Question 1

An income statement prepared for external use would normally contain more/fewer)specific expenses and income items than one prepared for internal use.

Accepted Answer

fewer

Question 2

According to AASB 1039,in order to provide clear information to shareholders the concise financial report must disclose how many of the following?
.Details of any events occurring after the end of the reporting period
.That the report is an extract only from the full financial report
.The amount of dividends paid and dividends proposed
.Graphs of profits for the last five years

Accepted Answer

A) 1 
B) 2 
C) 3 
D) 4 
A) 1 
B) 2 
C) 3 
D) 4 C

Question 3

Under the Corporations Act an overriding requirement is that the financial statements must present a t_________ and f________ view of performance and financial position.

Accepted Answer

true fair true and fair.

Question 4

Under IAS 1/AASB 101 the statement of changes in equity must disclose how many of the following?
.Total comprehensive income for the period.
.A reconciliation between carrying amount at the beginning and end of the period for each item of equity
.Contributions by and distributions to owners,disclosed separately

Accepted Answer

A) 0 
B) 1 
C) 2 
D) 3 
A) 0 
B) 1 
C) 2 
D) 3

Question 5

It is not</u true that:

Accepted Answer

A) AASB 1039 'Concise Financial Reports' has an equivalent international standard 
B) Shareholders who receive a concise report can request a full report 
C) The concise report must comply with the accounting standards 
D) Except for concise reports prepared for listed companies each financial statement must be accompanied by some discussion and analysis. 
A) AASB 1039 'Concise Financial Reports' has an equivalent international standard 
B) Shareholders who receive a concise report can request a full report 
C) The concise report must comply with the accounting standards 
D) Except for concise reports prepared for listed companies each financial statement must be accompanied by some discussion and analysis.

Question 6

The approach contained in IAS 1/AASB 101 to the determination of a company's profit or loss is:

Accepted Answer

A) The reporting method approach 
B) The all-inclusive profit approach 
C) The operating profit approach 
D) The equity approach 
A) The reporting method approach 
B) The all-inclusive profit approach 
C) The operating profit approach 
D) The equity approach

Question 7

A summarised set of financial reports sent to a shareholder as an alternative to the full annual financial report,is called a c___________ report.

Accepted Answer

The answer of A summarised set of financial reports sent...

Question 8

The statement that is true about concise financial reports is:

Accepted Answer

A) A full report must be sent to the shareholder unless they request a concise report 
B) The company must apply to ASIC if they want the right to issue concise reports rather than full reports 
C) The company has the right to send a concise report to the shareholder unless they request a full report 
D) Concise reports do not have to include a statement of changes in equity 
A) A full report must be sent to the shareholder unless they request a concise report 
B) The company must apply to ASIC if they want the right to issue concise reports rather than full reports 
C) The company has the right to send a concise report to the shareholder unless they request a full report 
D) Concise reports do not have to include a statement of changes in equity

Question 9

How many of these statements concerning concise financial reports are true?
.There is a charge to the shareholder for requesting a full financial report but the concise report is free
.If a shareholder accepts a concise financial report they cannot also request a full report
.The financial statements in the concise report need not comply with all the accounting standards

Accepted Answer

A) 0 
B) 1 
C) 2 
D) 3 
A) 0 
B) 1 
C) 2 
D) 3

Question 10

The 'all-inclusive' profit approach to determining profit means,in principle,that all income and all e ___________ must be included in the calculation of profit.

Accepted Answer

The answer of The 'all-inclusive' profit approach to determining profit...

Question 11

Under IAS 1/AASB 101 which format is subscribed for the statement of financial position?

Accepted Answer

A) Assets - Liabilities = Equity 
B) Assets = Equity + Liabilities 
C) Equity = Assets - Liabilities 
D) No one format is prescribed 
A) Assets - Liabilities = Equity 
B) Assets = Equity + Liabilities 
C) Equity = Assets - Liabilities 
D) No one format is prescribed

Question 12

Under the Corporations Act a 'd______________ entity' must prepare a half-yearly financial report in addition to an annual report.

Accepted Answer

The answer of Under the Corporations Act a 'd______________ entity'...

Question 13

The term that is currently the most commonly preferred for owner's equity in a company balance sheet is:

Accepted Answer

A) Shareholder's equity 
B) Equity 
C) Shareholder's funds 
D) Share capital and reserves 
A) Shareholder's equity 
B) Equity 
C) Shareholder's funds 
D) Share capital and reserves

Question 14

The statement in the annual report that shows detailed movements in all equity accounts is the statement of ________ in equity.

Accepted Answer

The answer of The statement in the annual report that...

