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QUESTION 4-12 Multiple Choice (Conceptual Framework)
QUESTION 4-12 Multiple Choice (Conceptual Framework)
QUESTION 4-12 Multiple Choice (Conceptual Framework)
1. What is the general objectives of financial statements?
a. To provide information about economic resources of an entity, claims against the entity
and changes in the economic resources and claims.
b. To assess future cash flows to the entity.
c. To assess management stewardship.
d. To satisfy the information needs of primary users.
2. A reporting entity is
a. Necessarily a legal entity.
b. Necessarily an economic entity.
c. An entity that is required or chooses to prepare financial statements.
d. A regulatory government authority.
3. A reporting entity
a. Can be a single entity.
b. Can be a portion of single entity.
c. Can compromise more than one entity.
d. All of these can be considered as a reporting entity.
4. If the reporting entity comprises both the parent and its subsidiaries, the financial statements are
referred to as,
a. Consolidated Financial Statements
b. Unconsolidated Financial Statements
c. Combined Financial Statements
d. Separate Financial Statements