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HFMA CSAF LATEST TEST REVIEW Q & S 2024
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HFMA CSAF LATEST TEST REVIEW Q & S 2024HFMA CSAF LATEST TEST REVIEW Q & S 2024HFMA CSAF LATEST TEST REVIEW Q & S 2024
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HFMACSAF
LATEST FINAL TEST REVIEW
Q&S
©2024/2025
,1. Which section of the financial statement provides information
about a company's cash flows from operating, investing, and
financing activities?
- A) Balance Sheet
- B) Income Statement
- C) Cash Flow Statement
- D) Statement of Changes in Equity
Answer: C) Cash Flow Statement
Rationale: The Cash Flow Statement specifically records cash
flows divided into operating, investing, and financing activities.
2. What is the primary purpose of the Notes to Financial
Statements?
- A) To present the financial position of a company
- B) To explain and supplement the figures in the main financial
statements
- C) To verify the accuracy of financial figures
- D) To make financial projections
Answer: B) To explain and supplement the figures in the main
financial statements
Rationale: The Notes provide additional detailed information to
help interpret the financial data in the main reports.
©2024/2025
, 3. How does the accrual basis of accounting affect the recognition
of revenue and expenses?
- A) Recognizes revenue when payment is received and expenses
when payment is made
- B) Recognizes revenue when earned and expenses when
incurred, regardless of cash flow
- C) Recognizes revenue and expenses when the financial
statements are prepared
- D) Recognizes revenue and expenses when cash transactions
occur
Answer: B) Recognizes revenue when earned and expenses
when incurred, regardless of cash flow
Rationale: Accrual accounting matches revenue and expenses to
the period in which they are incurred, not when cash changes
hands.
4. Which profitability indicator is calculated by dividing net
income by shareholders' equity?
- A) Return on Investment (ROI)
- B) Return on Assets (ROA)
- C) Return on Equity (ROE)
- D) Gross Profit Margin
Answer: C) Return on Equity (ROE)
©2024/2025
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