FAR QUIZ 1 UPDATED Questions and
CORRECT Answers
Financial Reporting - CORRECT ANSWER- Is a vital part of corporate governance.
Financial Reporting - CORRECT ANSWER- It refers to standard practices to give
stakeholders an accurate depiction of a company's finances, including their revenues,
...
FAR QUIZ 1 UPDATED Questions and
CORRECT Answers
Financial Reporting - CORRECT ANSWER✔✔- Is a vital part of corporate governance.
Financial Reporting - CORRECT ANSWER✔✔- It refers to standard practices to give
stakeholders an accurate depiction of a company's finances, including their revenues,
expenses, profits, capital, and cash flow, as formal records that provide in-depth insights into
financial information.
Financial Reporting - CORRECT ANSWER✔✔- It involes the disclosure of financial
information to management and the public about how the company is performing over a
specific period of time.
Financial Reports - CORRECT ANSWER✔✔- Are usually issued on a quarterly and annual
basis. It is included in a public company's annual report.
Financial Statements - CORRECT ANSWER✔✔- It provides financial information that
investors, creditors and analysts use to evaluate a company's financial performance.
Financial Statements - CORRECT ANSWER✔✔- It is required by law or by accounting
standards.
Financial Statements - CORRECT ANSWER✔✔- They are important tools for senior
managers to communicate past successes as well as future expectations.
Cash Flow Statement - CORRECT ANSWER✔✔- Shows the exchange of cash between a
company and the outside world during a period, and so investors can know if the company
has enough cash to pay for expenses and asset purchases.
Statement of Shareholders' Equity - CORRECT ANSWER✔✔- It shows the changes in
various equity components, including retained earnings, during a period.
, Improved Debt Management, Trend Identification, Real-time Tracking, Liabilities, Progress
and Compliance - CORRECT ANSWER✔✔- What are the benefits of Financial reporting?
Balance sheet - CORRECT ANSWER✔✔- Displays the company's assets, liabilities, and
shareholders' equity.
Balance sheet - CORRECT ANSWER✔✔- Shows the financial position of a business.
Balance sheet - CORRECT ANSWER✔✔- Expressed as a "snapshot" or financial picture of
the company at a specified point in time
Current Assets - CORRECT ANSWER✔✔- Can be easily turned into cash, because they
have a lifespan of 12 months or less.
Cash equivalents - CORRECT ANSWER✔✔- Are extremely safe assets, like Treasury Bills,
that can be easily transformed into cash.
Property Plant & Equipment (PPE) - CORRECT ANSWER✔✔- Is often the largest line item
on a firm's balance sheet. Considering that many companies make huge investments in things
like factories, computer equipment and machinery.
Intangible assets - CORRECT ANSWER✔✔- Is something without a physical substance.
Current liabilities - CORRECT ANSWER✔✔- Are debts that must be paid within 12
months.
Long-term debt - CORRECT ANSWER✔✔- Debts that are due in one year or more.
Shareholder equity - CORRECT ANSWER✔✔- Represents the portion of the company that
belongs to its owners.
Cash, marketable securities, accounts receivable, prepaid expenses, inventory - CORRECT
ANSWER✔✔- What are the current assets? (Enumerate)
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