Choose the letter of the correct answer. 5. The following statements are correct, except:An entity presents on a net basis gains and losses arising from aа.group of similar transactions.b. An entity shall present a complete set of financial statements atleast annually. d. When an entity does not prepare financial statements on a gand classification of items in the financial statements from oconcern basis, it shall disclose that fact, together with the basis ofwhich it prepared the financial statements, and the reason whyThe PFRS/IFRS does not allow or permit change in presentationС.oneperiod to the next.goingd. When an entity does not prepare financial statements on owhich it prepared the financial statements, and the reaso ofthe entity is not regarded as a going concern.

The following statement An entity presents on a net basis gains and losses arising from a group of similar transactions. а. b. An entity shall present a complete set of financial statements at least annually.

The following statement An entity presents on a net basis gains and losses arising from a group of similar transactions. а. b. An entity shall present a complete set of financial statements at least annually.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter5: Completing The Accounting Cycle

Section: Chapter Questions

Problem 1PB: Identify whether each of the following accounts would be considered a permanent account (yes/no) and...

See similar textbooks

Related questions

Q: Required: i. Prepare the Statement of Profit or Loss and Other Comprehensive Income for the year…

A: Financial statements are the one that shows all the information related to the companies financials,…

Q: IDENTIFICATION OF AN ASSETS, LIABILITY, EQUITY, INCOME, EXPENSES or WITHDRAWAL For each of the…

A: IDENTIFICATION OF AN ASSETS, LIABILITY, EQUITY, INCOME, EXPENSES or WITHDRAWAL Sale of P10,000…

Q: Prepare the company’s Statement of Profit or Loss for the year ended 31 March 20X3, in a form…

A: Given to us is the trial balance and additional information for C L Worcester Ltd who provides…

Q: The worksheet of Entity A shows the following amount. How much is the net income/(net loss)? a. P…

A: Trial balance is t shape account which include all ledger balances related to nominal account, real…

Q: Various types of accounting changes can affect the financial statements of a business enterprise…

A: Accounting error: Accounting errors can be defined as omission of the fundamental accounting…

Q: The stockholders' annual report must include Select one: O a. commnon-size financial statements O b.…

A: An annual report is a report which must be presented yearly to stakeholders by public companies that…

Q: Which statements are correct? Statement 1: Financial statements must be prepared by a…

A: “Since you have posted a question with multiple sub-parts, we will solve first three subparts for…

Q: Depending on the business model for managing financial assets, an entity shall classify financial…

A: A financial asset is a liquid asset with a contractual right or ownership claim as its source of…

Q: Describe” the Ch9 - return on assets ratio. Explain the factors used in the formula, how the ratio…

A: Return on assets ratio is a profitability ratio that explains how much the company is efficient in…

Q: An entity shall present all items of income and expenses recognized in a period: I-in a single…

A: Profit and loss is a financial statement that helps in depicting the position of profitability of an…

Q: 0. The following stat To meet the objective, financial statements should provide information about…

A: The answer is POINT 'B'

Q: Choose the correct. Which of the following items must be disclosed in interim reports?a. Total…

A: Interim Reports: It is the reporting of the financial results of any period that is shorter than a…

Q: ( Elements of Financial Statements ) Five interrelated elements that are most directly related to…

A: Accounting: Accounting is a system, or a process of collecting and organizing economic transactions,…

Q: (Elements of Financial Statements) Ten interrelated elements that are most directly related to…

A: Accounting: Accounting is a system, or a process of collecting and organizing economic transactions,…

Q: The concept of verifiability is complied with when an accounting transaction occurs tha A. involves…

A: A. Involves an arm length transaction between two independent interests

Q: Outline the recognition criteria for the following elements of financial statements:

A: Assets are measured by accumulation of equity and liabilities. Some eg are, land, property, cash…

Q: During the life-time of an entity accounting produce financial statements in accordance with which…

A: According to the accounting concept i.e. “Accounting Period”, In accordance with accounting period…

Q: D. Construct the following extracts of financial statements in respect of the above transactions: i.…

A: we have to give answer considering standard of accounting on provision, contingent liability and…

Q: Which of the following is a group of accounts that shows the rights of the owner or partners of the…

A: In order to fulfill the financial requirements, the business entity issue the equity shares. The…

Q: There is a general requirement that the statement of financial position and the statement of profit…

A: The goal of general purpose financial statements is to give information about an entity's financial…

Q: The liability for a dividend is recorded on which of the following dates? a.last day of the fiscal…

A: Dividend: It is the portion of the profit which is distributed to the shareholders of the company

Q: For each item below, indicate to which category of elements of financial statements it belongs. a.…

A: Particulars Category a. Retained earnings. Equity b. Sales. Revenue c. Additional…

Q: Entities should disclose all of the following in interim financial report, except: a. Basic and…

A: Earlier period blunders are oversights from, and misquotes in, the substance's budget summaries for…

Q: An entity uses a calnedar period for is financial reporting. Its current financial statements are…

A: As per PFRS 10, Events after the reporting period are those events, that occur between the end of…

Q: S1: Financial statements must be prepared by a publicly-listed entity at least semiannually. S2: An…

A: The financial statements are prepared by an entity in order to show the financial performance and…

Q: A prior period adjustment ahould be reflected, net of applicable income taxes, in the financial…

A: Prior period adjustments: These are the items of adjustments arising in the current period due to…

Q: Which one or more of the following is a company obliged to disclose when preparing financial…

A: Disclosures in the Financial Statements of the company : The purpose of the financial…

Q: 1.This document communicates what the entity owns in terms of assets, what it owes in the terms of…

