PROBLEMS Problem 3-1 Multiple choice (PÁS 1) 1. What is the purpose of notes to financial statements? a. To present information about the basis of preparation of the statements and accounting policies used. b. To disclose the information required by PFRS not presented elsewhere in the financial statements. c. To provide additional information not presented but necessary for a fair presentation. d. All of these can be considered a purpose of the notes. 2. What is the first item in presenting the notes? a. Statement of compliance with PFRS b. Other disclosures, such as contingent liabilities and unrecognized contractual commitments c. Supporting information for items presented on the face of the financial statements d. Summary of significant accounting policies. 3. An entity whose financial statements comply with PFRS shall a. Make an explicit statement of compliance in the notes. b. Make an unreserved statement of compliance in the notes. c. Make an explicit and unreserved statement of compliance in the notes. d. Not describe financial statements as complying with PFRS. 4. An entity is required to disclose all of the following nonfinancial information, except a. A description of the nature of the entity's operations. b. The name of the parent entity and the ultimate parent. c. Domicile and legal form of the entity, the country of incorporation and address of the registered office. d. Names and addresses of directors and officers. 5. Notes to financial statements a. Are relatively unimportant facts b. Document the source of financial statement facts . Are an integral part of financial statements d. Are irrelevant and immaterial facts
PROBLEMS Problem 3-1 Multiple choice (PÁS 1) 1. What is the purpose of notes to financial statements? a. To present information about the basis of preparation of the statements and accounting policies used. b. To disclose the information required by PFRS not presented elsewhere in the financial statements. c. To provide additional information not presented but necessary for a fair presentation. d. All of these can be considered a purpose of the notes. 2. What is the first item in presenting the notes? a. Statement of compliance with PFRS b. Other disclosures, such as contingent liabilities and unrecognized contractual commitments c. Supporting information for items presented on the face of the financial statements d. Summary of significant accounting policies. 3. An entity whose financial statements comply with PFRS shall a. Make an explicit statement of compliance in the notes. b. Make an unreserved statement of compliance in the notes. c. Make an explicit and unreserved statement of compliance in the notes. d. Not describe financial statements as complying with PFRS. 4. An entity is required to disclose all of the following nonfinancial information, except a. A description of the nature of the entity's operations. b. The name of the parent entity and the ultimate parent. c. Domicile and legal form of the entity, the country of incorporation and address of the registered office. d. Names and addresses of directors and officers. 5. Notes to financial statements a. Are relatively unimportant facts b. Document the source of financial statement facts . Are an integral part of financial statements d. Are irrelevant and immaterial facts
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter2: The Accounting Information System
Section: Chapter Questions
Problem 36E
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Transcribed Image Text:PROBLEMS
Problem 3-1 Multiple choice (PÁS 1)
1. What is the purpose of notes to financial statements?
a. To present information about the basis of preparation
of the statements and accounting policies used.
b. To disclose the information required by PFRS not
presented elsewhere in the financial statements.
c. T'o provide additional information not presented but
necessary for a fair presentation.
d. All of these can be considered a purpose of the notes.
2. What is the first item in presenting the notes?
a. Statement of compliance with PFRS
b. Other disclosures, such as contingent liabilities and
unrecognized contractual commitments
c. Supporting information for items presented on the
face of the financial statements
d. Summary of significant accounting policies.
3. An entity whose financial statements comply with PFRS
shall
a. Make an explicit statement of compliance in the notes.
b. Make an unreserved statement of compliance in the
notes.
c. Make an explicit and unreserved statement of
compliance in the notes.
d. Not describe financial statements as complying with
PFRS.
4. An entity is required to disclose all of the following
nonfinancial information, except
a. A description of the nature of the entity's operations.
b. The name of the parent entity and the ultimate parent.
c. Domicile and legal form of the entity, the country of
incorporation and address of the registered office.
d. Names and addresses of directors and officers.
5. Notes to financial statements
a. Are relatively unimportant facts
b. Document the source of financial statement facts
C. Are an integral part of financial statements
d. Are irrelevant and immaterial facts
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