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Select for each question only ONE alternative that you consider to be correct and numberit correctly, e.g. 1.D 1. Financial Accounting is: A. The systematic recording of the transactions B. An action where money is paid, and in return an item or services that the buyer's needs are obtained C. The orderly and systematic identification and recording of the monetary values of financial transactions of an individual or business entity, and the reporting of the results of these transactions D. A process involving only the calculation of the profit made by the entity E. A process involving the selecting of those events that are evidence of an economic activity irrelevant to the particular entity 2. Government uses the accounting information contained in the financial statement to: A Assess the risk and return of an investment in the entity B. Assess the ability of an entity to pay amounts owing C. Assess the ability of an entity to continue as a going concern D. Regulate the activities of the entity E Plan and determine future actions to be taken 3. The aim of International Final Reporting Standard is to make financialstatements: A. Consistent, transparent and competent across the world. B. Coherent, transparent and comparable across the globe. C. Cardinal, transparent, and comparable across the world. D. Conditional, transparent and compactable across the globe. E. Regulated, assessed and owned across the globe. 4. Which of the following variation of the accounting equation is incorrect? A Assets = Equity + Liability B. Liabilities = Assets - Equity C. Assets = Liabilities + Equity D. Equity = Assets + Liabilities E. Equity = Assets - Liabilities 5. The branch of accounting that focuses on the preparation and presentation of financial statements primarily to external users. A. Financial accounting B. Management accounting C. External auditing D. Tax accounting E. Bookkeeping B 6. Accounting principles are: A. The required social justice, solidarity and conciliation that companies are required to follow when preparing financial information The required shape, space and volume that companies are required to follow when prepanng financial information The required rules and guidelines that companies are required to follow when preparing financial information The right to insure arising out of a financial relationship, between the insured to the insured and legally recognised. E. Cohesion, that is, the smooth movement or flow between sentences and Paragraphs D 7. The following statements describe the financial year: 1. It consists of 12 consecutive months 2. It is the period for which an entity calculates its profit. 3. It is necessary that it coincide with the calendar year. 4. It is also called the accounting period. Which one of the following groups correctly reflects all the statements that are true? A. 1, 2, 3 B. 1, 2, 4 C 1,3,4 D. 2, 3, 4 E. 2, 3, 4 8. The formula to calculate Net Profit Margin is: A Net Profit Margin = Revenue - Cost - Revenue B. Net Profit Margin = Cost - Revenue - Cost C. Net Profit Margin = Revenue - Cost Revenue D. Net Profit Margin = Cost - Revenue x Cost E. Net Profit Margin = Revenue - Revenue + Cost Activate 9. Formula for cost of sale is: A Closing inventory - Purchases - Carriage cost - Purchases returns + Settlement discount granted - closing inventory. B. Opening inventory+ Purchases + Carriage costs - purchases returns - settlement discount received - closing inventory. B. Closing inventory - Purchases + Carriage cost - Purchases returns + Settlement discount granted - closing inventory C. Opening inventory + Purchases + Carriage cost Purchases returns - Seitlement discount granted - closing inventory. D. Closing inventory + Purchases + Carriage cost + Purchases returns + Settlement discount received closing inventory 10. To determine if the measured entity is classified correctly, the Verification Agency shall obtain Financial Statements and agree the amount recognised as revenue to the threshold set by the codes. Which Financial Statement will be most relevant in this case? A . C D Statement of Cash Flow Statement of Financial Position Statement of Changes in Equity Statement of Profit or Loss and Other Comprehensive Income Notes on the financial statement E. Activate Gint Setti

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