Chapter 1

FINANCIAL STATEMENTS
1-1
1. A complete set of financial statements includes all of the following, except
a. Statement of financial position
b. Statement of changes in equity
c. Notes to financial statements
d. Environmental reports and value added statements
2. What is the objective of financial statements?
To provide information about the financial position, financial performance and changes in
financial position useful to a wide range of users.
b. To prepare a statement of financial position and statement of comprehensive income
c. To present relevant, reliable, comparable and understandable information
d. To prepare financial statements in accordance with the applicable standards.
3. The primary responsibility for the preparation of the financial statements is reposed in
Management of the entity
Internal Auditor
External auditor
Controller
4. The major financial statements include all, except
a. SFP
b. IS
c. SCF
d. Statement of retained earnings
5. The major financial statements include all, except
a. SFP
b. Statement of changes in financial position
c. SCI
d. SCE