FAC1601 FINANCIAL ACCOUNTING
REPORTING 2026 ASSESSMENT PAPER
SOLVED QUESTIONS MASTER FILE
◉ What activities does the statement of cash flows report?
Answer: It reports cash collected and paid out in operating,
investing, and financing activities.
◉ What was the cash from operations for McDonald's in 2012?
Answer: $6,966 million.
◉ What do lenders seek from financial statements?
Answer: Information to evaluate the borrower's ability to repay
loans.
◉ What do investors want from financial statements?
Answer: Information to estimate future cash flows and potential
dividends.
◉ Why is the statement of cash flows considered objective?
Answer: It involves a minimum of accounting estimates and
judgments.
,◉ What is the role of management in using financial statements?
Answer: Managers use financial statements to assess company
performance and make decisions.
◉ What is the significance of the equality of assets, liabilities, and
equity in a balance sheet?
Answer: It reflects the accounting equation: Assets = Liabilities +
Equity.
◉ What type of information do banks require for loan evaluations?
Answer: A balance sheet, income statement, and statement of cash
flows.
◉ What is the purpose of managerial accounting information?
Answer: To provide detailed insights for internal management
decision-making.
◉ What was the total liabilities reported by McDonald's in 2012?
Answer: $20,093 million.
◉ What does owners' equity represent in a balance sheet?
Answer: The total amount invested in the company by its owners.
, ◉ What are the three categories of activities in the statement of cash
flows?
Answer: Operating, investing, and financing activities.
◉ What is the total expenses reported by McDonald's in 2012?
Answer: $22,102 million.
◉ What does the term 'cash used for investing activities' refer to?
Answer: Cash spent on purchasing property and equipment.
◉ How do financial statements assist in assessing a company's
future performance?
Answer: They provide insights into past performance and current
financial health.
◉ What is the significance of McDonald's brand value not being
listed on the balance sheet?
Answer: It indicates that intangible assets may not be reflected in
financial statements.
◉ What type of financial information do investors in smaller
companies often lack?
REPORTING 2026 ASSESSMENT PAPER
SOLVED QUESTIONS MASTER FILE
◉ What activities does the statement of cash flows report?
Answer: It reports cash collected and paid out in operating,
investing, and financing activities.
◉ What was the cash from operations for McDonald's in 2012?
Answer: $6,966 million.
◉ What do lenders seek from financial statements?
Answer: Information to evaluate the borrower's ability to repay
loans.
◉ What do investors want from financial statements?
Answer: Information to estimate future cash flows and potential
dividends.
◉ Why is the statement of cash flows considered objective?
Answer: It involves a minimum of accounting estimates and
judgments.
,◉ What is the role of management in using financial statements?
Answer: Managers use financial statements to assess company
performance and make decisions.
◉ What is the significance of the equality of assets, liabilities, and
equity in a balance sheet?
Answer: It reflects the accounting equation: Assets = Liabilities +
Equity.
◉ What type of information do banks require for loan evaluations?
Answer: A balance sheet, income statement, and statement of cash
flows.
◉ What is the purpose of managerial accounting information?
Answer: To provide detailed insights for internal management
decision-making.
◉ What was the total liabilities reported by McDonald's in 2012?
Answer: $20,093 million.
◉ What does owners' equity represent in a balance sheet?
Answer: The total amount invested in the company by its owners.
, ◉ What are the three categories of activities in the statement of cash
flows?
Answer: Operating, investing, and financing activities.
◉ What is the total expenses reported by McDonald's in 2012?
Answer: $22,102 million.
◉ What does the term 'cash used for investing activities' refer to?
Answer: Cash spent on purchasing property and equipment.
◉ How do financial statements assist in assessing a company's
future performance?
Answer: They provide insights into past performance and current
financial health.
◉ What is the significance of McDonald's brand value not being
listed on the balance sheet?
Answer: It indicates that intangible assets may not be reflected in
financial statements.
◉ What type of financial information do investors in smaller
companies often lack?
