Exam 6: Statement of Profit or Loss and Statement of Changes in Equity

If an item meets the definition of an expense,to be reported in the income statement it must also meet the recognition criteria of being probable that the decrease in economic benefits has arisen and that the amount is able to be reliably _______________.

Which of the following is not disclosed in the statement of comprehensive income?

An owner contributes $50 000 to expand the business.This transaction would:

Which of the following statements concerning a company's income tax expense is correct?

Managers’ use of accounting discretion allowable under accounting policy choices and estimates to portray a desired level of profit in a particular reporting period is referred to as ___________________ management.

Which of the following are included in a statement of changes in equity?

An entity pays wages on a fortnightly basis and the next payroll date is 8 September.If wages expense is not accrued at 31 August the effect on the financial statements for August will be:

A transaction recording accrued income will:

Accrued income is recognised _________ the cash has been received.

An entity's profit or loss is measured over a _________ period of time.

Gains from the disposal of non-current assets are recognised as ____________ income.

An expense is considered to be __________________ if its non-disclosure could affect decisions made by the users of the statement of profit or loss.

The relevant profit measure that isolates the returns associated with investment decisions is ______________ ______________ ______________ and ______________.

Equipment is purchased for $50 000.It is to be depreciated on a diminishing balance basis using a rate of 10%.How much will be charged for depreciation expense for year 3 of the machine's life?

Which of the following statements relating to the presentation of the statement of profit or loss by non-reporting entities is not true?

Which of the following is an example of other comprehensive income?

Which of the following transactions will be recorded as income?

Which of the following statements is correct for an entity that has discontinued part of its operations during the financial year?

Other ______________ income represents all changes in equity other than profit or loss,and transactions associated with owners such as dividends and capital contributions.

The ______________ of _____________ depreciation method measures depreciation based on an asset's activity or output relative to the total activity or output expected.