Question 1

Items of income and expense can be disclosed as extraordinary items in the notes to the financial statements.

Accepted Answer

A) True 
 B)False  False

Question 2

Auditor remuneration only includes amount paid or payable to the auditor in relation to an audit or review of the entity's financial statements.

Accepted Answer

A) True 
 B)False  False

Question 3

Which of the following items are included in a statement of changes in equity? I Opening and closing balances.
II Total comprehensive income for the period.
III Gains or losses not recognised in the statement of profit or loss and other comprehensive income.
IV New share issues.
V Dividends paid.

Accepted Answer

A)  I, II & III only 
B)  II, III and IV only 
C)  I, IV and V only 
D)  I, II, IV and V only 
A)  I, II & III only 
B)  II, III and IV only 
C)  I, IV and V only 
D)  I, II, IV and V only D

Question 4

Which of the following is not required to be displayed prominently in the financial statements?

Accepted Answer

A)  Whether the financial statements cover the individual entity or a group of entities. 
B)  The names of the company's major competitors. 
C)  The level of rounding used in the presentation of amounts in the financial statements. 
D)  The currency used in the financial statements. 
A)  Whether the financial statements cover the individual entity or a group of entities. 
B)  The names of the company's major competitors. 
C)  The level of rounding used in the presentation of amounts in the financial statements. 
D)  The currency used in the financial statements.

Question 5

Current assets are those assets that are realised or consumed within an entity's operating cycle.

Accepted Answer

A) True 
 B)False

Question 6

Profit or loss is the total of income less expenses:

Accepted Answer

A)  including the items of other comprehensive income. 
B)  excluding abnormal items. 
C)  excluding the items of other comprehensive income. 
D)  excluding extraordinary items. 
A)  including the items of other comprehensive income. 
B)  excluding abnormal items. 
C)  excluding the items of other comprehensive income. 
D)  excluding extraordinary items.

Question 7

Which of the following is not required to be disclosed in the statement of financial position as a line item?

Accepted Answer

A)  Property, plant and equipment 
B)  Provisions 
C)  Accrued audit fees 
D)  Deferred tax liabilities 
A)  Property, plant and equipment 
B)  Provisions 
C)  Accrued audit fees 
D)  Deferred tax liabilities

Question 8

Interest and other costs incurred by an entity in connection with borrowing funds are known as:

Accepted Answer

A)  extraordinary costs. 
B)  distribution costs. 
C)  borrowing costs. 
D)  repayment costs. 
A)  extraordinary costs. 
B)  distribution costs. 
C)  borrowing costs. 
D)  repayment costs.

Question 9

A financial report must include a statement of compliance with Australian Accounting Standards.

Accepted Answer

A) True 
 B)False

Question 10

An entity must present a complete set of financial statements at least annually.

Accepted Answer

A) True 
 B)False

Question 11

AASB 101/IAS 1 Presentation of Financial Statements, requires which of the following items to be disclosed separately on the face of the statement of profit or loss and other comprehensive income? I Cost of sales
II Revenue
III Finance costs
IV Share of the profit or loss from associates
V Audit and non-audit fees
VI Total other comprehensive income
VII Profit or loss

Accepted Answer

A)  I, II, VI and VII only 
B)  I, II, III and V only 
C)  II, III, IV, VI and VII only 
D)  I, III, V and VII only 
A)  I, II, VI and VII only 
B)  I, II, III and V only 
C)  II, III, IV, VI and VII only 
D)  I, III, V and VII only

Question 12

Recording a trade receivables balance net of an allowance for doubtful debts is an example of offsetting.

Accepted Answer

A) True 
 B)False

Question 13

Which of the following items are disclosed on the face of a statement of financial position as line items?

Accepted Answer

A)  Finance costs 
B)  Cost of sales 
C)  Interest revenue 
D)  Biological assets 
A)  Finance costs 
B)  Cost of sales 
C)  Interest revenue 
D)  Biological assets

Question 14

The time between the acquisition of assets for processing and their realisation into cash or cash equivalents is known as the:

Accepted Answer

A)  acquisition cycle. 
B)  payment cycle. 
C)  operating cycle. 
D)  realisation cycle. 
A)  acquisition cycle. 
B)  payment cycle. 
C)  operating cycle. 
D)  realisation cycle.

Question 15

According to AASB 101/IAS 1 Presentation of Financial Statements, the Statement of financial position may also be referred to as the balance sheet.

Accepted Answer

A) True 
 B)False

Question 16

The definition of 'social responsibility' also refers to government agencies and departments.

Accepted Answer

A) True 
 B)False

Question 17

Classes of property, plant and equipment do not include which of the following?

Accepted Answer

A)  Office equipment 
B)  Furniture and fittings 
C)  Inventories 
D)  Land and buildings 
A)  Office equipment 
B)  Furniture and fittings 
C)  Inventories 
D)  Land and buildings

Question 18

According to AASB 101/IAS 1 Presentation of Financial Statements, there must be consistency of presentation and classification of items in the financial statements from one period to the next unless:

Accepted Answer

A)  a change in presentation or classification is required by another accounting standard. 
B)  there has been a minor change in the entity's operations. 
C)  the directors approve the change in presentation or classification. 
D)  the auditors approve the change in presentation or classification. 
A)  a change in presentation or classification is required by another accounting standard. 
B)  there has been a minor change in the entity's operations. 
C)  the directors approve the change in presentation or classification. 
D)  the auditors approve the change in presentation or classification.

