXAMS@2024 [REAL-EXAM-DUMPS] Saturday, August 3, 2024 7:34 AM
WEST VIRGINIA UNIVERSIRTY- (WV) : 26506
(2) is the IASB's Conceptual Framework description of the purpose of financial
statements, and is therefore true.
1.4 Which of the following are advantages of trading as a limited liability company?
1 Operating as a limited liability company makes raising finance easier because
additional shares can be issued to raise additional cash.
2 Operating as a limited liability company is more risky than operating as a sole trader
because the shareholders of a business are liable for all the debts of the business
whereas the sole trader is only liable for the debts up to the amount he has invested.
A 1 only
B 2 only
C Both1and2
D Neither 1 or 2 - ✔️✔️A (2) is incorrect - shareholders are only liable for the debts of the
business up to the amount they
have invested in shares, whereas sole traders are liable for all of the debts of the
business.
1.5 Which of the following best describes corporate governance?
A Corporate governance is the system of rules and regulations surrounding financial
reporting.
3
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