FA chapter 4 quick check

Chairman’s letters are part of a financial statement

Corporate annual reports are part of a financial statement.

Management discussions and analysis are part of notes to the accounts.

Financial statements are part of corporate annual reports.

Corporate information, other statements and disclosures, analysis and commentaries, and financial statements

Financial statements, analysis and commentaries, other statements and disclosures, and corporate information

Corporate information, analysis and commentaries, other statements and disclosures, and financial statements

. Financial statements, other statement and disclosures, analysis and commentaries, and corporate information

Management analysis and discussions

Chairman’s message/letter to shareholders

Auditor’s report on the company’s financial position and performance

Segment performance

Auditor

. Management

Chief Financial Officer (CFO) and the accounting staf

Chairman of the Board

The amount in question had the potential to result in a different decision had it been known to financial statement users.

The amount in question is greater than 10% of total assets

The amount in question is greater than 10% of revenue

The amount in question would have resulted in a different decision had it been known to financial statement users.

Provisions

Cash and cash equivalents

Accumulated depreciation

. Intangible assets

A statement of financial position contains information about how components of equity change during a period

An entity is not allowed to aggregate its revenue into one single line on the Income Statement

Entities must present their statement of comprehensive income, followed by the statement of financial position, statement of changes in equity, and, lastly, statement of cash flows.

Other comprehensive income items may turn a “loss” on the Income Statement into a “profit” on the statement of comprehensive income.

$25,000

. $37,000

. $47,000

. $97,000

. Additional share issuance during the period

Payment of dividend during the period

Increase in the entity’s share price during the year

Total comprehensive income

They are part of a complete set of financial statements

They are used to explain how the company has performed during the financial year.

. They provide a breakdown of all the numbers that appear on financial statements.

The more important numbers are shown on the financial statements and the less important ones are shown in the notes to the financial statements.