Question 15

IAS 1/AASB 101 requires an entity to adopt either a current/_______________ presentation or a liquidity presentation in the statement of financial position.

Accepted Answer

non curren

Question 16

Which of these is not an expense item that requires separate disclosure under the accounting standards in the statement of profit or loss and other comprehensive income or in the notes attached to the statement?

Accepted Answer

A) Impairment expenses of non-current assets 
B) Bad and doubtful debts 
C) Office expenses 
D) Interest paid 
A) Impairment expenses of non-current assets 
B) Bad and doubtful debts 
C) Office expenses 
D) Interest paid

Question 17

Under the Corporations Act it is not true that for the presentation of general purpose financial statements the annual financial report:

Accepted Answer

A) must include a concise report 
B) must include a set of financial statements 
C) must include a directors' report 
D) must include a directors' declaration 
A) must include a concise report 
B) must include a set of financial statements 
C) must include a directors' report 
D) must include a directors' declaration

Question 18

In the 2011 version of IAS 1/AASB 101 the recommended title for the income statement is:

Accepted Answer

A) Statement of profit and loss and other comprehensive income 
B) Profit and loss statement and other comprehensive income 
C) Statement of profit or loss and other comprehensive income 
D) Statement of financial performance 
A) Statement of profit and loss and other comprehensive income 
B) Profit and loss statement and other comprehensive income 
C) Statement of profit or loss and other comprehensive income 
D) Statement of financial performance

Question 19

If expenses are classified into the groups,cost of sales,selling expenses,administrative expenses and finance expenses,under IAS 1/AASB 101 they are classified by:

Accepted Answer

A) Nature 
B) Function 
C) Liquidity 
D) Tangibility 
A) Nature 
B) Function 
C) Liquidity 
D) Tangibility

Question 20

An alternative name for the balance sheet is:

Accepted Answer

A) Statement of financial performance 
B) Statement of changes in equity 
C) Statement of financial position 
D) Statement of equity 
A) Statement of financial performance 
B) Statement of changes in equity 
C) Statement of financial position 
D) Statement of equity

Exam 23: Presentation of Financial Statements

An income statement prepared for external use would normally contain more/fewer)specific expenses and income items than one prepared for internal use.

Under the Corporations Act an overriding requirement is that the financial statements must present a t_________ and f________ view of performance and financial position.

It is not

The approach contained in IAS 1/AASB 101 to the determination of a company's profit or loss is:

A summarised set of financial reports sent to a shareholder as an alternative to the full annual financial report,is called a c___________ report.

The statement that is true about concise financial reports is:

The 'all-inclusive' profit approach to determining profit means,in principle,that all income and all e ___________ must be included in the calculation of profit.

Under IAS 1/AASB 101 which format is subscribed for the statement of financial position?

Under the Corporations Act a 'd______________ entity' must prepare a half-yearly financial report in addition to an annual report.

The term that is currently the most commonly preferred for owner's equity in a company balance sheet is:

The statement in the annual report that shows detailed movements in all equity accounts is the statement of ________ in equity.

IAS 1/AASB 101 requires an entity to adopt either a current/_______________ presentation or a liquidity presentation in the statement of financial position.

Which of these is not an expense item that requires separate disclosure under the accounting standards in the statement of profit or loss and other comprehensive income or in the notes attached to the statement?

Under the Corporations Act it is not true that for the presentation of general purpose financial statements the annual financial report:

In the 2011 version of IAS 1/AASB 101 the recommended title for the income statement is:

If expenses are classified into the groups,cost of sales,selling expenses,administrative expenses and finance expenses,under IAS 1/AASB 101 they are classified by:

An alternative name for the balance sheet is:

Decision Making and the Role of Accounting

Financial Statements for Decision Making

Recording Transactions

Adjusting the Accounts and Preparing Financial Statements

Completing the Accounting Cycle

Accounting for Retailing

Accounting for Systems

Accounting for Manufacturing

Cost Accounting Systems

Cash Management and Internal Control

Cost-Volume-Profit Analysis for Decision Making

Budgeting for Planning and Control

Performance Evaluation for Managers

Differential Analysis,profitability Analysis and Capital Budgeting

Partnerships: Formation,operation and Reporting

Companies: Formation and Operations

Regulation and the Conceptual Framework

Receivables

Inventories

Non-Current Assets: Acquisition and Depreciation

Non-Current Assets: Revaluation,disposal and Other Aspects

Liabilities

Liabilities

Analysis and Interpretation of Financial Statements

Filters

Under the Corporations Act an overriding requirement is that the financial statements must present a t_ and f view of performance and financial position.