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Problem 1: Which of the following statement(s) is/are true?
Select one:
a. General purpose financial reports are intended to meet the information needs common to users who are able to command the preparation of reports.
b. General purpose financial reports should be prepared by all reporting entities.
c. General purpose financial reports should be prepared by all reporting entities and general-purpose financial reports are reports that comply with statements of accounting concepts and accounting standards.
d. General purpose financial reports are reports that comply with statements of accounting concepts and accounting standards.
Problem 2: According to AASB110, which of the following is an example of adjusting event?
a. None of the event
b. Business merger after the authorisation date.
c. Loss of major stock before the official sign off on the financial statements but after the end of the financial year.
d. Discovery of fraud or errors showing that the financial statements are incorrect.
Financial Statement Analysis and Preparation
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T he focus of the report is to determine the extent to which you are comfortable relying on the financial statements as presented by management .
Computation of Free Cash Flow
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