Financial statements for public companies such as Qantas Ltd are prepared as frequently as demanded by shareholders. Question 4 Answer True False

financial statements is composed of?

The Conceptual Framework provides both fundamental and enhancing qualitative characteristics to guide the preparation of financial statements. Discuss the following independent situations and identify which enhancing qualitative characteristic has been affected, and discuss how it might impact the two fundamental characteristics. (a) The company generally applies the same measurement rules and principles to prepare its financial statements, although every few years it has been known to change its approach to recording certain items. (b) The financial statements provide a fairly accurate summary of the transactions and events affecting the company each year, though it common to find some errors and omissions. (c) The financial year of Alpha Company ends of 30 June, and it usually releases its financial statements to shareholders around December that year. (d) The layout and wording of Alpha Company’s Annual Report change each year depending on who prepares it.

Who is responsible for preparing a company’s financial statements?1 pointThe audit committee of the Board of DirectorsThe Financial Accounting Standards BoardThe company's external auditorThe company's tax departmentCompany management

What is the underlying assumption when using a set of financial statements?

Link Between Financial StatementsThe following information is available for a company.  Income Statement (In ₹ million)Sales revenue2Operating expenses0.45 Operating profit 1.55 Interest expenses 0.22Taxes 0.28Net profit? Cash Flow Statement (In ₹ million)Cash in the beginning 0.75 Cash generated during the year?Cash at the end 1.52   Balance SheetAssetAmount (in ₹ million)Liability and equityAmount (in ₹ million)Fixed assets6Share capital5Cash? Profit for the year?Inventory2.53Owner’s equity?    Long-term debt4 Total assets?Total liabilities and equity ? What is the total assets and owner’s equity? Total assets: ₹ 10.05 million; owner’s equity: ₹ 6.05 millionTotal assets: ₹ 15.52 million; owner’s equity: ₹ 6.52 millionTotal assets: ₹ 9.05 million; owner’s equity: ₹ 5.05 million