1. S1: A change in accounting estimate is accounted for as a prior period adjustment to the opening balance of retained earnings. S2: A change in depreciation method is to be treated as a change in accounting policy. True, TrueFalse, FalseTrue, FalseFalse, True 2. Which is not usually presented as part of current assets? Three-month time depositDividend receivableAdvances to affiliatesPrepaid subscription expenses 3. S1: Financial statements must be prepared by a publicly-listed entity at least semiannually. S2: An entity shall present the income statement more prominently. True, TrueFalse, FalseTrue, FalseFalse, True 4. Which statement is incorrect? Under the transactions approach, net income is computed as the excess of income over expensesUnder the capital maintenance approach, net income is computed as the excess of ending capital over beginning capital, excluding the effect of investments and withdrawals by owners.Unusual and infrequent items of expenses should be presented in in the income statement as a component of income from continuing operation.The single statement of comprehensive income shows a detailed presentation of all income and expenses, regardless of whether these income and expenses are recognized or not in the profit or loss.None of the above 5. S1: In the statement of changes in equity, the effect of the correction of a prior period error is presented separately for each component of equity. S2: Preference share dividend appear under the retained earnings section of the statement of changes in equity. True, TrueFalse, FalseTrue, FalseFalse True 6. The following are non-adjusting events, except Declaration of dividends after the reporting date does not indicate existence of liability to pay dividends at the reporting date and shall not therefore trigger the recognition of liability in financial statementsDestruction of assets of the entity by floods occurring after the reporting period does not indicate that the assets of the entity were impaired at the end of reporting period.Management’s plan to discontinue or significantly curtail its activities in major geographic segments.Detection of fraud or errors after the reporting period may indicate that the financial statements are misstated. 7. Which statement is incorrect? The systematic manner of presentation of Notes to F/S is mandatory, as far as practicable.The first item to be presented in the Notes to F/S is the statement of compliance with PFRS.The cross reference between each line item in the F/S and any related information disclosed in the Notes to F/S is mandatory.None of the above 8. Which statement is incorrect? Revenues are income that arises from the ordinary course of business activities.Revenues may arise from decrease in liability from primary operations.Generally, revenue is recognized when the earning process is complete and a valid promise of payment has been received.Revenues arise from sale of goods or services, use of entity resources and disposal of noncurrent assets of the businesses.None of the above 9. The entity classified a building as held for sale on January 1, 2020. However, the company decided to use it for a product line expansion on December 31, 2020. Which of the following statements are true? The company will record depreciation expense for the year 2020.The company will recognize an impairment loss on January 1, 2020, if applicable.I onlyII onlyBoth I and IINone of the above

Question

1. S1: A change in accounting estimate is accounted for as a prior period adjustment to the opening balance of retained earnings. S2: A change in depreciation method is to be treated as a change in accounting policy. True, TrueFalse, FalseTrue, FalseFalse, True  2. Which is not usually presented as part of current assets? Three-month time depositDividend receivableAdvances to affiliatesPrepaid subscription expenses  3. S1: Financial statements must be prepared by a publicly-listed entity at least semiannually. S2: An entity shall present the income statement more prominently. True, TrueFalse, FalseTrue, FalseFalse, True  4. Which statement is incorrect? Under the transactions approach, net income is computed as the excess of income over expensesUnder the capital maintenance approach, net income is computed as the excess of ending capital over beginning capital, excluding the effect of investments and withdrawals by owners.Unusual and infrequent items of expenses should be presented in in the income statement as a component of income from continuing operation.The single statement of comprehensive income shows a detailed presentation of all income and expenses, regardless of whether these income and expenses are recognized or not in the profit or loss.None of the above  5. S1: In the statement of changes in equity, the effect of the correction of a prior period error is presented separately for each component of equity. S2: Preference share dividend appear under the retained earnings section of the statement of changes in equity. True, TrueFalse, FalseTrue, FalseFalse True  6. The following are non-adjusting events, except Declaration of dividends after the reporting date does not indicate existence of liability to pay dividends at the reporting date and shall not therefore trigger the recognition of liability in financial statementsDestruction of assets of the entity by floods occurring after the reporting period does not indicate that the assets of the entity were impaired at the end of reporting period.Management’s plan to discontinue or significantly curtail its activities in major geographic segments.Detection of fraud or errors after the reporting period may indicate that the financial statements are misstated.   7. Which statement is incorrect? The systematic manner of presentation of Notes to F/S is mandatory, as far as practicable.The first item to be presented in the Notes to F/S is the statement of compliance with PFRS.The cross reference between each line item in the F/S and any related information disclosed in the Notes to F/S is mandatory.None of the above  8. Which statement is incorrect? Revenues are income that arises from the ordinary course of business activities.Revenues may arise from decrease in liability from primary operations.Generally, revenue is recognized when the earning process is complete and a valid promise of payment has been received.Revenues arise from sale of goods or services, use of entity resources and disposal of noncurrent assets of the businesses.None of the above  9. The entity classified a building as held for sale on January 1, 2020. However, the company decided to use it for a product line expansion on December 31, 2020. Which of the following statements are true? The company will record depreciation expense for the year 2020.The company will recognize an impairment loss on January 1, 2020, if applicable.I onlyII onlyBoth I and IINone of the above

Accepted Answer

Hey there since you have posted multiple questions, we can answer only first three questions, please…