Question 1

The three most important financial statements are the:

Accepted Answer

A)  Profit & Loss, Balance Sheet and Statement of Changes in Equity 
B)  Statement of Financial Position, Income Statement and Statement of Cash Flows 
C)  Income Statement, Statement of Cash Flows and Explanatory Notes to the Financial Statements 
D)  Statement of Financial Position, Statement of Cash Flows and Statement of Changes in Equity 
A)  Profit & Loss, Balance Sheet and Statement of Changes in Equity 
B)  Statement of Financial Position, Income Statement and Statement of Cash Flows 
C)  Income Statement, Statement of Cash Flows and Explanatory Notes to the Financial Statements 
D)  Statement of Financial Position, Statement of Cash Flows and Statement of Changes in Equity

Question 2

ABC buys a smaller company XYZ for a negotiated price of £1 million. XYZs assets are valued at £750,000. Assuming goodwill is amortized over 5 years, the value of goodwill in ABC's Statement of Financial Position at the end of the third year after acquisition will be:

Accepted Answer

A)  £400,000 
B)  £300,000 
C)  £150,000 
D)  £100,000 
A)  £400,000 
B)  £300,000 
C)  £150,000 
D)  £100,000

The three most important financial statements are the:

ABC buys a smaller company XYZ for a negotiated price of £1 million. XYZs assets are valued at £750,000. Assuming goodwill is amortized over 5 years, the value of goodwill in ABC's Statement of Financial Position at the end of the third year after acquisition will be:

Introduction to Accounting

Accounting and Its Relationship to Shareholder Value and Corporate Governance

Recording Financial Transactions and the Principles of Accounting

Management Control, Accounting, and Its Rationaleconomic Assumptions

Interpretive and Critical Perspectives on Accounting and Decision Making

Interpreting Financial Statements

Accounting for Inventory

Accounting and Information Systems

Marketing Decisions

Introduction to Accounting

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Exam 6: Constructing Financial Statements: IFRS and the Framework of Accounting

The three most important financial statements are the:

ABC buys a smaller company XYZ for a negotiated price of £1 million. XYZs assets are valued at £750,000. Assuming goodwill is amortized over 5 years, the value of goodwill in ABC's Statement of Financial Position at the end of the third year after acquisition will be:

Introduction to Accounting

Accounting and Its Relationship to Shareholder Value and Corporate Governance

Recording Financial Transactions and the Principles of Accounting

Management Control, Accounting, and Its Rationaleconomic Assumptions

Interpretive and Critical Perspectives on Accounting and Decision Making

Interpreting Financial Statements

Accounting for Inventory

Accounting and Information Systems

Marketing Decisions

Introduction to Accounting

Filters