Question 1

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

Accepted Answer

A) True 
 B)False

Question 2

The requirements of AASB 101 Presentation of Financial Statements apply to both general purpose financial statements and condensed interim financial statements.

Accepted Answer

A) True 
 B)False

Question 3

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

Accepted Answer

A) True 
 B)False

Question 4

One of the primary objectives of the statement of financial position is to provide information about an entity's financial position including its assets,liabilities and equity.

Accepted Answer

A) True 
 B)False

Question 5

AASB 101 Presentation of Financial Statements requires that a financial report:

Accepted Answer

A) does not need to include the reporting period or date. 
B) must include the name of the entity. 
C) always be prepared as if the company is not a going concern. 
D) be prepared on the cash basis of accounting. 
A) does not need to include the reporting period or date. 
B) must include the name of the entity. 
C) always be prepared as if the company is not a going concern. 
D) be prepared on the cash basis of accounting.

Question 6

Although currently voluntary,it is likely that Corporate Social Responsibility (CSR)reporting will be regulated by the introduction of an accounting standard in the near future.

Accepted Answer

A) True 
 B)False

Question 7

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

Accepted Answer

A) True 
 B)False

Question 8

Which of the following is not an example of an assumption that must be disclosed under AASB 101 Presentation of Financial Statements when future-oriented estimates are necessary to measure the recoverable amount of assets?

Accepted Answer

A) Useful lives 
B) Future interest rates 
C) Future changes in salaries 
D) Future bad debts 
A) Useful lives 
B) Future interest rates 
C) Future changes in salaries 
D) Future bad debts

Question 9

According to AASB 101 Presentation in 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 10

A statement of changes in equity provides details of the changes in an entity's net assets.

Accepted Answer

A) True 
 B)False

Question 11

The term 'finance costs' is synonymous with:

Accepted Answer

A) advances from lenders. 
B) loans payable. 
C) non-current liabilities. 
D) interest expense. 
A) advances from lenders. 
B) loans payable. 
C) non-current liabilities. 
D) interest expense.

Question 12

The notes are an integral part of the financial statements.

Accepted Answer

A) True 
 B)False

Question 13

Revenue arises from a company's ordinary activities.

Accepted Answer

A) True 
 B)False

Question 14

The requirements of AASB 101 Presentation of Financial Statements apply to which of the following sets of financial statements?

Accepted Answer

A) Condensed interim financial statements 
B) All purpose financial statements 
C) General purpose financial statements 
D) Special purpose financial statements 
A) Condensed interim financial statements 
B) All purpose financial statements 
C) General purpose financial statements 
D) Special purpose financial statements

Question 15

AASB 101 Presentation of Financial Statements requires entities to use the current/non-current method of classifying assets and liabilities in the statement of financial position.

Accepted Answer

A) True 
 B)False

Question 16

Which of the following items are not permitted to be disclosed as separate line items on the face of the statement of financial position?

Accepted Answer

A) Investment property 
B) Cash and cash equivalents 
C) Deferred tax assets 
D) Share of profit of associates 
A) Investment property 
B) Cash and cash equivalents 
C) Deferred tax assets 
D) Share of profit of associates

Question 17

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

Question 18

AASB 101 Presentation of Financial Statements requires a single statement approach be adopted in the preparation of the statement of profit or loss and other comprehensive income.

Accepted Answer

A) True 
 B)False

Question 19

According to AASB 101 Presentation of Financial Statements,a required format for the presentation of the statement of profit or loss and other comprehensive income is:

Accepted Answer

A) prescribed by the Corporations Act. 
B) not prescribed and no guidance is provided in the standard for a suitable format. 
C) not prescribed but guidance is provided in the standard for a suitable format. 
D) prescribed by the standard and further details are found in the Corporations Act. 
A) prescribed by the Corporations Act. 
B) not prescribed and no guidance is provided in the standard for a suitable format. 
C) not prescribed but guidance is provided in the standard for a suitable format. 
D) prescribed by the standard and further details are found in the Corporations Act.

Question 20

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

Exam 15: Disclosure: Presentation of Financial Statements

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

The requirements of AASB 101 Presentation of Financial Statements apply to both general purpose financial statements and condensed interim financial statements.

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

One of the primary objectives of the statement of financial position is to provide information about an entity's financial position including its assets,liabilities and equity.

AASB 101 Presentation of Financial Statements requires that a financial report:

Although currently voluntary,it is likely that Corporate Social Responsibility (CSR)reporting will be regulated by the introduction of an accounting standard in the near future.

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

Which of the following is not an example of an assumption that must be disclosed under AASB 101 Presentation of Financial Statements when future-oriented estimates are necessary to measure the recoverable amount of assets?

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

A statement of changes in equity provides details of the changes in an entity's net assets.

The term 'finance costs' is synonymous with:

The notes are an integral part of the financial statements.

Revenue arises from a company's ordinary activities.

The requirements of AASB 101 Presentation of Financial Statements apply to which of the following sets of financial statements?

AASB 101 Presentation of Financial Statements requires entities to use the current/non-current method of classifying assets and liabilities in the statement of financial position.

Which of the following items are not permitted to be disclosed as separate line items on the face of the statement of financial position?

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.

AASB 101 Presentation of Financial Statements requires a single statement approach be adopted in the preparation of the statement of profit or loss and other comprehensive income.

According to AASB 101 Presentation of Financial Statements,a required format for the presentation of the statement of profit or loss and other comprehensive income is:

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

Nature and Regulation of Companies

Financing Company Operations

Company Operations

Fundamental Concepts of Corporate Governance

Fair Value Measurement

Accounting for Company Income Tax

Financial Instruments

Foreign Currency Transactions and Forward Exchange Contracts

Property, Plant and Equipment

Leases

Intangible Assets

Business Combinations

Impairment of Assets

Disclosure: Legal Requirements and Accounting Polices

Disclosure: Statement of Cash Flows

Disclosure: 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

Investments in Joint Arrangements

Insolvency and Liquidation

Filters