ACCA F3 2023 Exam Questions with All Correct Answers

ACCA F3 2023 Exam Questions with All Correct Answers 1 Which of the following statements is true? A The directors of a company are liable for any losses of the company B A sole trader business is owned by shareholders and operated by the proprietor C Partners are liable for losses in a partnership in proportion to their profit share ratio D A company is run by directors on behalf of its members - Answer -D A company is run by directors on behalf of its members 2 Which of the following best describes management accounts? A Management accounts are mandatory accounts which reflect the past performance of a business and are prepared in accordance with strict accounting requirements B Management accounts are normally prepared monthly on a rolling basis and include details of past performance as well as budgets and forecasts C Management accounts are required by law and include sufficient detail for managers control the business and prepare for the future D Management accounts include information computed to be relevant to managers and are generally prepared annually - Answer -B Management accounts are normally prepared monthly on a rolling basis and include details of past performance as well as budgets and forecasts 3 Which of the following best explains why employees are interested in the financial statements of their employer? A To compare the business with its competitors in order to decide whether to seek employment with one of those competitors B To assess the effect of the business on the local economy, community and environment C To assess whether the business will continue into the foreseeable future D To assess the profitability of the business in order to decide whether to invest in it - Answer -C To assess whether the business will continue into the foreseeable future 4 Which of the following user groups require the most detailed financial information? A The management B Investors and potential investors C Government agencies - Answer -A The management 5 Which of the following statements are true? 1 Accounting can be described as the recording and summarising of transactions. 2 Financial accounting describes the production of a statement of financial position and income statement for internal use. A 1 only B 2 only - Answer -A 1 only 6 The main aim of financial accounting is to: A record all transactions in the books of account B provide management with detailed analyses of costs C present the financial results to the organisation by means of recognised statements D calculate profit - Answer -C present the financial results to the organisation by means of recognised statements 7 Which one of the following sentences does NOT explain the distinction between financial accounts and management accounts? A Financial accounts are primarily for external users and management accounts are primarily for internal users B Financial accounts are normally produced annually and management accounts are normally produced monthly C Financial accounts are more accurate than management accounts D Financial accounts are audited by an external auditor and management accounts do not normally have an external audit - Answer -C Financial accounts are more accurate than management accounts 242 The Standards Advisory Council are responsible for: (1) issuing guidance in relation to emerging issues. (2) advising the IASB on major standard -setting projects. A 1 and 2 B 1 only C 2 only D Neither 1 nor two - Answer -C 2 only 243 Which of the following assumptions underlie the Framework for the presentation and preparation of financial statements?