The EU is faced with so many problems that______.
A.it has more or less lost faith in markets
B.even its supporters begin to feel concerned
C.some of its member countries plan to abandon euro
D.it intends to deny the possibility of devaluation
(2)
A.The objective of financial reporting is to provide information useful for making investment and lending decisions.
B.The financial reporting is useless.
C.The financial reporting can't help people to decide whether they invest on something or not.
D.The financial reporting has no objectives.
W: First, financial statements are general-purpose statements. Secondly, the relationships between amounts on successive financial statements are not obvious without analysis. And thirdly, users of financial statements may be interested in seeing how well a company is performing.
Q: What are they talking about?
(17)
A.The methods of financial statements.
B.The necessity of careful analysis of financial statements
C.The relationship among financial statements.
D.The purpose of financial statements.
(b) Identify and explain the financial statement risks to be taken into account in planning the final audit.
(12 marks)
(b) Describe the potential benefits for Hugh Co in choosing to have a financial statement audit. (4 marks)
(b) Discuss the relative costs to the preparer and benefits to the users of financial statements of increased
disclosure of information in financial statements. (14 marks)
Quality of discussion and reasoning. (2 marks)
A.economical
B.economic
C.political
D.financial
(6)
A.The financial reporting is to provide information for the investors and lenders only.
B.The main aim of financial reporting is to offer information useful for decision-making.
C.Investment and lending decisions can be made from the financial reporting.
D.Investment and lending decisions can not be made from the financial reporting.
2 (a) Discuss the nature of the financial objectives that may be set in a not-for-profit organisation such as a charity
or a hospital. (8 marks)
(b) (i) Discuss the relationship between the concepts of ‘business risk’ and ‘financial statement risk’; and
(4 marks)