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Problem 8-4 Multiple 1. The major financial statements include all, except a. Statement of financial position b. Statement of changes in financial position c. Statement of comprehensive income d Statement of changes in equity

Problem 8-4 Multiple 1. The major financial statements include all, except a. Statement of financial position b. Statement of changes in financial position c. Statement of comprehensive income d Statement of changes in equity

Cornerstones of Financial Accounting
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter1: Accounting And The Financial Statements
Section: Chapter Questions
Problem 16CE: Cornerstone Exercise 1-16 Financial Statements Listed below are elements of the financial...
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Kindly answer the following items in problems 8-4 and 8-5.
Problem 8-4 Multiple choice (PAS 1) 1. The major financial statements include all a. Statement of financial position b. Statement of changes in financial position c. Statement of comprehensive income d. Statement of changes in equity 2. The major financial statements include all, except a. Statement of financial position b. Income statement c. Statement of cash flows d. Statement of retained earnings , except 3. What is the objective of financial statements? a. To provide information about the financial position, financial performance and changes in financial position of an entity that is useful to a wide range of users in making economic decisions. b. To present a statement of financial position and a statement of comprehensive income. c. To present relevant, reliable, comparable and understandable information to investors. d. To present financial statements in accordance with all applicable standards. 4. Financial statements must be prepared at least a. Annually b. Quarterly c. Semiannually d. Every two years 5. When entity changed the end of reporting period longer or shorter than one year, the entity shall disclose all, except a. Period covered by the financial statements b. The reason for using a longer or shorter period c. The fact that amounts presented are not entirely comparable d. The fact that similar entities have done so 156 Pre 1. 2. 3. 4. 5.
Transcribed Image Text:Problem 8-4 Multiple choice (PAS 1) 1. The major financial statements include all a. Statement of financial position b. Statement of changes in financial position c. Statement of comprehensive income d. Statement of changes in equity 2. The major financial statements include all, except a. Statement of financial position b. Income statement c. Statement of cash flows d. Statement of retained earnings , except 3. What is the objective of financial statements? a. To provide information about the financial position, financial performance and changes in financial position of an entity that is useful to a wide range of users in making economic decisions. b. To present a statement of financial position and a statement of comprehensive income. c. To present relevant, reliable, comparable and understandable information to investors. d. To present financial statements in accordance with all applicable standards. 4. Financial statements must be prepared at least a. Annually b. Quarterly c. Semiannually d. Every two years 5. When entity changed the end of reporting period longer or shorter than one year, the entity shall disclose all, except a. Period covered by the financial statements b. The reason for using a longer or shorter period c. The fact that amounts presented are not entirely comparable d. The fact that similar entities have done so 156 Pre 1. 2. 3. 4. 5.
cept ot sition, ancial nge of and a = and with r or cept ely . Problem 8-5 Multiple choice (PAS 1) 1. The operating cycle is measured at The mean value a. b. The median value Twelve months C. d. Three years 2. The operating cycle of an entity Is the time between the acquisition of materials entering into a process and their realization in cash. b. Is time in converting accounts receivable into cash. Is a period of one year. C. d. Is the seasonal variation experienced by entities. a. 3. An entity shall classify an asset as current under all, except a. The entity expects to realize the asset or intends to sell or consume it within the normal operating cycle. b. The entity holds the asset for the purpose of trading. c. The entity expects to realize the asset within twelve months after the reporting period. d. Cash restricted to settle a liability for more than twelve months after reporting period. 4. An entity shall classify a liability as current, except a. The entity expects to settle the liability within the entity's normal operating cycle. b. The entity holds the liability primarily for trading. The liability is due to be settled within twelve months after the reporting period. c. d. The entity has a right to defer settlement for at least twelve months after reporting period. 5. In the Philippines, the common practice is to present in the statement of financial position a. Current before noncurrent assets, current before noncurrent liabilities and equity after liabilities. b. Noncurrent before current assets, noncurrent before current liabilities and equity after liabilities. c. Current before noncurrent assets, noncurrent before current liabilities and equity after liabilities. d. Noncurrent before current assets, current before noncurrent liabilities and equity after liabilities. 157
Transcribed Image Text:cept ot sition, ancial nge of and a = and with r or cept ely . Problem 8-5 Multiple choice (PAS 1) 1. The operating cycle is measured at The mean value a. b. The median value Twelve months C. d. Three years 2. The operating cycle of an entity Is the time between the acquisition of materials entering into a process and their realization in cash. b. Is time in converting accounts receivable into cash. Is a period of one year. C. d. Is the seasonal variation experienced by entities. a. 3. An entity shall classify an asset as current under all, except a. The entity expects to realize the asset or intends to sell or consume it within the normal operating cycle. b. The entity holds the asset for the purpose of trading. c. The entity expects to realize the asset within twelve months after the reporting period. d. Cash restricted to settle a liability for more than twelve months after reporting period. 4. An entity shall classify a liability as current, except a. The entity expects to settle the liability within the entity's normal operating cycle. b. The entity holds the liability primarily for trading. The liability is due to be settled within twelve months after the reporting period. c. d. The entity has a right to defer settlement for at least twelve months after reporting period. 5. In the Philippines, the common practice is to present in the statement of financial position a. Current before noncurrent assets, current before noncurrent liabilities and equity after liabilities. b. Noncurrent before current assets, noncurrent before current liabilities and equity after liabilities. c. Current before noncurrent assets, noncurrent before current liabilities and equity after liabilities. d. Noncurrent before current assets, current before noncurrent liabilities and equity after liabilities. 157
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