1) Which of the following is not a primary user of financial reporting information? a) Creditors b) Managers c) Competitors d) Investors 2) Which of the following is NOT a characteristic of a reporting entity? a) Separate legal or economic identity b) Ownership of other entities c) Ability to engage in economic activities d) Accountability for financial performance 3) Financial reporting is only concerned with historical financial information. a) TRUE b) FALSE 4) The primary purpose of the balance sheet is to: a) Present the entity’s financial performance for a specific period. b) Show the entity’s financial position at a specific point in time. c) Report the entity’s cash inflows and outflows. d) Detail the changes in equity during a period. 5) The statement of profit or loss only contains cash sales. a) TRUE b) FALSE 6) Which of the following DOES NOT is not recorded in the balance Sheet: a) General expenses b) Closing inventory c) Motor vehicle at net book value

Financial Reporting

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