A: Balance Sheet: Balance sheet is a financial statement which helps to know financial position of…

Q: Which of the following financial statements lists the entity's assets, liabilities, and…

A: Financial statements include balance sheet, profit and loss account and statement of changes in…

Q: Where financial statements for a single year are being presented, a prior period error recognized in…

A: Financial statements are a collection of summary-level reports about an organization's financial…

Q: Match the correct answer with these terms : cash, cell, SL depreciation, tangible, fiscal, a…

A: Given options,

Q: Ten interrelated elements that are most directly related to measuring the performance and financial…

A: Accounting: Accounting is a system, or a process of collecting and organizing economic transactions,…

Q: The account that represents the increase in a firms net assets since its incorporation is

A: A. Non- Current Liability

Q: Which of the following items must be disclosed in interim reports?a. Total assets.b. Total…

A: Interim Reports: It is the reporting of the financial results of any period that is shorter than a…

Q: Which accounting method will result in financial statements that report a more complete picture of a…

A: Financial statements of an entity are the reports prepared for the purpose of analyzing the…

Q: REQUIRED: Prepare the Statement of Comprehensive Income and the Statement of Financial Position as…

A: As per the format and sequence, ratio analysis is done when financial statements are prepared. The…

Q: Realized gains and losses on investments available for sale are reported a. as a current asset b.…

A: Realized gains and losses on investments available for sale are reported on the income statement…

Q: For a publicly owned company, indicate which of the fol-lowing accounting activities are likely to…

A: Publicly owned companies: Publicly owned companies are those companies whose shares are listed on a…

Q: Required: Prepare a statement of profit or loss for the year ending 31 May 2016 and a statement of…

A: Statement of profit and loss account Particulars Amount ( EURO) Total (EURO) Sales 138,078…

Q: Which of the following situation can be related to accrual concept while presentation of financial…

A: The accrual concept is the concept of accounting that states that whether the money incurred or not,…

Question

Choose the letter of the correct answer.

5. The following statements are correct, except:
An entity presents on a net basis gains and losses arising from a
а.
group of similar transactions.
b. An entity shall present a complete set of financial statements at
least annually.

d. When an entity does not prepare financial statements on a g
and classification of items in the financial statements from o
concern basis, it shall disclose that fact, together with the basis of
which it prepared the financial statements, and the reason why
The PFRS/IFRS does not allow or permit change in presentation
С.
one
period to the next.
going
d. When an entity does not prepare financial statements on o
which it prepared the financial statements, and the reaso of
the entity is not regarded as a going concern.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1 Answer

VIEW

Step 2 Reason

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

1.This document communicates what the entity owns in terms of assets, what it owes in the terms of liabilities, and the difference between those two which represents what the owners o the company are entitled to. A. Income Statement B. Balance Sheet
S1: Financial statements must be prepared by a publicly-listed entity atleast semiannually. S2: An entity shall present the income statement moreprominently. A. True, TrueB. False, FalseC. True, FalseD. False, True
During the life-time of an entity accounting produce financial statements in accordance with which basic accounting concept:(a) Conservation(b) Matching(c) Accounting period(d) None of the above
Which statements are correct? Statement 1: Financial statements must be prepared by a publicly-listed entity at least semiannually. Statement 2: An entity shall present the income statement more prominently. Statement 3: Revenues are income that arises from the ordinary course of business activities. Statement 4: Revenues may arise from decrease in liability from primary operations. Statement 5: Generally, revenue is recognized when the earning process is complete and a valid promise of payment has been received. Statement 6: Revenues arise from sale of goods or services, use of entity resources and disposal of noncurrent assets of the businesses. Statement 7: Under the transactions approach, net income is computed as the excess of income over expenses. Statement 8: Under 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. Statement 9: Unusual and infrequent items…
Which of the following increases the current assets of a business entity? A) Consumable inventory B) Bank (credit balance) C) Investment (with a maturity date of more than one year hance) D) Deferred income
If a business entity entered into certain related party transactions, it would be required to disclose all of the following information except the nature of the relationship between the parties to the transactions. dollar amount of the transactions for each of the periods for which an income statement is presented. nature of any future transactions planned between the parties and the terms involved. amounts due from or to related parties as of the date of each balance sheet presented.
Assuming the entity paid its liabilities incurred prior year, what is the proper debit for this transaction? a.) Accounts Receivable b.) Supplies Expense c.) Cash d.) Accounts Payable
Also known as the historical cost principle, ________ states that everything the company owns or controls (assets) must be recorded at their value at the date of acquisition. A. revenue recognition principle B. expense recognition (matching) principle C. cost principle D. full disclosure principle
Identify whether each of the following accounts would be considered a permanent account (yes/no) and which financial statement it would be reported on (Balance Sheet, Income Statement, or Retained Earnings Statement). A. Common Stock B. Dividends C. Dividends Payable D. Equipment E. Income Tax Expense F. Income Tax Payable G. Service Revenue H. Unearned Service Revenue I. Net Income
The profit or loss of the entity based from its current operation is required, under IAS 1 Presentation of Financial Statements, to be presented on the face of the: a. statement of comprehensive income b. cash flow statement c. statement of cash flows d. statement of changes in equity
Is it true or not? When the accrual basis of accounting is used, an entity recognises items as assets, liabilities, equity, income, and expenses (the elements of financial statements) when they satisfy the definitions and recognition criteria for those elements in the Conceptual Framework for Financial Reporting (CF).
If an entity prepares restated financial statements in accordance with the requirements of IAS29, the gain or loss on the entity's net monetary position is shown in other comprehensive income. True False