Intermediate Accounting 3 (Interim)

1. A complete set of financial statements includes all of the following components, except
- D. Environmental reports and value added statements
2. What is the objective of financial statements?
- A. To provide information about the financial position, financial performance and changes in financial
position useful to wide range of users
3. The primary responsibility for the preparation of the financial statements is reposed in
- A. Management of the entity
4. The major financial statements include all, except
- D. Statement of retained earnings
5. The major financial statements include all, except
- C. Statement of comprehensive income
6. Which statement is incorrect concerning fair presentation of financial statements?
- D. An entity whose financial statements comply with PFRS shall not make an explicit and unreserved
statement of such compliance in notes
7. Which of the following cannot be considered fair presentation of financial statements?

m
- B. To provide additional disclosures when compliance with specific PFRS is insufficient to understand the

er as
financial position and financial performance.

co
eH w
8. Which statement indicates a going concern?
- D. None of these would indicate going concern

o.
9. An entity is permitted to depart from a particular standard if all of the following conditions are satisfied, except
rs e
- D. When the Conceptual Framework for Financial Reporting prohibits such a departure
ou urc
10. The effects of transactions and other events on economic resources and claims are depicted in the periods in
which those effects occur even if the resulting cash receipts and payments occur in a different period.
o

- A. accrual accounting
aC s

11. Financial statements must be prepared at least

- A. Anually
12. Technically, offsetting in financial statements is accomplished when
- C. The total liabilities are deducted from total assets
ed d

13. The presentation and classification of items statements shall be retained from one accounting period to the next.
- A. Consistency of presentation
ar stu

14. A third statement of financial position as at beginning of the earliest comparative period presented is required
- D. Under all of these circumstances
15. Which statement in relation to financial statements is incorrect?
is

- A. General purpose financial statements do not and cannot provide all of the information that primary users
Th

need.
16. Items of dissimilar nature or function
- A. Must always be presented separately.
sh

17. Materiality depends on

19. When the classification of items in the financial statements is changed, the entity
- C. Must reclassify the comparative amounts unless it is impracticable to do so.
20. An entity shall present
This study source was downloaded by 100000793310252 from CourseHero.com on 10-08-2021 02:00:19 GMT -05:00

https://www.coursehero.com/file/68950292/Interim-1docx/
 - D. Each financial statement with equal prominence.
21. The overall objective of financial reporting is to provide in
- A. That is useful for decision making
22. The objective of financial reporting is based on
- C. Generally accepted accounting principles
23. Which is an objective of financial reporting?
- B. To provide information that is useful to management.
24. Which is an object of financial reporting?
- D. To provide information in the specific users for them to make a sound decisions
25. An objective of financial reporting is to provide
- C. Information useful in assessing cash flow prospects.
26. The term comprehensive income
-D. is synonymous with the term net income
27. All of the following components of other comprehensive income are reclassified to profit or loss, except
-C. The effective portion of gain or loss on hedging instrument in a cash flow hedge.
28. Which component of other comprehensive income should be reclassified to retained earnings?
- D. All of these components of OCI should be reclassified to retained earnings

m
er as
29. Why is reclassification adjustment used when reporting other comprehensive income?

co
- B. To avoid double counting of items

eH w
30. The components of OCI include all, except
- D. Dividend paid to shareholders

o.
31. Which is not a component of OCI?
rs e
ou urc
- D. Change in revaluation surplus
32. Which is not a component of OCI?
- A. Remeasurement of defined benefit plan
o

33. Which of the following options for displaying other comprehensive income is preferred?
aC s

- A. A continuation from net income in the income statement or a separate statement that begins with net
vi y re

income
34. How should exchange gain or loss resulting from foreign currency transaction be accounted for?
- B. Included as component of other comprehensive income for the period in which the rate changes
ed d

35. Unusual and infrequent gain should be presented as

- C. Extraordinary item
is
Th
sh

This study source was downloaded by 100000793310252 from CourseHero.com on 10-08-2021 02:00:19 GMT -05:00

https://www.coursehero.com/file/68950292/Interim-1docx/
Powered by TCPDF (www.tcpdf.org)