Deck 10: Structure of Published Financial Statements

Question 1

Under the Fourth Directive income statements may be presented:

A)Only horizontally by nature
B)Only vertically by function
C)Only horizontally by nature or by function
D)Either horizontally or vertically by nature or by function

Answer 1

D

Question 2

In terms of the balance sheet format the Fourth Directive;

A)Requires member states to prescribe the horizontal format
B)Requires member states to prescribe the vertical format
C)Does not require member states to prescribe either format
D)Requires member states to prescribe one or both of the two formats

Answer 2

D

Question 3

Biological assets should be shown separately on the face of the balance sheet.

Answer 3

True

Question 4

An asset should be classified as a current asset even if it is restricted from being exchanged for at least 12 months after the accounting period.

Question 5

The layout of the balance sheet is specified in greater detail in the EU 4^th Directive than in the IASs.

Question 6

Under IAS,A 'statement of comprehensive income' has been mandatory since:

A)2009
B)2008
C)2007
D)2006

Question 7

As a minimum requirement,which of the following is required to be shown as a separate line item on the balance sheet?

A)Property
B)Plant
C)Equipment
D)Investment property

Question 8

Under IAS 1,if the conditions are broken on long term debt it should immediately be classified as a current liability.

Question 9

A non-current asset should continue to be classified as non-current:

A)Until it is decided that it will be sold
B)Until it is actually disposed of
C)For the duration of its originally defined useful life
D)Until it is fully depreciated

Question 10

In the EU companies under a certain size may file abridged account.