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0804 FSA (CFA560) - Question Paper Financial Statement...

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1 Question Paper Financial Statement Analysis (CFA560): April 2008 Answer all 70 questions. Marks are indicated against each question. Total Marks : 100 1. Which of the following qualitative characteristics is the ability to help users see similarities and differences to evaluate relative financial position and performance of companies? (a) Verifiability (b) Consistency (c) Relevance (d) Neutrality (e) Comparability. (1 mark) <Answer> 2. Which of the following is equal to the residual interest that remains in the assets after deducting an entity’s liabilities? <Answer> 3. Which of the following statements’ preparation is primarily governed by the matching principle? <Answer> 4. While translating the financial statements of foreign branches of Indian companies, all revenue items other than opening and closing inventories and depreciation must be translated at <Answer> 5. Expense manipulation can be done by (a) Vendor financing (b) Understating liabilities (c) Trade loading or channel stuffing (d) Not recognizing rebates or discounts (e) Overstatement of value of accounts receivables. (1 mark) <Answer> 6. Timing differences are considered temporary because (a) They are based on different tax rates (b) They affect book income in different years (c) They eventually reverse (d) The costs eventually expire (e) They result in deferred tax asset/liability. (1 mark) <Answer> 7. As per AS-11, the need for foreign currency translation arises <Answer>
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