Q1- Explain the uses and limitations of a statement of financial position (3 Marks).
Q2- Explain the pronouncements issued by IASB. (3Marks).
Q3. From the information given, prepare a statement of retained earnings. . (4Marks).
ABC corporation had an initial investment of SAR50,000 cash and other information was as follows:
Accounts payable    SAR12,000    Office furnishings    SAR40,000
Accounts receivable    23,000    Dividends    6,000
Cash    17,200    Rent expense    3,600
Fees earned    30,000    Salaries expense    6,200
Notes payable    4,250    Telephone expense    250

Q4. From the following information of XYZ Company, prepare a multi-step income statement For the Year Ended December 31, 2021 (5 Marks).

Sales                                $137,460
Sales Returns          $2,060
Sales Discounts           $5,190
Cost of Goods Sold     $62,990
Freight-Out                   $6,150
Advertising Expense    $5,790
Sales Commissions Expense    $3,470
Office Salaries Expense    $18,510
Office Rent Expense    $14,000
Office Supplies Expense    $5,330
Gains on Sale Equipment    $2,430
Loss on Sales of Investments    $1,640
Interest Expense