Question 19

All items of income and expense that arise during a financial period must be included in profit or loss.
e.g. changes in a revaluation surplus. These items are not included in the determination of the profit or loss that arose during a financial period. Instead, the balance of equity is directly adjusted.
Learning objective 5.4

Accepted Answer

A) True 
 B)False

Question 20

Under AASB 101/IAS 1 Presentation of Financial Statements, profit or loss attributable to non-controlling interests is required to be disclosed in:

Accepted Answer

A)  an equity statement. 
B)  a statement of financial position. 
C)  a statement of profit or loss and other comprehensive income. 
D)  a statement of cash flows. 
A)  an equity statement. 
B)  a statement of financial position. 
C)  a statement of profit or loss and other comprehensive income. 
D)  a statement of cash flows.

Items of income and expense can be disclosed as extraordinary items in the notes to the financial statements.

Auditor remuneration only includes amount paid or payable to the auditor in relation to an audit or review of the entity's financial statements.

Which of the following items are included in a statement of changes in equity? I Opening and closing balances. II Total comprehensive income for the period. III Gains or losses not recognised in the statement of profit or loss and other comprehensive income. IV New share issues. V Dividends paid.

Which of the following is not required to be displayed prominently in the financial statements?

Current assets are those assets that are realised or consumed within an entity's operating cycle.

Profit or loss is the total of income less expenses:

Which of the following is not required to be disclosed in the statement of financial position as a line item?

Interest and other costs incurred by an entity in connection with borrowing funds are known as:

A financial report must include a statement of compliance with Australian Accounting Standards.

An entity must present a complete set of financial statements at least annually.

Recording a trade receivables balance net of an allowance for doubtful debts is an example of offsetting.

Which of the following items are disclosed on the face of a statement of financial position as line items?

The time between the acquisition of assets for processing and their realisation into cash or cash equivalents is known as the:

According to AASB 101/IAS 1 Presentation of Financial Statements, the Statement of financial position may also be referred to as the balance sheet.

The definition of 'social responsibility' also refers to government agencies and departments.

Classes of property, plant and equipment do not include which of the following?

According to AASB 101/IAS 1 Presentation of Financial Statements, there must be consistency of presentation and classification of items in the financial statements from one period to the next unless:

Under AASB 101/IAS 1 Presentation of Financial Statements, profit or loss attributable to non-controlling interests is required to be disclosed in:

Nature and Regulation of Companies

Financing Company Operations

Business Combinations

Disclosure: Legal Requirements and Accounting Polices

Disclosure: Statement of Cash Flows

Foreign Currency Transactions and Forward Exchange Contracts

Translation of Financial Statements Into a Presentation Currency

Consolidation: Controlled Entities

Consolidation: Wholly Owned Subsidiaries

Consolidation: Intragroup Transactions

Consolidation: Non-Controlling Interest

Consolidation: Other Issues

Associates and Joint Ventures

Joint Arrangements

Insolvency and Liquidation

Accounting for Company Income Tax

Property, Plant Equipment

Filters

Exam 5: Disclosure: Presentation of Financial Statements

Items of income and expense can be disclosed as extraordinary items in the notes to the financial statements.

Auditor remuneration only includes amount paid or payable to the auditor in relation to an audit or review of the entity's financial statements.

Which of the following items are included in a statement of changes in equity? I Opening and closing balances. II Total comprehensive income for the period. III Gains or losses not recognised in the statement of profit or loss and other comprehensive income. IV New share issues. V Dividends paid.

Which of the following is not required to be displayed prominently in the financial statements?

Current assets are those assets that are realised or consumed within an entity's operating cycle.

Profit or loss is the total of income less expenses:

Which of the following is not required to be disclosed in the statement of financial position as a line item?

Interest and other costs incurred by an entity in connection with borrowing funds are known as:

A financial report must include a statement of compliance with Australian Accounting Standards.

An entity must present a complete set of financial statements at least annually.

Recording a trade receivables balance net of an allowance for doubtful debts is an example of offsetting.

Which of the following items are disclosed on the face of a statement of financial position as line items?

The time between the acquisition of assets for processing and their realisation into cash or cash equivalents is known as the:

According to AASB 101/IAS 1 Presentation of Financial Statements, the Statement of financial position may also be referred to as the balance sheet.

The definition of 'social responsibility' also refers to government agencies and departments.

Classes of property, plant and equipment do not include which of the following?

According to AASB 101/IAS 1 Presentation of Financial Statements, there must be consistency of presentation and classification of items in the financial statements from one period to the next unless:

Under AASB 101/IAS 1 Presentation of Financial Statements, profit or loss attributable to non-controlling interests is required to be disclosed in:

Nature and Regulation of Companies

Financing Company Operations

Business Combinations

Disclosure: Legal Requirements and Accounting Polices

Disclosure: Statement of Cash Flows

Foreign Currency Transactions and Forward Exchange Contracts

Translation of Financial Statements Into a Presentation Currency

Consolidation: Controlled Entities

Consolidation: Wholly Owned Subsidiaries

Consolidation: Intragroup Transactions

Consolidation: Non-Controlling Interest

Consolidation: Other Issues

Associates and Joint Ventures

Joint Arrangements

Insolvency and Liquidation

Accounting for Company Income Tax

Property, Plant Equipment

Filters